If you’re outside the U.S. but making money from American sources or running a business in the U.S., you might have heard the abbreviation ITIN. That means Individual Taxpayer Identification Number, a key element in fulfilling tax obligations in the U.S.

Lots of international business people, especially those who have a U.S. LLC, come across the ITIN when they need to file taxes, open a U.S. bank account, access payments through services like Stripe or PayPal, and follow IRS regulations.

For those applying from outside the country, the ITIN application can certainly feel a bit daunting.

That’s why we’ve created this guide to answer your questions about how to apply for the ITIN number, who needs it, and how Bizstartz can guide you through it seamlessly.

Understanding ITIN

A tax ID and number comes in the form of a series of 9 digits, issued by the IRS to U.S. Tax Payees. The ITIN is issued to those who need to meet tax obligations in the U.S. but do not qualify for a Social Security Number and must comply with U.S. tax regulations.

Format example: 9XX-XX-XXXX

An Individual Taxpayer Identification Number (ITIN) does not provide legal immigration status, authorization to work in the U.S., or Social Security benefits. It literally only assists the U.S. government in tax processing and reporting.

ITIN Important Features:

• Only the IRS issues them.
• They are used for tax filing, reporting, and compliance.
• They are needed for non-U.S. citizens, resident aliens, or foreign nationals with a U.S. tax filing requirement.
• They help ensure that everyone, regardless of immigration status, can pay taxes legally in the country.

For example, foreign business owners with U.S. tax obligations, such as an LLC, must file U.S. tax returns and will need an ITIN to be identified by the IRS for tax purposes.

Who Needs an ITIN?

You will need an ITIN if you are a foreign individual and you need to file or report taxes to the U.S., but you are not eligible for an SSN.

Some common scenarios where an ITIN is needed are:

1. Non-U.S. Residents Owning a U.S. LLC or Corporation

• If you have formed a U.S. LLC through Bizstartz, you need to file annual tax reports with the IRS.
• An ITIN allows you, as a non-resident owner, to file your personal tax return (Form 1040-NR) and account for your income share.

2. Nonresident Aliens Earning U.S. Income

If you are a non-resident alien earning income directly from the U.S. (this includes rent, royalties, dividends, and payments for services), you must obtain ITIN to report that income to the IRS.

3. The dependents and spouses of U.S. citizens or residents.

If a foreign spouse or dependent does not have an SSN and is listed on a U.S. tax return, they must apply for an ITIN.

4. Foreign investors or real estate owners.

Foreigners buying and selling properties in the U.S. must obtain an ITIN to pay and reclaim taxes under the Foreign Investment in Real Property Tax Act (FIRPTA).

5. Internationals students and researchers.

International students or researchers receiving taxable scholarships or grants from U.S. institutions will also need an ITIN.

6. Freelancers and Remote Workers Serving U.S. Clients

If you are a freelance professional based outside the U.S. and providing services to U.S. clients paid via U.S. payment systems, you may also need an ITIN for tax purposes.

In all, If you are a non-U.S. individual involved in income and tax matters here in the U.S., you will need an ITIN.

Why Is An ITIN Important?

An ITIN is more than just a tax number. It opens multiple avenues for non-U.S. residents to handle finances and conduct business. Here is a breakdown on its importance:

1. Assures IRS Tax Compliance

U.S. tax obligations require all income to be reported. You may not be in the U.S., but your business activities might create income tax obligations. An ITIN allows the non-resident to file tax returns and pay taxes to the U.S. government. This helps in avoiding IRS penalties and audits.

2. Assist in Opening A U.S. Bank Account.

Opening a business or personal account in U.S. banks and fintech platforms often requires an ITIN or SSN. Without one, it may be difficult to manage the finances of your LLC.

3. Enables Payment Processor Verification.

Payment processors such as Stripe, PayPal, and Amazon require tax identification numbers to verify your account. An ITIN allows for an unobstructed payment gateway.

4. Enables Claiming Tax Treaty Benefits.

An ITIN lets you claim benefits from tax treaties between the U.S. and your country. Tax treaties often prevent double taxation. Without an ITIN, you cannot avoid double taxation.

5. Refund and Tax Credit Support

You can only get a refund for overpaid taxes through your ITIN, and this also lets you access a few credits, including the Child Tax Credit if you qualify.

6. Compliance Support for LLCs

The ITIN is also a compliance requisite for foreign entrepreneurs starting a U.S. LLC as they will need to file an annual tax return and connect the owner to the company’s EIN.

Documents You Need to Get an ITIN

Prior to getting your ITIN, you should consolidate all the required documentation. Accurate and verifiable documentation will help reduce the chances of delays.

1. Form W-7 (IRS Application for ITIN)

This is the primary form you need to fill out to apply for an ITIN. It asks for:

• Your name, address, and birthdate
• Citizenship
• Type of US visa (if applicable)
• Reason for applying (the form has 9 reason codes)

2. Proof of Identity and Foreign Status

The IRS recognizes 13 different document types, but your passport remains the more trustworthy option as it can serve both identification and foreign status purposes.

If you choose not to provide your passport, you need to provide at least 2 more documents from the IRS-approved list, including:

• National ID card (photo, name, current address, date of birth, expiration date)
• U.S. visa
• Birth certificate
• Foreign driver’s license
• School records (for dependents under 18)

3. U.S. Federal Tax Return

As long as you do not qualify for an exception, the U.S. tax return (Form 1040, 1040-NR, or 1065) must be included with the ITIN application. This lets the IRS confirm that you actually need an ITIN.

