Building a US business from outside the United States

Guide · 1 min read

ITIN for founders: when you need one and how to get it

You almost certainly do not need one to run your company. Here is the short list of situations where you actually do.

The short answer

An ITIN is a US tax identification number for individuals with a US filing obligation who are not eligible for a Social Security Number. It is needed for personal filings such as Form 1040-NR, not for owning an LLC, obtaining an EIN, or opening most business bank accounts.

When you genuinely need one

  • You must file a personal US return — typically Form 1040-NR because you have US-source income requiring it.
  • You are claiming a tax treaty benefit in your own name.
  • You are a partner in a US partnership subject to withholding on your allocated share.
  • A specific institution requires it for a personal account — business accounts generally do not.

How the application works

You file Form W-7 with proof of identity and foreign status, and generally attach it to the tax return that creates the filing requirement. The IRS wants certified copies rather than plain photocopies, which is the part that trips people up — a Certifying Acceptance Agent can handle the certification.

Frequently asked questions

Do I need an ITIN to own a US LLC?
No. There is no requirement for an individual tax number to own a US entity. The company's identifier is its EIN, and the EIN can be obtained without an SSN or ITIN by filing Form SS-4 on paper.
How long does an ITIN take?
Considerably longer than an EIN, and the application requires certified identity documentation. That difference in timing is exactly why applying for one unnecessarily is costly — it blocks nothing that matters while it processes, but people wait for it anyway.
Does an ITIN let me work in the US?
No. An ITIN is purely for tax administration. It confers no immigration status, no work authorisation, and no eligibility for Social Security benefits.

Sources

Last reviewed . Verify against the primary source before acting.

Founders 8 does not provide tax advice. Tax residency depends on facts and rules specific to each jurisdiction — review your position with a qualified adviser.

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