What Is an ITIN and Do You Need One?

An ITIN (Individual Taxpayer Identification Number) is a 9-digit tax number the IRS gives to people who need to deal with U.S. taxes but can’t get a Social Security Number. It always starts with a 9. It does not give you permission to work in the U.S. or access to Social Security benefits. It exists for tax purposes.

Do you need one just because you have an LLC?

Usually not. This is the most common confusion. Your LLC uses its own tax number, the EIN, to open bank accounts and file its yearly Form 5472. Owning a U.S. LLC doesn’t automatically mean you need an ITIN.

When an ITIN makes sense

• You have to file a personal U.S. tax return, for example because your LLC has U.S. effectively connected income (Form 1040-NR).
• You receive U.S. income with tax withheld and want to claim a refund or a tax treaty benefit.
• A payment processor or platform asks for a personal tax number for the owner.
• You want to build U.S. credit: some U.S. banks and card issuers accept an ITIN to apply for personal credit cards, which helps you build a U.S. credit history over time.

Important: you can’t apply for an ITIN only to get a bank account or credit card. The IRS requires a valid tax reason on the application. That’s why it’s worth checking first whether you qualify and whether it’s worth it for you.

How to apply

You apply with Form W-7, usually sent together with a federal tax return, plus proof of identity (normally your passport). There are three ways:

1. Through a Certifying Acceptance Agent (CAA): the recommended option. A CAA verifies your passport, so you never mail the original, and prepares the W-7 and tax return together.
2. In person at an IRS office in the U.S.: your documents are returned the same day, but you have to travel and get an appointment.
3. By mail to the IRS: you mail your original passport (or a copy certified by the issuing agency; a notarized copy isn’t accepted) and wait roughly 7 to 14 weeks.

Common reasons for rejection

• Choosing the wrong reason code on Form W-7 (there are eight).
• Sending a notarized copy instead of a certified copy of your documents.
• Applying without the required tax return.

Keep it active

An ITIN expires if it isn’t used on a federal tax return for three consecutive years. If you’ll need it again, plan to renew it in time.

Need help?

VCG helps you assess whether you’d benefit from an ITIN. If you do, our accounting partner James Baker, CPA, a Certifying Acceptance Agent, can handle the application without you mailing your passport. If your budget is tight, ask us about working in exchange for equity, services or referrals.

Book a free consultation with Mauricio →

Sources: based on guidance from James Baker, CPA, VCG’s U.S. tax partner. This guide is general information, not legal or tax advice.