4. Supporting Documents (if applicable)

These can be:

• LLC formation certificate or EIN confirmation letter
• U.S. business contracts or invoices
• Letter from a withholding agent
• Scholarship or grant documentation (for students)

How to Apply for an ITIN: Breakdown of the ITIN Application Process

Three different methods can be used to apply for an ITIN. Each has different advantages based on your location.

Option 1: Apply by Mail to the IRS

This is the most traditional method that most people still use.

Step 1. Complete Form W-7.

Make sure that your name, your reason code, your address, and the other fields are completely filled and correct.

Step 2. Attach Supporting Documents.

Send your passport (or certified copy of the passport) and your U.S. tax return.

Step 3. Mail your Application.

Send your complete application to:

U.S. IRS

ITIN Operations,

P.O. Box 149342,

Austin, TX 78714-9342,

USA

Step 4. Wait for Processing.

ITIN processing generally takes 8-12 weeks and can take longer during tax season.

Option 2: Apply Through a Certified Acceptance Agent (CAA)

Certified Acceptance Agents (CAA) are approved by the IRS to verify your documents and apply for the ITIN in your behalf.

Advantages of using a CAA:

• You don’t have to mail your original passport to the IRS.
• The CAA can validate your identity documents.
• The process is more secure and quicker.
• Processing is more efficient.
• Best suited for applicants living outside the U.S.

At Bizstartz, we work with IRS approved CAAs and assist clients apply for ITINs safely, without needing to send original documents overseas.

Option 3: Apply In Person at an IRS Taxpayer Assistance Center (TAC)

If you’re in the U.S., you can also book an appointment at a Taxpayer Assistance Center.

For this, you’ll need to bring:

• Your completed W-7
• Proof of identity and foreign status
• Your U.S. tax return

An IRS officer will inspect your documents and proceed with your ITIN request.

How Long Does It Take to Get an ITIN?

The processing time depends on your method of application:

Method	Estimated Processing Time
By Mail	8–12 weeks
Through CAA	4–6 weeks
In Person at TAC	3–6 weeks

Once your application is approved, you’ll get your ITIN letter directly from the IRS.

If something is missing or IRS documents do not match, the IRS will send you a letter for clarification.

Common Mistakes to Avoid When Applying for ITIN

1. Sending Your Original Passport When Certified Copies Are Required

Many applicants send original passports to avoid the delays of a certified CAA, which can result in losing or delaying the application.

2. Incorrect Reason Codes On Form W-7

There are 9 reason codes, and you’ll need to make sure to select the one that correctly applies to your situation (like “nonresident alien filing a U.S. tax return” or “owner of a U.S. LLC”).

3. Not Completing the Application Properly

If you leave any fields blank, don’t sign, or forget to send your tax return, the application is likely to be rejected.

4. Expired Documents

Every passport or ID must be valid and not expired at the time of submission.

5. Incorrect Mailing Address

Please confirm that your mailing address is accurate. The IRS sends your ITIN approval notice in the mail directly, so make sure your address can reliably receive international mail.

How Bizstartz Can Help You Get Your ITIN

Bizstartz simplify the ITIN application process for international entrepreneurs and international business owners.

We offer:

✅ Document preparation (Form W-7 and tax return)

✅ Document certification by our CAA partners

✅ Submission tracking and status updates

✅ Support for LLC owners and foreign individuals applying from overseas

Bizstartz ensures that your ITIN application meets the requirement so you can use it for tax filing, banking, or LLC compliance.

Our clients from over 70+ countries have successfully obtained their ITINs from us. They didn’t have to send us original passports or deal with confusing IRS paperwork.

Frequently Asked Questions (FAQ)

1. Can I request an ITIN if I do not have a U.S. tax return?

Yes, but only if you have an exception, such as being the owner of a U.S. LLC, and you are applying to open a bank account or tax treaty benefits. Bizstartz can help you determine what exception fits your situation.

2. Is my ITIN permanent?

Your ITIN will not expire, but if it is not used for three consecutive years it will go inactive. After this time, you can renew it with a simple application.

3. Can I use my ITIN instead of an SSN?

You can use your ITIN for tax purposes, but not for employment and social benefits.

4. What is the difference between an EIN and an ITIN?

• EIN (Employer Identification Number): Used for businesses (LLCs, corporations).
• ITIN (Individual Taxpayer Identification Number): Used for individuals, such as nonresident owners or partners.

5. Can Bizstartz apply for an ITIN on my behalf?

Yes. Bizstartz partners with IRS-certified acceptance agents to file your ITIN application properly and securely from any part of the world.

Final Thoughts

If you’re not a U.S. citizen and want to do business in the U.S., getting an ITIN is a huge first step. This helps you comply with IRS regulations, gain access to U.S. bank accounts, get paid by customers, and enhances the credibility of your business in the U.S.

If you’re not in the U.S., applying for an ITIN can be a long, complex process if you try to do it on your own. That’s why we offer the service to ensure the process is seamless, accurate, compliant, and gives you the peace of mind you deserve.

🚀 Start Your ITIN Application Today with Bizstartz

We assist non-U.S. residents in obtaining their ITIN and EIN and completing their business registration.

No confusion, no holdup, just expertly crafted service tailored to the needs of international businesspersons.

🌐 Check us out at www.bizstartz.com

📩 Or reach out to us so you can start your ITIN application.

Non-American residents interested in doing business & investing in the United States and meeting fiscal responsibilities there have to get an Individual Taxpayer Identification Number (ITIN) as one of the steps to fulfilling their objectives.

An ITIN is a tax processing number assigned by the Internal Revenue Service (IRS) to individuals who have a requirement to possess a U.S. taxpayer identification number and who do not have a Social Security Number (SSN).

The ITIN application process is perceived as simple and straightforward. However, there are things that most applicants dread ITIN processing time and elements that can slow down the processing. This ITIN Delay can be avoided when there is foresight and strategic planning to avoid the cumbersome processes.

