ITIN (Individual Taxpayer Identification Number)
Personal US tax ID for non-resident individuals who must file US tax returns. Distinct from an SSN or EIN.
Definition
An ITIN is a 9-digit personal tax identifier issued by the IRS to non-resident individuals who must file US tax returns (Form 1040-NR) but are not eligible for an SSN. Applied for via IRS Form W-7 with required identification documentation. Format mirrors SSN but starts with 9.
Context
Most non-resident LLC owners need the EIN (LLC tax ID) but never need an ITIN. An ITIN is needed only if the individual personally must file a US tax return showing US-source effectively-connected income. For most non-resident-only Delaware LLCs with no US physical presence, no ITIN is needed.
Example
A Pakistani founder owns a Delaware LLC that earns US-source service income. The LLC files Form 5472 + pro forma Form 1120 (handled by a CPA). The founder personally has no US tax filing obligation and therefore does not need an ITIN.
Common pitfalls
- Some founders apply for ITIN unnecessarily, adding 6-12 weeks of waiting and an unnecessary CAA fee.
- If you do need an ITIN, a Certifying Acceptance Agent (CAA) can certify your passport rather than mailing the original to the IRS.
- Confusing ITIN with EIN. They serve different purposes.