By Jake Lawson, LLC Formation Strategist
So you’re a non-U.S. resident who formed an LLC in America—congratulations! Now comes the fun part: dealing with U.S. tax requirements.
If you’re reading this, you’ve probably discovered that having a U.S. LLC means filing U.S. tax returns, and filing U.S. tax returns requires either a Social Security Number (which you can’t get) or an Individual Taxpayer Identification Number (ITIN).
In my 15+ years helping international entrepreneurs navigate U.S. business formation, I’ve guided hundreds of non-U.S. residents through the ITIN process. It’s not complicated, but the IRS paperwork can be intimidating if you don’t know what you’re doing.
Here’s everything you need to know about getting your ITIN, based on real experience helping clients from 40+ countries.
What Exactly is an ITIN? (And What It’s NOT)
An Individual Taxpayer Identification Number (ITIN) is a nine-digit tax processing number issued by the IRS. It looks just like a Social Security Number (XXX-XX-XXXX format) but starts with the number 9.
What an ITIN allows you to do:
- File U.S. tax returns
- Meet U.S. tax obligations for your LLC
- Open certain types of bank accounts
- Comply with U.S. reporting requirements
What an ITIN does NOT allow you to do:
- Work in the United States as an employee
- Claim Social Security benefits
- Get legal immigration status
- Qualify for the Earned Income Tax Credit
- Sponsor relatives for immigration
Jake’s reality check: I’ve had clients confuse ITIN eligibility with work authorization. Let me be crystal clear: forming a U.S. LLC and getting an ITIN does not give you the right to work in the United States. You’re the owner of your business, not an employee of it.
Do You Actually Need an ITIN?
Not every non-U.S. resident with a U.S. LLC needs an ITIN. Whether you need one depends on your specific tax situation.
You likely need an ITIN if:
- Your LLC generates income in the United States
- You’re required to file a U.S. tax return
- You have U.S. reporting obligations
- You’re married to a U.S. citizen/resident and filing jointly
- You’re claiming treaty benefits
Common scenarios from my client base:
- E-commerce sellers: Amazon FBA, Shopify stores, dropshipping
- Digital service providers: Software, consulting, online courses
- Real estate investors: Rental properties, flipping houses
- Content creators: YouTube, affiliate marketing, sponsorships
Jake’s honest advice: Tax requirements for non-U.S. residents are complex and highly situational. Before applying for an ITIN, talk to a qualified accountant who specializes in international tax. Don’t guess—get professional guidance.
The ITIN Application Process: What You Actually Need
Getting an ITIN requires submitting three things together:
- Form W-7 (ITIN application)
- U.S. federal tax return (usually Form 1040NR)
- Identity and foreign status documentation
Critical point: You typically can’t get an ITIN without filing a tax return. The IRS wants to see an actual tax obligation, not just a desire to have a tax number.
Document #1: Form W-7 (The Application)
This is your formal ITIN application. The form is straightforward, but small mistakes lead to rejections.
Key sections that trip people up:
Application Type: Check “Apply for a new ITIN” (first box)
Reason for submission: This is crucial. Common reasons for LLC owners:
- Box (a): Filing a U.S. tax return
- Box (h): Other (specify your reason)
Name fields: Enter your name exactly as it appears on your passport. Any variation can cause delays.
Address requirements:
- Your current mailing address (can be outside the U.S.)
- Your foreign address (if different from mailing address)
Birth information: Use MM/DD/YYYY format (American style), not DD/MM/YYYY
Document #2: U.S. Federal Tax Return
This is where most people need professional help. As a non-U.S. resident LLC owner, you’ll likely file Form 1040NR (Nonresident Alien Income Tax Return).
Why you need an accountant for this:
- Tax rules differ based on your country’s tax treaty with the U.S.