This article will espresso the ITIN processing time, the specific delays that come with it, and practical steps to avoid needless delays in achieving ITIN.

What Is an ITIN and Who Needs It?

An Individual Taxpayer Identification Number ITIN is an IRS assigned 9 digit number which is a requirement by law and tax purposes. It is also used with Social Security Number as a requirement by law to file American taxes. It is also used to file federal tax returns, as well as the benefits of taxes, open bank accounts, and other related fiscal actions in the United States.

An ITIN is required by the following people.

• Non U.S. residents who work and pay taxes in the United States: An example involves freelancers providing services for American clientele from other countries. Such freelancers are ITIN holders.
• Non-resident aliens who hands United States tax returns: An example of a foreign national who does investments, rents and manages properties, and earning income due to foreigner’s wages, cultivates under ITIN.
• Dependents or spouses of U.S. citizens or resident aliens: For families claiming tax benefits or exemptions, dependents and spouses may require ITINs.
  
• Individuals claiming tax treaty benefits: Foreign nationals may be eligible for reduced tax rates under U.S. tax treaties but still require an ITIN to process the claim.

ITINs proves the fulfillment of the US tax obligations and other financial obligations such opening an LLC in the USA, a banking account in the USA, and obtaining some specialist licenses.

How Long Does It Take to Process an ITINs?

As a general estimation the IRS states it takes about ITIN applications take about. 7 to 11 weeks to be processed after the submission of the claim. This value is an estimation, real life values can be much different depending on the period and also the number of ITIN applications.

The Elements which Impact ITIN Processing Duration

• Peak Tax Season: An application received during January – April which interfaces to longer processing time because of excessive tax return submission is expected to encounter longer processing times. Reasonable time expectations must take these delays into account.
• Off Peak Period: It is predicted that the processing time during the months of May – December will be shorter, processing the application within 5 – 6 weeks.
• Completeness of Application: The IRS starts their clock on an application once they receive a completed application submission. Assumptions which document incomplete submissions, along with missing information, documents, or incorrect associations will experience a processing time clock to suspended origin and resetting.

The IRS does not accept incomplete submissions, and any deviation from any of the rules will almost always mean rejection at the first stage, which will also be justified by the primary processing time is calculated based on the listed documents.

Common Reasons for ITIN Processing Delays

In the case of ITIN applications, the common name is processing delays and the axis is common errors and lack of understanding instructions.

Many ITIN applications are delayed because of general errors and a lack of understanding on how to properly submit and complete the application. Recognizing these elements is essential to systematizing the delays assosciated with application processing.

1. Omission or Misguided Documentation

Particular documents are mandatory for the IRS so as to confirm your identity and foreign status. These are some common problems documents that are provided have:

• Providing passports that are expired and or invalid from an immigration/accounting standpoint
• Absence of vital supplementary documentation proof such as national identity cards, immigration visas, or a birth certificate
• The discrepancies that could possibly exist between the W-7 form and its accompanying documents

As an example, if the date of birth indicated on W-7 form for a passport does not correspond with a birth certificate, it is quite feasible that the concern is lacking regarding any application you provide to the IRS.

2. Errors on the Form W-7

An Application for an Individual Taxpayer Identification Number must be accompanied by Form W-7 where personal information along with the rationale for requesting the number is provided. The types of blunders that are frequently made in this regard include:

• Choosing the corresponding rationale for the application process for the course of action
• Incorrect mailing addresses
• For documents to be classified as form missing documents, the documents in question are not attached to other supporting documents

For this entire section, it is safe to say that Form W-7 does hold a certain degree of importance, as the IRS is known to W-7 is the form for which applications are assumed to hold. These applications for tax returns W-7 is the form for which applications are assumed to hold.

3. Administrative or Oversight Delays

The primary form of submission for processing ITIN applications is through the post mail, with the exclusion of instances when the IRS-acceptance agents are the ones handling the filing. Considerable problems in relation to the before mentioned could include.

• The postal service losing the mail elements of the application
• Incorrect addresses
• The period of time where the IRS receives a tax form that is unable to be classified as a complete set of attachments is known as the peak postal period.

For the entire previous section, the filing of a tax return that is classified as embodying a complete set of attachments is known as the entire application.

4. Federal Tax Return Not Submitted

In most cases, the ITIN has to be filed along with the Federal Tax Return. There are some exceptions, for example, individuals beneficiaries to a tax treaty, but not attaching a tax return when required is a common reason for delays.

5. Interruption Not Required

In the case of ITIN renewal, the renewal has to be done prior to the expiry of the ITIN. ITINs that are expired cannot be used for the filing of the tax return, and the process of renewal takes additional weeks if not done in the right manner.

How to Reduce the Processing Time for an ITIN

In order to alleviate any complications, there are measures an individual can take in order to mitigate the processing time for an ITIN.

Work with an IRS Acceptance Agent: They are able to assist with W-7 forms in addition to providing guidance on documents that need to be prepared and submitted with the W-7.

Ensure documents are accurate: all the pages of the W-7 form, the passport, visa, and other documents should conform to the same information.

Submit Early: If possible, submit your application well before peak tax season to avoid delays caused by high application volumes.

Use Trackable Mail: To confirm that your application will get to the IRS safely, post your application using a service that provides both tracking and delivery confirmation.

Follow Up: To speed up the process, keep a copy of the submitted documents as to enforce some accountability, and follow up with IRS if the waiting period surpasses the typical 11 weeks.

What to Do If Your ITIN Application Is Delayed

Even after following instructions, some applications may be delayed. Here’s what you can do.

