Many entrepreneurs aspire to start a small business in a country outside of their own. However, to start a business in the United States, you typically need a social security number (SSN) to get started.
An individual taxpayer identification number (ITIN) is an alternative to an SSN for foreign entrepreneurs who may not meet the requirements to get an SSN. An ITIN will allow you to file income tax returns, start a business in the US, and apply for small business financing.
You can learn more about ITIN in this Camino Financial post.
Let’s take a look at who needs to fill out an ITIN application and how it can help you access the funding you need for your small business.
What is an ITIN?
An ITIN is a tax identification number that foreigners who can’t get an SSN can use to file income tax returns in the United States.
Like an SSN, and ITIN is a nine-digit account number that you can request from the IRS to comply with federal and state tax regulations.
Since both residents and immigrants are required to comply with tax laws, ITINs are issued regardless of your current immigration status.
If you’re a foreign entrepreneur who is concerned that you may not meet the requirements to start a small business or file your taxes, an ITIN will ensure that you can pursue your dreams without violating state or federal regulations.
How to Apply for an ITIN
To start a business in the United States as a foreign entrepreneur, you need an ITIN.
Fortunately, the ITIN application process is fairly straightforward. There are just a few steps you need to complete to get yours, including:
- Fill out form W-7
- Attach your tax return to your application
- Verify your identity
- Submit your application
- Wait to receive your ITIN
Once you receive your ITIN, you can:
- Pay taxes
- Start your small business
- Open a bank account
- Start building your credit history
- Apply for financing
For these reasons, it is incredibly important for foreign entrepreneurs to complete their ITIN application so that they can start pursuing new business opportunities as quickly as possible.
What Else Can I Use an ITIN For?
One of the biggest benefits of having an ITIN is that you can apply for small business financing.
Small business loans are a great resource for businesses that need help funding their startup costs.
These loans can be borrowed through banks, credit unions, alternative lenders, or the Small Business Administration (SBA).
Small business loans typically have lenient requirements, offer high loan limits, and have competitive interest rates — making them ideal for small businesses in nearly any industry.
If you need help getting your small business off the ground, small business loans are a great solution.
Small business loans can be used for a number of applications, including:
- Purchasing real estate
- Hiring employees
- Purchasing equipment and inventory
- Financing marketing initiatives
- And more
Small businesses rely on financing to help grow and expand. Without small business loans, business owners typically do not have the capital to fund new business ventures.
By filling out your ITIN application, you can take advantage of this resource to help fund the startup costs for your new small business in the United States.
It’s Time to Grow Your Small Business
After getting your ITIN, you’ll finally be able to apply for a small business loan.
First, you need to find a lender. As mentioned above, small business loans are available from banks, alternative lenders, and the SBA. Be sure to compare lenders to find the best rates available for you.
After submitting your application, you can receive your funds and start investing in the growth of your small business.
Now you know why an individual taxpayer identification number is an important resource for foreign entrepreneurs in the United States.
If you are a foreign entrepreneur who wants to build a business in the US, fill out your ITIN application today to get started.