- Income classification affects your tax obligations
- State tax requirements vary significantly
- Deductions and credits have special rules for non-residents
My recommendation: Find an accountant who is an IRS Acceptance Agent. They can handle both your tax return and ITIN application simultaneously.
Document #3: Identity and Foreign Status Proof
The IRS accepts 13 different documents, but your passport is by far the easiest option. It proves both your identity and foreign status with one document.
Document options include:
- Foreign passport (most common)
- National identification card
- Foreign driver’s license
- U.S. driver’s license (if you have one)
- Various visas and immigration documents
Original vs. certified copies: The IRS wants original documents or certified copies. I strongly recommend certified copies so you don’t have to mail your actual passport and wait weeks to get it back.
How to get certified copies: IRS Acceptance Agents can certify your documents. This is another reason to work with a qualified accountant.
Step-by-Step ITIN Application Process
Step 1: Determine If You Need an ITIN
Work with an international tax accountant to confirm your filing requirements. Don’t skip this step.
Step 2: Prepare Your Tax Return
Your accountant will prepare Form 1040NR or the appropriate return for your situation.
Step 3: Complete Form W-7
Fill out the ITIN application carefully. Double-check every detail.
Step 4: Gather Supporting Documents
Get certified copies of your passport or other qualifying identification.
Step 5: Submit Everything Together
Mail all documents to:
Internal Revenue Service
ITIN Operation
P.O. Box 149342
Austin, Texas 78714-9342
Alternative: Visit an IRS Taxpayer Assistance Center (TAC) in person if you’re in the United States.
Step 6: Wait for Processing
- Peak season (Jan 1 – Apr 30): 9-12 weeks
- Off-season (May 1 – Dec 31): 7-8 weeks
What Happens After You Apply
The IRS will send you one of several letters:
CP-565A: ITIN Approved ✅
This is what you want. You’ll receive your ITIN and can start using it immediately for tax purposes.
CP-567: Application Rejected ❌
Something was wrong with your application. The letter explains why. Common reasons:
- Incomplete or incorrect forms
- Missing or invalid documentation
- Tax return errors
CP-566: More Information Needed ⚠️
Your application was incomplete. Send the requested information promptly.
Letter 5872: Documents Returned
The IRS is returning your original documents. This usually happens along with your ITIN approval.
Jake’s Pro Tips for ITIN Success
After helping hundreds of international clients, here are my insider strategies:
Tip #1: Use an IRS Acceptance Agent
Why this matters: Acceptance Agents are authorized to certify your documents and review your application before submission. This dramatically reduces rejection rates.
Find one here: IRS Acceptance Agent Directory
Tip #2: Don’t Rush the Process
Common mistake: Trying to get an ITIN immediately after forming your LLC, before understanding your actual tax obligations.
Better approach: Wait until you have real income or a confirmed filing requirement.
Tip #3: Keep Excellent Records
Make copies of everything before mailing. I’ve seen packages lost in transit—don’t let that derail your application.
Tip #4: Use the Right Mailing Address
Don’t use the address from Form 1040 instructions. Use the specific ITIN operation address in Austin, Texas.
Tip #5: Time Your Application Strategically
Apply during off-peak season (May-December) for faster processing if possible.
Common ITIN Mistakes That Cause Rejections
Mistake #1: Inconsistent Names
Problem: Name on Form W-7 doesn’t match passport exactly
Solution: Use your full legal name as shown on identification
Mistake #2: Wrong Date Format
Problem: Using DD/MM/YYYY instead of MM/DD/YYYY
Solution: Always use American date format (month first)
Mistake #3: Missing Tax Return
Problem: Applying for ITIN without a qualifying tax filing requirement
Solution: Work with an accountant to determine if you actually need to file
Mistake #4: Poor Quality Document Copies
Problem: Unclear or incomplete document copies
Solution: Use certified copies from an Acceptance Agent
Mistake #5: Wrong Reason Code
Problem: Selecting the wrong reason on Form W-7
Solution: Get professional guidance on which box to check
Special Situations and Edge Cases
If You Already Applied for an SSN
Never apply for both. If you’ve applied for a Social Security Number and haven’t heard back, wait. Applying for an ITIN while an SSN application is pending will result in rejection.