Contact the IRS ITIN Operations: Call the IRS to inquire about your application and be ready with your W-7 mailing reference and mailing details.

Verify Document Submission: Double check that the correct and all required documents were sent and received by the IRS.

Respond Promptly to IRS Requests: To facilitate the process, if the IRS reaches out for further information, do not hesitate to provide it.

How Bizstartz can Help

When it comes to the application process for ITINs, the process can get very complicated, especially for foreign clients that have no prior knowledge to the US tax system. To boost the efficiency of the application, Bizstartz assists clients with the ITIN application process in a timely and cost-effective manner by:

• Applying for ITINs and submitting them in the correct format
• Collecting and authenticating necessary supporting documents
• Communication and Case Resolution with the IRS
• Avoiding Mistakes that Lead to Inefficiencies

With assistance provided by Bizstartz, foreign clients can obtain their ITIN swiftly and spend their time on more important matters, such as expanding their business or pursuing other financial activities in the US.

Conclusion

In ITIN, the client, especially a foreigner, is required for doing business, investments or taxation in the US. Many documents are reported to the IRS along with the application, processing time often is between 7 and 11 weeks.

As a client, for attachments that are sent, a lot of importance is given. Many attachments are sent to the client for mail, and cases are often incomplete.

When clients hire professional service, a lot of common mistakes are avoided and submitting tax returns is done way ahead of the due date.

With an ITIN, a person is able to file taxes and comply with the US tax rules and regulations.

Obtaining an ITIN is not just a legal requirement; it is a gateway to participating fully in the U.S. financial system, whether that involves opening bank accounts, forming a company, or filing taxes efficiently.

Opening a business in the United States and starting new business operations, or even remitting tax returns, may require an identification number for a foreign national whom the United States may need to work due to some business obligations or tax obligations they need to fulfil and hence, an Individual Taxpayer Identification Number ITIN (Instant Tax Identification Number) is extremely useful.

This document is designed to enlighten readers on the scope of ITIN, who requires it, as well as to underline the significance for foreign nationals, and the policies in place for obtaining an ITIN. Subsequently, we will be showcasing how our ITIN Business services will help you obtain your Business in the United States undisturbed.

An Individual Taxpayer Identification Number (ITIN) is some unique 9 digit identification number that an individual is awarded for various purposes and he/she will be awarded this number as per Internal Revenue Services (IRS) guidelines, and will be eligible only to those who have ITIN beneficiaries, hence does not need to possess a Social Security Number for use in identification.

What is an ITIN?

An ITIN is assigned exclusively to foreign individuals and is purely for identification and tax reporting purposes. It does not authorize the holder to legally undertake any work in the US or be a beneficiary to the Social Security system.

ITIN holders are non-U.S. tax residents and their immigration status ITIN is ITIN is immigration status neutral, meaning that it does not, in any circumstance, ITIN it can assist in the proof of legal stay within the borders of the United Stated.

An ITIN is assigned to non-US residents with the specific purpose of enabling the IRS to ensure payment of tax obligations and timely payment of taxes and obligations for non-residents not living in the United States. For business people or foreign investors, the ITIN is a cornerstone of lawful purposes and compliance.

Who Needs An ITIN?

An ITIN may be needed ICTAN for multiple and diverse purposes. The first step is to recognize and assess the specific issues relating to taxation that are needed.

1. U.S Non-residents with Obligations to File Tax Returns to the US.

There are various situations under which a person may be obliged to file a US tax return. These include engagement in US based self employment, consultancy work, earning rental income and receiving royalties.

All these sources of income, tax free as they may be, require instruction and reporting to the IRS. If you do not have a Social Security June, the IRS requires that you have an ITIN in order to process the return in an efficient manner and avoid problems with the taxation system.

2. Owners of LLCs or Corporations and Business Relations in the US

Foreign proprietors of a U.S. LLC or corporation may file to obtain an ITIN. This is the case when there is a necessity of

• Reporting business profits or losses
• Withholding Money Claimed Under the US Tax Relations
• Setting up a Business Saving account in the USA

Not residing in the United States does not exempt you from tax obligations that may require a Taxpayer Identification Number.

3. Dependents or Spouses of U.S. Citizens or Residents

“Foreign spouses or dependents ITIN. This is the case when there is a necessity of

Compliance dictates the need to file tax returns at the expense of losing benefits we’re entitled to, and claims that are considered unlawful and adopted in joint filing.

4. Foreign Investors in US Real Estate or Stocks

Foreign nationals who invest in US real estate and the stock market, or other financial entities, are required to possess an ITIN. Tax obligations arising from income generated from these investments need to be settled. Rental income arising from owning real estate in the US and capital gains from selling US securities, for instance, fall under the jurisdiction of the IRS ITIN filing.

5. Students, Researchers, and Visitors on Certain Visas

Scholars and foreign students carrying non-immigrant visas are oftentimes beneficiaries to American financial stipends, grants and/or scholarships. Even if they are unable to acquire an SSN, this category of foreign individuals are still mandated to submit tax returns and declare income, utilizing the ITIN. In this way, an individual still remains compliant without friction concerning the limitations of their visa.

Why is an ITIN Important for Foreigners?

Foreign nationals form a vital constituent to the economy and the ITIN helps them integrate into the American financial and business system. In addition to tax compliance, there are a number of associated benefits as well. These include:

American tax obligations: submitting income tax returns after the due date and incorrectly calculated returns leads to penalties and interest. An ITIN helps in fulfilling IRS obligations.

Access to Banking Services: In America, some financial institutions ask for an ITIN for the purpose of opening a business or personal account. Without fulfilling this requirement, the person will face numerous obstacles in obtaining American financial services

Business Activities: They are used to report business earnings, tax payments and other transactions, and also to meet compliance obligations of federal and state laws.

