How to Apply for an ITIN After Forming an LLC

Any foreign national living, working, and filing tax returns in the US needs an ITIN. The ITIN was introduced to allow foreign nationals, and migrants awaiting lawful status, to pay the correct taxes in the US. First, it allows you to fulfill your tax obligations and avoid penalties for failing to file a tax return. You will need to include your ITIN when filing your tax return or when filling out other forms that require a tax identification number. Obtaining an ITIN is essential for immigrants, foreign students, and other individuals who do not have an SSN but are required to file a tax return or receive certain tax-related benefits. This number is used by people who are not eligible for an SSN and have a U.S. tax filing or informational reporting requirement.

An EIN is designated for businesses to handle employee taxes, open business bank accounts, and fulfill other official financial obligations. The processing time for an ITIN renewal application is typically around 7 weeks. To avoid beginning the application process over, it is important to understand if and how you may need to renew your ITIN number. The costs here can vary depending on the service selected and the urgency of the application, but will generally not purchases journal format calculation and example exceed $100.

For federal agencies

As per U.S. law, a foreigner cannot have both an ITIN and an SSN. For more information, we also recommend reading Understanding IRS Taxpayer ID Numbers. You will also use an EIN to open a business bank account after forming an LLC in the U.S. This number is issued by the Social Security Administration (SSA) to identify a US Citizen, Permanent Resident, or Temporary Nonimmigrant Worker. We also recommend hiring an IRS Acceptance Agent to make sure you refile your ITIN Application correctly.

An ITIN is ONLY for U.S. taxes

Obtaining an Individual Taxpayer Identification Number (ITIN) is a crucial step in fulfilling your tax obligations in the United States. Please consult a licensed professional if you have legal or tax questions. To renew an ITIN, you will resubmit Form W-7 (along with the required documentation) and you will check off “Renew an Existing ITIN” in the upper right of the form.

3.) If you entered a U.S. address in #2, then enter the foreign (non-U.S.) address in the country where you permanently or normally live. For more information on U.S. tax treaties, please see Publication 901 and About Publication 901. You will need to hire an accountant who specializes in U.S. taxes for foreigners. For foreigners who formed an LLC in the U.S., the term “work” can often be confusing. If you are not sure if you have a U.S. tax filing requirement, you will need to speak with an accountant for help. ITINs are issued to both resident and nonresident aliens (“alien” is the legal term for foreigner), since the IRS does not get involved with immigration.

• Instead of using an SSN, you may be able to use an ITIN to fill out the W-9 form.
• All documents must be either originals or certified copies directly from the issuing agency.
• The Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS).
• You must attach a completed federal income tax return to your Form W-7.
• Individuals running businesses may need both an ITIN and an EIN if they are non-resident aliens needing to comply with tax obligations.

Renewal process for ITINs

By following the steps outlined in this guide and providing the necessary documentation, you can obtain an ITIN and fulfill your tax obligations in the United States. Second, it enables you to claim certain tax credits and deductions that can reduce your tax liability. The processing time for an ITIN intrinsic value of preferred stock application varies.

How long does the application process take?

Along with your U.S. federal income tax return and Form W-7, you must also submit documentation that proves your identity and your foreign status in the U.S. An ITIN is a tax processing number issued by the IRS to individuals who are not eligible for a Social Security number (SSN) but still need to file a U.S. federal tax return. When you file your federal tax return, you will enter your ITIN in the same space where the form asks for a Social Security number.

An EIN is issued by the IRS to businesses for tax reporting requirements. For that reason, while you can apply for an ITIN yourself, we recommend getting help from an accountant (that is an IRS Acceptance Agent) since they specialize in helping foreigners. 6c.) If you have a U.S. nonimmigrant visa, enter that information here. 6b.) If you have a tax identification number in the country where you live, then enter that here. If you permanently moved to the U.S. and you no longer have a foreign address, enter only the country where you last lived. If the address in #3 will be the same as a foreign address you listed in #2, then enter “SAME” on both lines in #3.

