📝 What Is an ITIN?

An ITIN (Individual Taxpayer Identification Number) is a tax processing number issued by the Internal Revenue Service (IRS) in the United States. It is designed for individuals who are not eligible for a Social Security Number (SSN) but need to comply with U.S. tax laws.

The ITIN is a 9-digit number that starts with “9” and looks like this: 9XX-XX-XXXX. It is not a work permit, and it does not give you legal residency or immigration benefits — it is strictly a tax ID used for identification in the U.S. tax system.

🎯 Who Needs an ITIN?

You need an ITIN if you:

• Are a non-U.S. resident and own a U.S. LLC or Corporation

• Need to file a personal U.S. tax return (Form 1040-NR)

• Are a partner in a U.S. company and must report your income

• Want to apply for tax treaty benefits (to avoid double taxation)

• Use platforms like Stripe Atlas, Amazon, or PayPal that request a U.S. tax ID

• Are investing in U.S. real estate or earning dividends, royalties, or interest from

U.S. sources

• Need to open a U.S. business bank account that requires a tax ID in your name (as a person)

✅ Key Benefits of Getting an ITIN

• Allows you to file U.S. taxes legally and on time

• Makes you eligible to claim tax treaty exemptions or refunds

• Helps you stay compliant with U.S. business and financial regulations• Enables access to platforms that require tax reporting (Amazon, Stripe, etc.)

• Gives legitimacy to your business in the eyes of U.S. authorities

• Required by some U.S. banks if they ask for a personal tax ID in addition to your company EIN

🛠 Why ITIN Matters for Non-U.S. Entrepreneurs

If you’re running a U.S. business as a non-resident, you’re often required to file a Form 1040-NR, especially if your LLC is a single-member entity. The IRS needs a way to track your income — and the ITIN is how they do it.

Platforms like Amazon, Etsy, and Upwork may also ask for a tax ID to process your payments or verify your account. Without an ITIN, they may withhold up to 30% of your income or block payouts.

In other words: No ITIN = No full control over your business or finances in the U.S.

📄 What Documents Are Required to Get an ITIN?

• A valid, unexpired passport (required for most applicants)
• Proof of foreign status (included in your passport)
• Reason for needing an ITIN (we help you write this)
• Company formation documents (LLC Articles, EIN letter)
• Signed Form W-7 (we prepare this for you)
• Optional: IRS letter requesting the ITIN (if available)

If you’re applying through a Certified Acceptance Agent (CAA), you won’t need to mail your original passport — just certified copies. INCHUB provides this option.

⚠ Common ITIN Mistakes & Rejections

• Submitting an incomplete or outdated Form W-7

• Not providing a valid reason for needing the ITIN

• Sending a blurry or expired passport copy• Applying without first forming a company (no tax basis)

• Not using a Certified Acceptance Agent (higher risk of rejection)

ITIN applications are carefully reviewed by the IRS. One small error can result in months of delay or full rejection, and in many cases, you’ll have to start over from scratch.

🚫 What Happens If You Don’t Get an ITIN (But Need One)?

• You won’t be able to file taxes properly as a foreign business owner

• You may be subject to backup withholding (30% of your payments) on platforms like Amazon or PayPal

• You may get denied by Stripe Atlas or limited access to financial tools

• Your company may be flagged as non-compliant

• You may lose eligibility for tax treaties or refunds

🔍 Real-World Use Cases

Case 1 – Amazon Seller:

Sarah from Jordan owns a U.S. LLC and sells on Amazon. Amazon requested her tax info and

gave her a W-8BEN form. With INCHUB’s help, she applied for an ITIN and avoided the 30%

withholding tax, saving over $2,000 annually.

Case 2 – Stripe Atlas User:

Mehdi from Morocco used Stripe Atlas to launch a startup. Stripe asked for an ITIN before completing account verification. Without it, his funds were frozen. He got his ITIN through INCHUB within 7 weeks and resumed full access.

🕒 When Should You Apply for an ITIN?

• After forming your U.S. company and receiving your EIN

• Before the tax filing season (April 15) if you need to submit 1040-NR

• As soon as Stripe, Amazon, or PayPal ask for a tax ID

• Immediately if you’re applying for tax treaty benefits

💡 Expert Tip from INCHUB

“An ITIN isn’t optional if your LLC is taxed as a disregarded entity. It’s how the IRS connects you personally to your business — and how you avoid unnecessary taxes and platform issues.”