Claiming Advantages of a Tax Treaty: There are numerous tax treaties between America and other dozens of foreign countries, benefiting individuals by minimizing or eliminating dual taxation. An ITIN is a requirement for claiming these benefits.

Investments and Real Estate: Property ownership and real estate investments as well as stock transactions and investments in U.S. companies require ITINs in order to ensure proper compliance and reporting.

All in all, an ITIN makes it possible to conduct business, invest, and even reside in the United States in a compliant manner without an SSN.

How to Apply for ITIN

While the ITIN application process is simple, it is imperative to undertake the proper steps in order to guarantee delay or rejection is avoided for the application. Below is a simplified process for each applicant to follow.

Step 1: Complete IRS Form W-7

Completing IRS Form W-7 for application for IRS Individual Taxpayer Identification Number is essential. Primary details such as;

• Full Legal name.
• Foreign and U.S. Address.
• Date of Birth and Country of Citizenship.
• Reason for applying for ITIN.

The U.S. Tax Filing Situation is an essential component of the application. Responding accurately to the question is necessary as it is a vital piece of information.

Step 2: Prepare Supporting Documentation

You must provide documentation that proves both foreign status and identity. The IRS accepts:

• Passport: The most common document and able to demonstrate both identity and foreign status.
• National identification documents (includes name, photo, address, with date of birth).
• U.S. Department of State issued Visa.
• Government issued documents such as foreign birth certificates.

Notice the originals or certified copies issued by the agency are acceptable. Any photocopies which are not certified by the issuing agency will not be accepted.

Step 3: Application Submission

For each ITIN application there are three options available.

• Mail the application along with Form W-7 to the Internal Revenue Service (IRS) along with copies of certified or original documents and your federal tax return if applicable. Form W-7 along with your federal tax return will be mailed to the IRS ITIN Processing Center.
• Visit select IRS Taxpayer Assistance Centers (TAC) and submit your application personally. Certain IRS TACs allow personal application and document verification.
• Through Certified Acceptance Agents (CAA) your documents can be retained and not at risk of loss. Handing documents to the CAA will ensure maximal safety. This method is the most streamlined especially for people living abroad.

Step 4: Processing

The Internal Revenue Service (IRS) usually processes ITIN applications within 6 to 12 weeks. Any outstanding documents or lack of accuracy within the completed application may slow down the processing time. Any approved applications are mailed along with the relevant ITIN.

Common Mistakes to Avoid When Applying

An ITIN application on its own might appear straightforward, however, the potential for mistakes to arise, leading to complications, is an ever-present challenge. Such mistakes include but are not limited to:

• Missing documents, like certified photocopies, rather than documents required to be certified copies.
• Not providing U.S. tax returns where its provisions is invoked.
• Outdated documentation like passports, which should be current.
• False completion of the W-7 forms.
• Document routing slips addressed to the IRS but, in reality, intended for an entirely different address.

You may not be able to avoid the above mistakes as, quite contrary to popular belief, avoidance is not the best form of strategy. It is preparedness and due diligence to all documents that are essential.

How We at Bizstartz Can Assist You in Your ITIN Application

Our clients are mostly from foreign countries wishing to set up business in the United States and for them, the first step in the process is obtaining an ITIN.

Our services at this stage include:

• Providing you full assistance on every stage of Form W-7 that needs to be completed.
• Analyzing the documents for potential of delay and rejection and certified copies which prevents it.
• Your full application will go through an IRS certified acceptance agent CAA for submission.
• The more yes or no questions that you ask, will define the level of control that you have over the process.
• You will be guided on best practices on business, banking and tax matters in relation to the ITIN Africa, the other countries, and in Europe.

Working with Bizstartz eliminates the stressful and complex parts of the ITIN application process so you are able to concentrate on growing your business in the United States.

Concluding remarks

The process of doing business, investing, or even filing taxes in the United States for foreigners requires one to ITIN as more than just paperwork: it incorporates efficient, legal, as well as efficient operations. An ITIN resolves compliance with the American banking and investment obligations, while reporting business activities accurately.

As a non-resident, aspiring to grow your presence in the United States, you should make sure to need an ITIN on your next business trip. With the specialized assistance offered by Bizstartz, you will certainly fill the application in the correct form and cross all the regulatory boxes to do it without losing your tranquility.

For non-Americans looking to break into the U.S. market via a Limited Liability Company (LLC) framework, one critical step to take is registering for an ITIN (Individual Taxpayer Identification Number).

The ITIN, like the SSN is for employees, is specific to Americans, and is designed for people who need an Identification Number (ID) for tax purposes. However, ITIN is only assigned to people who will not qualify for a SSN.

Many non-residents globally have ITINs, and tend to overlook the opportunity that an ITIN presents. An ITIN is much more than a tax ID. Some notable advantages include taxes, access to banking, having payment processors, and even business expansion.

Your U.S. LLC will likely face challenges with compliance, operations, and even making a profit if the tax ID isn’t in order. For the vast majority of non-U.S. LLC owners, the challenge is not a lack of opportunity, but an absence of the right tax ID. Without an ITIN, your tax ID is ineligible, and there is not much else to be done.

In the following sections, we cover everything from exploring benefits of having an ITIN to address the numerous questions some may have. And ultimately, allow Bizstartz to take the stress of worrying about the process off your shoulders.

1. Obligations in Relation to U.S. Tax Laws

Owning a U.S LLC means that you’re liable to U.S. tax laws for revenues that stem from a U.S. source, regardless of your country of residency. The IRS mandates that any person with tax obligations in the U.S. must possess a Taxpayer Identification Number, for non-residents without SSN, this is the ITIN.

