Complete ITIN guide for non-resident business owners. Learn eligibility, documents, and tax benefits. We handle your application as Certifying Agents.
If you're running a US business without a Social Security Number, you need an Individual Taxpayer Identification Number (ITIN). This nine-digit tax ID enables you to file US tax returns, open business bank accounts, and stay compliant with IRS requirements.
Whether you're forming a Wyoming LLC or Delaware corporation, understanding the ITIN process is crucial for your business operations and tax compliance.
An Individual Taxpayer Identification Number (ITIN) is a unique nine-digit tax processing number issued by the IRS. It always begins with "9" and follows this format: 9XX-XX-XXXX.
The ITIN was established by the IRS in July 1996 to ensure tax compliance among foreign nationals and individuals not eligible for a Social Security Number. It enables you to fulfill US tax obligations regardless of your immigration status.
Many business owners confuse these three tax identification numbers. Here's a clear comparison:
| Feature | ITIN | SSN | EIN |
|---|---|---|---|
| Issued To | Individuals (no SSN eligibility) | US citizens, residents, visa holders | Business entities |
| Purpose | File federal taxes | Employment & taxes | Business identification |
| Starts With | 9 | Any digit | Varies |
| Format | 9XX-XX-XXXX | XXX-XX-XXXX | XX-XXXXXXX |
| Work Authorization | No | Yes (if eligible) | N/A |
| Social Security Benefits | No | Yes | N/A |
| Can Coexist? | No (SSN replaces ITIN) | No (replaces ITIN) | Yes (with SSN/ITIN) |
| Application | Form W-7 | Social Security Admin | Form SS-4 |
All US businesses need an EIN for federal tax filing purposes, regardless of whether the owner has an ITIN, SSN, or neither.
You need an ITIN if you have a US federal tax purpose but aren't eligible for a Social Security Number. Here are common scenarios:
A federal tax purpose exists when you:
The ITIN application involves three main components: Form W-7, supporting documents, and a US tax return.
You have several options for submitting your ITIN application:
Mail complete package to:
Pros: No fees, direct to IRS Cons: 60-day wait for document return, risk of lost mail, 7-11 weeks processing
CAAs are IRS-authorized agents who can authenticate your original documents and return them immediately.
Pros: Keep your passport, expert assistance, issue resolution support Cons: Service fees apply Availability: US and international
Visit an IRS office with ITIN services for free document authentication.
Pros: Free service, immediate document return Cons: Appointment required (weeks of wait), limited locations, cannot authenticate school/medical records
Select Volunteer Income Tax Assistance sites have CAAs offering free services.
Pros: Free ITIN help and tax prep Cons: Very limited locations (US only), income requirements, seasonal
| Notice | Meaning | Action Required |
|---|---|---|
| CP565 | ITIN assigned successfully | None - save for records |
| CP566 | More information needed | Respond with requested documents |
| CP567 | Application rejected | Resubmit with corrections |
While ITINs have limitations, they enable several valuable tax benefits:
ITINs are not permanent. They expire under two conditions:
1. Three-Year Non-Use Rule Your ITIN expires on December 31 if it hasn't been used on a federal tax return for three consecutive years.
2. Middle Digit Expiration ITINs with these middle digits have already expired:
| Issue | Impact |
|---|---|
| Delayed Refunds | IRS processes return but holds refund until renewal |
| Lost Tax Credits | Ineligibility for CTC, AOTC, and other credits |
| Penalties & Interest | If lost credits increase tax owed |
| Processing Delays | Return held until ITIN renewed |
The renewal process is identical to applying for a new ITIN:
Foreign entrepreneurs running US businesses often need ITINs for several purposes:
Most US banks require either an SSN or ITIN to open business bank accounts. With an ITIN, you can:
Opening a business bank account is one of the first steps after forming your LLC, and having an ITIN ready expedites this process significantly.
An ITIN enables you to:
Combined with proper bookkeeping and accounting services, an ITIN helps you present a professional financial profile to lenders and credit card issuers.
As of March 2025, foreign reporting companies registered to do business in the US must file Beneficial Ownership Information reports with FinCEN.
Requirements:
Information Required:
Penalties for Non-Compliance:
The IRS emphasizes that ITINs are "for federal tax purposes only." Section 6103 of the Internal Revenue Code protects taxpayer privacy by prohibiting the IRS from sharing information with other government agencies.
In April 2025, the Department of Homeland Security and Treasury entered an agreement allowing limited information sharing with Immigration and Customs Enforcement (ICE).
Scope of Agreement:
Legal Status: Litigation is ongoing regarding this agreement's legality. A district court allowed it to proceed, finding it may fall within statutory exceptions for non-tax criminal offenses.
If you later become eligible for a Social Security Number (e.g., obtaining a green card or work visa), you must stop using your ITIN and notify the IRS.
Why This Matters: Failure to notify the IRS means you won't receive credit for all wages paid and taxes withheld, potentially reducing your refunds or Social Security benefits in the future.
The IRS and Taxpayer Advocate Service are actively working to improve the ITIN process:
Current Initiatives:
These modernization efforts aim to reduce processing times, minimize document submission burdens, and improve the overall applicant experience.
An ITIN is essential for nonresident business owners who need to comply with US tax obligations. While the application process requires careful attention to detail, working with a Certifying Acceptance Agent simplifies the experience and protects your valuable documents.
Key Takeaways:
Join 2,500+ international entrepreneurs who trust us for US company formation and compliance.
