ITIN

An ITIN (Individual Taxpayer Identification Number) is a nine-digit ID issued by the US Internal Revenue Service to non-US residents who need to pay US taxes or comply with tax filing rules. If you're a European founder building a US LLC remotely, you'll likely need one.

What is an ITIN?

An ITIN is a US tax identification number for individuals who are not eligible for a Social Security Number (SSN). The IRS issues it to non-US citizens and non-residents who have a 'US tax filing obligation or other IRS requirement'.

In plain terms: it's proof to the US government that you exist for tax purposes, even if you don't live there and aren't a US citizen.

Who needs an ITIN?

You need an ITIN if you are:

• A non-US resident with US business income (like revenue from a US LLC)
• Filing a US tax return on rental income, investment gains, or other US-sourced earnings
• Opening a US business bank account and the bank requires tax documentation
• Building a US credit profile linked to a business or personal credit card

Most non-US founders creating a US LLC need an ITIN. You do not need a visa, green card, or SSN to get one.

How does it fit your US LLC journey?

Here's the typical flow:

1. You form a US LLC (usually in Wyoming for privacy and cost)
2. You apply for an EIN (Employer Identification Number) for the LLC
3. You apply for an ITIN as the LLC's owner
4. With ITIN + EIN in hand, you open a US business bank account and apply for business credit cards

The ITIN is your personal tax ID. The EIN is your business's tax ID. Banks and credit card companies ask for both to verify you and your company are real.

Example

Let's say you're a Dutch SaaS founder. You form a Wyoming LLC, get an EIN, and apply for an ITIN. A few weeks later, the IRS mails your ITIN to your address (anywhere in the world). You then provide that ITIN to Mercury or Wise when opening a US business bank account. They verify you with the IRS, and your account opens within days. Later, you apply for a US business credit card using the same ITIN. The card issuer runs a credit check using your ITIN and approves you, often with no credit history.

Key points

• No visa or residency required
• Issued by mail to any global address
• Valid for life (no expiry)
• Takes 4-6 weeks from application to receipt
• Free to apply
• Used for both personal tax filing and business bank/credit needs

What happens if you don't file taxes?

If you have a US LLC with an ITIN and EIN but no US-source income, US tax filing is generally not required. However, the LLC itself may need to file informational returns. If your LLC is taxed as a corporation (Form 1120) or if it's foreign-owned and single-member (which triggers Form 5472), filing is mandatory even with zero income. Missing these filings can result in penalties.

This is why working with a service like Founders Credit matters: they handle the structure, the applications, and ongoing compliance so you stay clear of penalties and maintain your US business standing.

How to apply

You apply for an ITIN using IRS Form W-7. You can submit it by mail or through an Acceptance Agent (a certified IRS partner). The process is straightforward and costs nothing. Founders Credit handles this as part of their setup service.

Frequently asked questions