Not having an ITIN when required can lead to:

Under ITIN, one cannot:

• Accurately file your U.S. tax returns: ITIN precludes you from completing your tax filings, and the IRS will not process incomplete filings.
• Pay penalties for late or incomplete filing: you may not make profits, but failing to file can incur IRS penalties.
• Face losing LLC good standing: impacts ability to renew permits, and operate legally.
• Face ITIN penalties: loss of legal and financial LLC protections.

With an ITIN, one is compliant with legal regulations, and can adequately protect the LLC from unnecessary legal and financial risks.

2. Active LLC Tax Filing

Tax filing should not be treated as a yearly undertaking; rather as an active efficiency method for your LLC to maintain business standing, in the United States possessor non-residents. LLC owners that are non-residents are required to:

• Single member LLCs require the ITIN of the owner to file pertinent forms, most notably form 1040-NR and Schedule C for U.S. sourced income.
• To avoid rejection, multi-member LLCs need to list each member’s ITIN on the partnership return (Form 1065).

Without these numbers, the IRS submitting your return will either reject your return outright or send it back to you, significantly slowing the process and, in the worst-case scenario, incurring penalties.

Having your ITIN enables you to streamline:

• Timeliness and acceptance of filings.
• Accuracy in tax reporting.
• Providing better communications with the IRS.

This level of organization improves compliance and saves substantial hours of the most valuable time each year.

3. Establish a U.S. Business Bank Account

Establishing a U.S. business bank account is often the first real obstacle non-U.S. entrepreneurs face after creating an LLC. While a few banks offer the convenience of remote account openings, most require in-person verification. An ITIN can significantly ease this process.

With an ITIN, you are able to:

• Access a full range of banking products like checking and savings and even merchant accounts.
• Send and receive U.S. payments with no costly wire transfer fees.
• Benefit from FDIC protection on your business funds.
• Establish a reliable financial profile in the United States.

Many U.S. clients prefer dealing with companies that have a U.S. bank account as it indicates financial stability and professionalism. An ITIN helps you achieve that.

4. Gain Approval from Payment Processors

If you have an online business like an ecommerce store, you’ll likely need payment processors such as Stripe, PayPal, Square, or Shopify Payments. These companies often require either an SSN or ITIN to verify your identity and link your business account.

Without an ITIN:

• Your verification process can take weeks or months.
• Funds may be held in reserve until documentation is provided.
• Accounts can even be closed unexpectedly for lack of proper ID.

Having an ITIN speeds up approval, prevents payout delays, and ensures you can seamlessly process payments from customers which is vital for online revenue.

5. Claim Tax Treaty Benefits

The U.S. tax treaties for many countries to prevent double taxation. These treaties can:

• Reduce or eliminate withholding tax on specific income types like interest or dividends.
• Permit you to pay a lower tax rate than the standard 30%.

But to access these treaty benefits, you have to:

• Have a valid ITIN.
• Submit necessary IRS forms such as W-8BEN.

Without an ITIN, you may have to pay the maximum withholding rate which is unnecessary taxation if your country has a beneficial tax treaty with the U.S.

6. Establishing a U.S. Credit Profile

It may seem like building U.S. credit is impossible for the owners of foreign LLCs, but that is not the case. Some financial institutions use ITINs in place of SSNs to create credit profiles. With responsible banking and credit management, your LLC can over time:

• Obtain business credit cards.
• Qualify for small business loans or lines of credit.
• Establish a reliable reputation with business lenders.

Access to these funds can be critical for scaling operations, marketing, or managing unplanned costs.

7. Invest in U.S. Real Estate and Securities

To invest in U.S. real estate, stocks, or other assets, many non-U.S. LLC owners obtain ITINs. An ITIN is important for:

• Reporting rental or investment income to the IRS.
• Paying capital gains taxes on the sale of a property.
• Claiming tax refunds for excess withholding on investment income.

Without an ITIN, investments would be subject to higher taxes, complicated refunds, and a long process.

8. Avoid Higher Withholding Rates

Missing a tax ID number, foreign individuals or entities that receive payments sourced from the U.S, face a default 30% withholding tax.
With an ITIN, you are eligible to:

• Apply for a tax return for overclaimed tax withholding.
• Offset tax treaty provisions to reduce the withholding tax.
• Significantly lower the withholding tax accumulation over the life of your LLC.

This greatly benefits foreign businesses dealing with U.S. clientele or payment systems.

9. Speed Up IRS Processing

Filing without a tax ID often incurs tax ID application backlogs, which are the manual handling queue.
Having an ITIN means with:

• Less delays for businesses waiting to receive tax refunds.
• Reduced overall wait time or tax-related correspondence.
• More timely refund allocation, if eligible.

Less waiting time also translates to improved time management for tax-related matters, which increases focus on growing the business.

10. Future Business Expansion

Plans of further deepening presence in the U.S. through hiring, opening offices, or certain visa applications becomes smoother ITIN processes. It permits:

• Documented adherence to filing tax returns as a foreign business entity.
• Identified for applications and registrations.
• Proof of active business in the USA for over a year.

Obtaining an ITIN now is a minor investment that eliminates potential future complications for growth.

Why Bizstartz Can Help You Obtain An ITIN

We assist entrepreneurs from non-U.S. countries at Bizstartz with business setup and operations in the United States. We handle the ITIN applications for foreign LLC owners, with special attention to:

• Thorough step-by-step assistance on document assembly (passport, ownership documents, etc.).
• Filling out IRS Form W-7 accurately so there are no delays or rejections.
• Submission through correct channels to expedite the process.
• Filing and monitoring until the ITIN is issued, ensuring no steps are skipped.

