ITIN, EIN and a US Bank Account for a Foreign Investor: What You Need, When and How

1What is the difference between an SSN, an ITIN and an EIN?

In brief: an SSN is a number for working citizens and residents, an ITIN is a personal tax number for foreigners who have no SSN, and an EIN is a number for a business entity. A typical Israeli investor is not eligible for an SSN, and will therefore use an ITIN for himself and an EIN for the entity that holds the property.

2How do you obtain an EIN for an LLC when the owner is Israeli?

The direct answer: you file Form SS-4 with the IRS by phone, fax or mail. The online application is not available to international applicants, that is, to someone who has no residence, principal place of business or principal office in the US. According to the form instructions:

• Phone: 267-941-1099 (not a toll-free number), Monday through Friday between 6:00 a.m. and 11:00 p.m. Eastern Time. The caller must be authorized to receive the number on behalf of the entity.
• Fax: from outside the US to 304-707-9471. The number is usually received within four business days, by return fax, so a fax number must be stated in the application.
• Mail: Internal Revenue Service, Attn: EIN International Operation, Cincinnati, OH 45999. About four weeks, so file at least four to five weeks before you need the number.
• The responsible party (Responsible Party): must be an individual, the person who ultimately owns or controls the entity. If he has no SSN or ITIN and is not eligible for an ITIN, write the word 'foreign' in field 7b. There is no need to wait for an ITIN in order to form an LLC.
• Single-member LLC with a foreign owner: the form instructions allow an EIN to be requested for the purpose of filing Form 5472, with a dedicated description of a foreign-owned disregarded entity.

3When does an Israeli investor need an ITIN?

An ITIN is required when a person needs to file a US tax return or appear in one, and has no SSN. For real estate investors this happens mainly in these situations:

• Rental income under the net track: someone who elects to be taxed on net income files a 1040-NR return each year, which requires an identification number.
• Sale of a property: in order to receive a refund of the tax withheld under FIRPTA, and to receive from the IRS a stamped copy of Form 8288-A.
• LLC with several members: each foreign partner receives a report of his share and files a personal return.
• Mortgage on a US property: when the lender needs to report the interest.

4How do you apply for an ITIN, and what are the exceptions?

The rule: you fill out Form W-7 and attach it to the first tax return (1040-NR), together with identity documents. The passport is the only document that suffices on its own to prove the identity and foreign status. You must send the original or a copy certified by the agency that issued the document. A copy certified by a notary is not enough.

There are exceptions that allow filing Form W-7 without a tax return. The important ones for real estate investors:

• Where to file: by mail to the IRS service center in Austin, at an IRS service center in the US (by appointment), or through a Certifying Acceptance Agent. Such an agent verifies the passport, so there is no need to send the original to the US.
• Processing times: according to the IRS, about 7 weeks for a notice. During the filing season (January 15 to April 30) or when filing from abroad, 9 to 11 weeks. Original documents are returned within 60 days.
• Expiration: an ITIN that has not been used on a federal tax return for three consecutive tax years expires on December 31 of the third year. Renewal is done on Form W-7, as a rule with a tax return.

5How do you open a US bank account as a foreign investor?

The direct answer: it is possible, but it depends on the bank. Under the customer identification program (CIP) rules of federal regulation, a bank may accept from a foreign customer, instead of a tax number, a passport number and country of issuance or another government document. It may also open an account for a customer who has applied for a tax number and has not yet received it. However, the rules set only a minimum threshold, and each bank sets its own policy. In practice, many banks require a physical visit to the branch, additional documents or a minimum level of activity.

For an LLC account the bank will generally ask for:

1. A certificate of formation (Articles of Organization) and a good standing certificate for the entity in the state.
2. The IRS letter assigning the EIN.
3. The Operating Agreement, which lists the holders of the interests and the authorized signatories.
4. A passport of each controlling person and authorized signatory, and sometimes an additional identity document and proof of residential address.
5. Form W-8BEN from the foreign interest holders, as a declaration of foreign status for withholding purposes.
6. An explanation of the source of the funds and the purpose of the account, under the bank's anti-money laundering requirements.

6What should you check on the Israeli side?

Transferring funds to the US and holding an account there also create obligations in Israel:

• Transfer from the Israeli bank: the bank will usually require documents on the purpose of the transfer and the source of the funds. It is worth preparing in advance the purchase contract, the LLC documents and the details of the escrow account of the title company.
• Reporting to the Israel Tax Authority: income from the property and from the account is reported in the annual return, with the foreign income appendix. If the Israel Tax Authority requests a capital declaration, the account and the interests in the LLC are included in it.
• Power of attorney and authentication of signatures: formation documents, loan agreements and closing documents are often signed remotely. A document signed in Israel for use in the US often requires notarial authentication and an apostille, according to the requirement of the US party.

7In what order is all this done? A practical timetable

1. Decision on the holding structure (personal or LLC), together with an attorney and accountant in both countries.
2. Forming the LLC in the relevant state and appointing a registered agent. Usually days to weeks, depending on the state.
3. Requesting an EIN by fax or phone. By fax, about four business days.
4. Opening a bank account for the entity. This is the stage whose duration is hardest to predict, so it is worth starting it before committing to a closing date.
5. Purchase and closing through the title company, and giving Form W-8ECI to the management company if you elect the net track.
6. ITIN together with the first tax return, or earlier under one of the exceptions.
7. Annual calendar of deadlines: the 1040-NR return, Form 5472 if required, a state return and an annual return in Israel.

Regarding beneficial owner reporting to FinCEN (BOI): as of October 2026, companies formed in the US are exempt from reporting under FinCEN's final rule, and the obligation applies to foreign entities registered to do business in a US state. It is worth checking this subject again before formation.

8Before you sign: how we accompany the organizing stage

Identification numbers and a bank account sound like a technical matter, but a delay in them can postpone a closing or lock up unnecessary funds. We build with the investor a timetable that starts from the closing date and works backwards, prepare the entity documents and powers of attorney, coordinate with the bank and the title company, and make sure that all the numbers and forms are ready before the transaction needs them.

Read next · 9 min readTitle Insurance and Escrow in a US Transaction: What Protects You and What Does NotTitle insurance and escrow in the US: what the owner's policy covers, exceptions to check, how the escrow account works and how to defend against wire fraud.Read the guide

The information in this guide is general in nature and does not constitute legal or tax advice on any specific transaction. Every transaction is assessed on its own facts.