If your ITIN was not used on a U.S. federal tax return for at least one year in the tax years 2014, 2015, or 2016, then your ITIN expired on December 31st of 2017. If you are eligible for an SSN and have already submitted an application for an SSN (and have not heard back yet), do not apply for an ITIN. (You’ll need to look under the section titled “What documents are acceptable as proof of identity and foreign status?“)

Filing in person

6d.) Select the type of documentation you are using to prove your identity and enter those details in this section. Please see the Form W-7 instructions for how to enter these details. If you do not have a tax identification number from your country, then you can leave this blank. If you have citizenship in two countries (dual citizenship), then enter both countries with a “/” in between the country names.

Send money online

Instead of mailing your ITIN Application to the Texas address above, you can also file your application in person at an IRS Taxpayer Assistance Center (TAC). If you are the person applying for the ITIN (your name is in #1), then you should sign the form, enter the date, and your phone number. Currently, there are 13 different documents that the IRS will accept for proof of identity and proof of foreign status. If you are a foreigner and you formed an LLC in the U.S., you will need to speak with an accountant to determine if you owe U.S. taxes. Yes, ITINs expire if not used on a U.S. federal tax return at least once in three consecutive years. This publication is a valuable resource for anyone who is not eligible for a Social Security number (SSN) but still has tax filing obligations in the United States.

Instead, when hiring an accountant, they can certify your passport for you and send that in along with your ITIN Application (instead of using your original passport). If you don’t certify your passport, you’ll need to send the IRS your original passport. Another example of how hiring an accountant (that is an IRS Acceptance Agent) can help is regarding your passport. If you make any mistakes, your ITIN application will be rejected. Getting a the difference between b andc forms certified copy of your passport is a lot better than sending in your original and having to wait multiple weeks before you get it back.

• 6g.) If you selected box “f” in the “Reason you’re submitting Form W-7” section, then you must enter the applicable college, university, or company.
• Along with Form W-7, you must generally include (1) your federal income tax return for that year, and (2) a document or set of documents that prove both your identity and foreign nationality status.
• There will also be a phone number on the letter so you can call the IRS for more information.
• This number is issued by the Social Security Administration (SSA) to identify a US Citizen, Permanent Resident, or Temporary Nonimmigrant Worker.

The IRS will then use your new SSN and enter that into all your past records and then they will cancel your ITIN. “I have been assigned a Social Security Number (SSN) and I would like my tax records combined. You can list all the information at the top of the form. Your application for an ITIN will be rejected if you do.

We recommend working with an accountant that is an IRS Acceptance Agent as they will be able to help you obtain a certified copy of your passport. The IRS wants either your original passport or a certified copy of your passport. Using a passport is the easiest and most common choice. To see which documents can be used for which purpose, please see the IRS instructions for Form W-7 and look under the section titled “Supporting Documentation Requirements” (see #3).

Access your tax information with an IRS account.

However, if you apply in person, you can get your ITIN the same day. Generally, it takes four to six weeks, and up to 11 weeks if there is a backlog, to get an ITIN if you apply by mail. The time it takes to get an ITIN varies depending on the method of application. The ITIN is used solely for tax purposes, and it is not intended to serve any other purpose. In this guide, we will go through the steps to obtain an ITIN, the required documents, and how it can benefit you.

Expired ITINs may continue to be used on information returns. If your ITIN is only used on information returns that report payments you receive, like Form 1099, you don’t need to renew it. An ITIN is a 9-digit number issued by the U.S. You can also use this form to renew an existing ITIN that is expiring or that has already expired. If you filed outside of that time frame, allow for 7 weeks before receiving a response. If you filed during peak processing periods (January 15 – April 30) allow for 9 – 11 weeks to receive your response.

Applying for your own ITIN

Individual taxpayer identification number (ITIN)How to apply for an ITINHow to renew an ITINITIN supporting documentsITIN application frequently asked questions If your individual taxpayer identification number (ITIN) expired, you must renew the ITIN if it will be included on a federal tax return. All persons who receive an income, regardless of their immigration status, must file taxes depending on their filing status and income level. An ITIN is used to file a U.S. income tax return (or submit information to the IRS), and cannot be used for anything else. Use Form W-7 to apply for an IRS individual taxpayer identification number (ITIN).

An ITIN is assigned to individuals needing to comply with U.S. tax laws without qualifying for an SSN, which is issued to U.S. citizens and qualifying residents for benefits and earnings tracking. The ITIN facilitates tax payment and filing for those without SSN eligibility. ITIN holders with these numbers are required to renew their ITINs to avoid tax return processing delays.