From over 50 countries served, we know how to assist in business setup, overcoming borders and geography as a held back.

Conclusion

For LLC owners based outside the U.S., an ITIN is not just a number for tax purposes. It allows for better streamlined business operations, cost savings, and expanded business opportunities within the United States.

It makes tax compliance, opening a U.S. bank account, getting approvals for payment processors, and benefiting from tax treaties a lot easier and smoother when an ITIN is available.

At Bizstartz, we make the process of getting an ITIN simple, fast, and stress-free. Reach out to us so that we can help unlock the benefits for your business, and begin building your American business presence the right way.

Frequently Asked Questions (FAQs)

1. What is the time frame for obtaining ITIN?

Typically, 6-10 weeks from the time the IRS receives a complete application. However, there may be delays during busier times.

2. Is it possible to apply from outside the U.S.?

Yes, You don’t need to travel to the U.S as we apply on your behalf.

3. ITIN and SSN, are they the same?

No. SSN is issued to US citizens and in some cases, to foreign nationals on certain visas. ITIN is issued to non-citizens solely for tax reporting purposes and does not permit employment.

4. Does an LLC owner require an ITIN if their LLC has not generated any income?

Yes. An ITIN is important for documents that require filing or for opening a bank account—even without any income.

5. Does an ITIN expire?

Yes. An ITIN that has not been used for three years will expire and need to be renewed.

To comply with U.S. tax regulations, you may need an ITIN, or Individual Taxpayer Identification Number, if you are earning money in the United States but not eligible for a Social Security Number (SSN).

Complying legally and financially with United States laws starts with understanding the ITIN, regardless of whether you are a foreign entrepreneur, an investor, a student, or a dependent.

This comprehensive guide explains everything from what an ITIN Number is and who needs one to how to apply and avoid common pitfalls, as well as how Bizstartz can assist you with reputable professional guidance throughout the process.

What is an ITIN?

An Individual Taxpayer Identification Number, or ITIN, is a distinct nine-digit tax processing number allocated by the IRS (Internal Revenue Service).

It caters to individuals who lack a Social Security Number from the Social Security Administration, yet need to fulfill U.S. tax requirements.

The format of the number is like that of an SSN:

🔢 9XX-XX-XXXX

To provide unattached foreigners and individuals,who do not qualify under a certain criteria, to meet US tax filing requirements, the ITIN has been designated. Aside from the important role that it plays in the federal tax system, the ITIN is bound within these limits:

• It cannot function as a work permit.
• It does not guarantee immigration status.
• Civil rights as citizens of the government are not available to holders.

🔎 The IRS has clearly stated that the only function of the ITIN is as a federal form of tax reporting. Allowing income to be reported, taxes to be paid, and certain tax rebates to be claimed no matter what one’s condition is, is the work of ITIN.

👤 Who Needs an ITIN?

United States citizens, foreign nationals, or individuals conducting business outside the US are eligible for an ITIN if they have relations, legal or financial with the US. The following explanation may help you assess whether you need an ITIN.

📌 Common Scenarios Requiring an ITIN:

• Non-resident aliens who are obligated to pay taxes in the US as mandated within the tax-eligible boundaries of the IRS.
• US resident aliens (determined by physically present in USA for certain number of days) who are also tax filers.
• Spouses or dependents of U.S. citizens or resident aliens who are not eligible for SSNs.
• Spouses or dependents of non-resident visa holders (H-1B, F-1, L-1).
• Foreign investors, partners, or LLC members who derive income from the U.S or have a business entity like an LLC or LLP.
• Non-resident individuals deriving rental income, dividends, royalties, or interest from U.S. assets.
• Foreign students, scholars, or faculty members undertaking tax returns or tax treaty claims.
• Claiming tax treaty benefits for reducing tax liability resulting from simultaneous taxation.

🧾 Note: Without requiring physically visiting or living in the US, having certain connections such as an income classified under the US system may activate certain obligations including filing for taxes, which require an ITIN number.

What’s an ITIN and Why is it Important?

For non-residents, ITIN provides access to the United States taxation territory and enables compliance with legal obligations. This is the reason issuance of ITIN is vital:

💼 Primary Advantages of ITIN

Facilitates US Income Tax Return Filling

Having income from the US, foreign nationals signifies a legal obligation of reporting income from within the border and taxation on it. Form 1040, 1040NR and several other forms requires ITIN for submission.

Claim Tax Treaty Benefits

The U.S. has treaties with over sixty different countries. These treaties can diminish or withdraw taxes on dividends, interest, royalties, and other income. To claim tax treaty benefits, an ITIN is necessary.

Receive Tax Refunds

You may receive a refund if excess income tax was withheld. However, you must submit a tax return with an ITIN to get the refund.

Claim Tax Credits

Certain non-citizens are eligible to receive refundable tax credits such as:

• Child Tax Credit (CTC)
• American Opportunity Tax Credit (AOTC) for students
• Other education or dependent credits

Open U.S. Bank or Brokerage Accounts

Numerous financial institutions request an ITIN to permit foreign nationals to open checking, saving, or investment accounts, especially if personal identification numbers like SSN are absent.

Comply with Foreign-Owned LLC Tax Requirements

If you are a foreign owner of a U.S. LLC, you may be subject to Form 5472 and Form 1120 filing obligations. These filings are bound by the tax identification number mandate.

🚀 If you are starting a U.S. business, increasing your presence globally or investing in real estate or stocks in the US, acquiring an ITIN should be an essential part of your strategy.

🚫 Restrictions on the ITIN

While the ITIN is beneficial when paying taxes, it has strict limitations which delimit its usefulness. It is not an SSN, and does not offer any legal protections aside from tax eligibility.

