Daring abroad with a new business and a new life indeed is possible for a chosen few. Moving to the US and living in Florida; starting up your own business and running in another country is quite a bold move.
You need to pay your taxes to the federal government but you don’t have a social security number (SSN).
You may want to expand and require urgent loans to finance the expansion.
What will you do? What options are there for individual immigrants not qualifying for an SSN in the US?
For all those people, the answer is an ITIN application form.
What is an ITIN?
An ITIN is an individual taxpayer identification number for foreigners not qualifying for a US social security number. Foreigners working and running their businesses in the United States get the chance to apply for loans and pay their taxes using the ITIN.
What are the benefits of an ITIN?
- Foreigner business owners can pay their taxes to the federal government.
- Small businesses become eligible for opening a bank account.
- Small businesses can build a credit history and become eligible to get loans.
How does ITIN work?
Let’s take a look at the case of Peter Rojas.
When Peter came to the US, he only had a dream of running his advertising agency. He took up the challenge and started a small advertisement firm in Florida.
Clients need him to run their advertising campaigns and bring their products to the market. He is happy, but there is that one thing he is unable to get out of his mind: The deadline for submitting his taxes was drawing ever nearer.
Peter is a legal immigrant. He has no SSN for tax submission and is worried about the legal status and the implications for failing to submit the taxes.
Besides, he wants to expand the business to take in more new clients. He needs to keep the company on the growth curve. However, he also needs financial assistance to necessitate a move to a business district. He knows he would never qualify for a loan and he is heartbroken.
Peter knows paying taxes is mandatory, and he shares his dilemma with a few friends. They advise him to apply for an ITIN. The identification number will help in paying the taxes. He can use it to open a business account and start building his business’ credit history.
Peter got his ITIN and was able to file his taxes.
Within six months, his business had become so famous, and he had ensured a reputable credit history. The company was now eligible for a small business loan that would cater to his expansion into the business district.
How can one get an ITIN?
Whoever needs to apply for an ITIN needs to follow these simple steps:
- Fill out the W-7 form from the IRS, which is essential in getting the ITIN. The form is also essential when renewing the ITIN after it expires.
- Complete the form and attach the tax files, unless you qualify for an exception. Attach your returns with your ITIN application if you can’t wait for the number.
- Verify your identity by using your original documents as an immigrant. It prevents cases of identity theft or falsification of documents.
- You can submit the application by mail or personally. Be sure to include proof of your identity, tax returns, and the W-7 form.
- Patiently wait to receive your ITIN. It takes six weeks to process but it might take longer than that. Your ITIN number has an expiry period of five years.
Entrepreneurship is for everyone
Foreigners have limited options when visiting different countries and even when hoping to open and run a business. Therefore, it is essential to pursue an ITIN if you decide to open any company in the US. It will prevent complications from arising in the future.
Get your ITIN and run your business stress-free for the next five years.
