Complete ITIN guide for non-resident business owners. Learn eligibility, application process, required documents, and tax benefits. We handle your ITIN application as Certifying Acceptance 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.
📌 Quick Summary
An ITIN is a tax processing number for individuals who need to file US taxes but aren't eligible for a Social Security Number. In 2022, 3.8 million ITIN holders contributed $14.4 billion in taxable income. We handle the entire ITIN application process for you, including document certification and IRS submission.
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.
⚠️ Important: An ITIN is for federal tax purposes only. It does NOT provide work authorization, immigration status, or eligibility for Social Security benefits or Earned Income Tax Credit.
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.
💼 Pro Tip: If you own a foreign entity operating in the US (like a single-member LLC), you'll need both an EIN for the business and an ITIN for your personal tax return reporting the business income.
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.
Fill out all sections of the IRS application form
Provide original or certified identity documents
Mail or submit through Certifying Acceptance Agent
Primary Document (Stand-Alone):
OR Two of These (if no passport):
Requirements:
⚠️ Important: Original documents submitted by mail will be returned within 60 days. To avoid mailing your passport, work with a Certifying Acceptance Agent (CAA) who can authenticate documents immediately.
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
We handle your entire ITIN application as a Certifying Acceptance Agent. You keep your original documents while we manage Form W-7, certification, and IRS submission. Our team ensures accuracy and resolves any issues directly with the IRS.
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:
✅ Available Tax Benefits:
❌ NOT Available to ITIN Holders:
⚠️ Note: CTC rules for ITIN holders are temporary (2018-2025). Absent new legislation, pre-2018 rules may return after 2025, potentially allowing children with ITINs to qualify for CTC.
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:
💼 Pro Tip: Start the ITIN renewal process at least 45 days before filing your tax return to avoid delays. If you only use your ITIN on information returns (like Form 1099), you don't need to renew it unless you're filing a tax return.
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:
⚠️ Important: Domestic reporting companies (US-formed entities) are currently exempt from BOI reporting as of March 26, 2025. Only foreign entities registered to do business in the US must file.
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.
We understand concerns about privacy. The ITIN remains primarily a tax compliance tool. We help you navigate the application process while ensuring you understand your rights and obligations under current regulations.
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:
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