⚠️ Key Limitations:

Limitation	Explanation
❌ Not valid for work	You cannot use an ITIN to work legally in the U.S. Employers may not accept it for employment purposes.
❌ No eligibility for benefits	ITIN holders cannot receive Social Security, Medicare, unemployment, or retirement benefits.
❌ No immigration status	Possessing an ITIN does not make you eligible for a visa, green card, or U.S. citizenship.
❌ Limited identification use	It’s not considered an official ID by most federal and state agencies.
⏳ Subject to expiration	ITINs must be used at least once every three years or they will expire. Older ITINs issued prior to 2013 are subject to automatic renewal cycles.

🛑 Many people incorrectly assume that the ITIN allows people to legally reside or work in the United states, but this is not true. The ITIN was created only for the purpose of identifying taxpayers.

🪪 Is the ITIN a Valid Form of Identification?

The ITIN is not accepted as a form of identification everywhere. It does serve some purpose in banking or other financial operations, but does not count as a form of government identification.

🔍 What the ITIN Cannot Be Used For:

• Gaining access to an airplane for international travel
• Acquiring a state issued driver’s license (from most states)
• Legally verifying age or identity
• Claiming public subsidized housing or healthcare services

ITINs may be accepted by some US banks for identity verification purposes. However, a passport, national ID, or visa is typically required in addition to the ITIN.

📝 How to Apply for an ITIN

This process requires precise preparation and proper documentation. Here are the steps in detail:

Step 1: Fill Out IRS Form W-7

To apply for an ITIN, you need form W-7. You will be required to:

• Choose the reason for applying
• Provide full name, date, place of birth, and country of citizenship
• Affix signature as the applicant (or parent/guardian, if child)

📌 Your information must match identically with your passport and any other documents submitted.

Step 2: Attach a U.S. Federal Tax Return.

An ITIN application must be accompanied by a tax return unless you are exempt. This may include:

• Form 1040 or 1040-NR
• Form 1120 with 5472 (for foreign-owned LLCs)
• Form 8233 (students/professors claiming tax treaty benefits)

Step 3: Submit Valid Identification Documents

You are required to submit original or certified copies of documents that confirm both:

• Your identity
• Your foreign status
  

Document	Proves Identity	Proves Foreign Status
Valid Passport (Standalone)	✅	✅
National ID Card (with photo)	✅	✅
Foreign Birth Certificate (for dependents)	✅	✅
Foreign Driver’s License	✅	❌
Civil Registry or Military ID	✅	✅

📢 Most common rejections happen due to expired documents, blurred scans, or copies that cannot be verified. Bizstartz reviews your application to make sure it is correct and complete before submission.

📮 Alternative Ways to Apply for an ITIN

Your original passport does not need to be mailed to the IRS. Multiple secure methods exist:

1. ✅ Engage a Certifying Acceptance Agent (CAA)

A CAA is an individual or business permitted by the IRS to:

• Review your original documents
• Confirm your identity
• File your ITIN application instead of you.

💡 Bizstartz collaborates with trusted CAAs, thus relieving you from the need to mail documents or visit the U.S.

2. 🏢 Go to an IRS Taxpayer Assistance Center (TAC)

If you are already located within the United States, you can apply by:

• Making an appointment at an IRS office
• Arriving with all completed documents and necessary forms.

This does not apply to the majority of non-residents residing abroad.

3. 🏛️ Go to a U.S. Embassy or Consulate

Some Embassies and Consulates provide ITIN related services, which include:

• Confirmation of documents
• Submission of your application to IRS.

Service and document availability differs by country.

🤝 How Bizstartz Helps with Your ITIN Application

We specialize in helping clients globally, especially entrepreneurs, investors applying for Bizstartz ITIN ITINs, and withdrawing it for their dependents.

⚙️ What We Provide:

✅ A tailored step-by-step form guideline for each user

✅ W-7 preparation to avert costly mistakes or rejection

✅ Secure communication with CAAs authorized by the IRS

✅ Submission not requiring physical attendance in the U.S.

✅ Comprehensive reporting and correspondence with the IRS on your behalf

We assist foreigners meet their tax obligations in the U.S. without complications, saving you time, stress, and unwanted hassle with the IRS.

🔍 Most Asked Questions (FAQs)

How long does it take to get an ITIN from you?

Standard IRS processing time ranges from six to twelve weeks based on their workload and accuracy of documents submitted. With Bizstartz, most clients see faster outcomes.

Can I legally work in the U.S ITIN?

No, this is a Tax Identification Number ITIN does not permit you to work or be employed in the United States.

Can a bank account be opened with an ITIN?

Some U.S. banks will accept ITINs as long as you provide further verification documents such as a passport. You will be guided to these institutions by Bizstartz.

Do ITINs expire?

Yes, if not used on a tax return for 3 years consecutively, it expires. ITINs issued before 2013 may need to renew even sooner.

Can I get an ITIN if I live outside the U.S.?

Absolutely! Bizstartz offers remote ITIN services worldwide, including form preparation, document verification, and direct IRS submission.

📢 Final Thoughts: Start Your ITIN Journey with Bizstartz

Obtaining an ITIN is a crucial part of navigating the U.S. tax system as a non-resident or foreign national. Whether you’re forming an LLC, investing in real estate, or simply earning U.S.-sourced income, the ITIN is the gateway to legal compliance and financial access.

✅ Why Choose Bizstartz?

Experienced in handling thousands of ITIN cases
Fully remote, fast, and secure processing
Transparent pricing and personalized guidance
No need to mail your passport or travel to the U.S.

👉 Ready to apply for your ITIN with expert help?

Contact Bizstartz today and let us take care of the entire process for you, accurately, securely, and globally.