Why the ITIN Exists
An Individual Taxpayer Identification Number lets people who aren't eligible for a Social Security Number still meet US tax filing obligations — it's issued by the IRS specifically for tax purposes, not as a general identity document or work authorization.
Who Can Apply, and For What
Non-resident founders with US tax filing requirements — such as an LLC member who needs to report income — are typical ITIN applicants. It's applied for through IRS Form W-7, usually alongside the tax return that first creates the filing requirement.
Key Insights
- 1An ITIN doesn't grant work authorization or immigration status — it exists purely for tax administration.
- 2It's different from an EIN: an ITIN identifies a person, an EIN identifies a business.
- 3Some banks and lenders accept an ITIN in place of an SSN for account opening or credit applications.
- 4ITINs can expire if unused for several consecutive tax years, so check status before assuming an old one is still valid.