If You Later Get an SSN
Once you receive a Social Security Number, you must stop using your ITIN and notify the IRS to merge your tax records.
ITIN Renewals
ITINs can expire if not used for several years. Check the middle digits of your ITIN—certain number ranges expired in 2017 and needed renewal.
Dependent ITINs
If you’re claiming dependents on your U.S. tax return, they may also need ITINs. The process is similar but has additional requirements.
How Much Does This Actually Cost?
IRS fees: $0 (ITINs are free)
Typical additional costs:
- Accountant fees: $500-2,000+ (varies by complexity)
- Certified document copies: $25-100
- Express mail/tracking: $25-50
- Potential travel to Acceptance Agent: Varies
Total realistic budget: $600-2,500 depending on your situation and location
Countries with Special Considerations
Based on my client experience, certain countries have unique factors:
Canada: Tax treaty benefits may apply, affecting your filing requirements
UK: Brexit created some changes in tax treaty benefits
India: Large volume of applicants sometimes leads to additional scrutiny
China: Document certification can be more complex
Germany: Strong tax treaty benefits for many types of income
Jake’s note: These are generalizations. Every situation is unique, and tax treaties change. Always get current advice from a qualified professional.
Red Flags That Signal Problems
Watch out for these warning signs:
- Promises of “guaranteed” ITIN approval: No one can guarantee IRS approval
- Offers to get ITINs without tax returns: Usually not legitimate
- Extremely low fees: Quality tax preparation costs money
- Pressure to apply immediately: Take time to understand your actual needs
When You DON’T Need an ITIN
You may not need an ITIN if:
- Your LLC has no U.S. income
- You have no U.S. filing requirements
- You’re eligible for and can obtain an SSN
- You qualify for certain treaty exemptions
Forms that don’t require ITINs:
- Form 4868 (Extension request)
- Form 1040-ES (Estimated tax payments)
- Form 1040-ES(NR) (Nonresident estimated taxes)
For these forms, write “ITIN to be requested” in the tax ID field.
My Recommended ITIN Timeline
Month 1: Consult with international tax accountant
Month 2: Prepare tax return and Form W-7
Month 3: Submit application with certified documents
Months 4-5: Wait for processing
Month 6: Receive ITIN and begin using for ongoing tax obligations
Reality check: This process takes patience. Don’t expect to get your ITIN in a few weeks.
The Bottom Line on ITINs for LLC Owners
Here’s what 15+ years of helping international entrepreneurs has taught me: ITINs are necessary for most non-U.S. residents with U.S. LLCs, but the application process doesn’t have to be painful.
My honest recommendations:
- Work with a qualified accountant who specializes in international tax
- Don’t rush the process—understand your actual filing requirements first
- Use certified document copies to avoid mailing originals
- Budget for professional help—this isn’t the place to cut corners
- Keep excellent records of everything you submit
The ITIN process has a learning curve, but it’s completely manageable with proper guidance. I’ve seen clients from every continent successfully navigate this system.
Most importantly: Don’t let ITIN requirements scare you away from forming a U.S. LLC. The benefits typically far outweigh the administrative hassles, especially with proper planning.
Need help with your international LLC strategy? I’ve tested every major formation service and worked with accountants worldwide. For international clients, I recommend Northwest Registered Agent for LLC formation and ongoing support.
For ITIN and tax assistance, find an IRS Acceptance Agent in your area or consider working with a U.S.-based firm that specializes in international clients.
Jake Lawson is an LLC formation strategist who has guided over 1,200 entrepreneurs through U.S. business formation, including 300+ international clients from 40+ countries. He provides unbiased advice and tested recommendations at llciyo.com.