ITIN for LLC Owners: Do You Need One? Complete Guide

Do LLC Owners Need an ITIN?

Yes. The IRS requires every individual who earns income from US sources to have a tax identification number. If you are not eligible for a Social Security Number, your alternative is an ITIN.

For single-member LLCs, the IRS treats your LLC as a “disregarded entity.” This means the LLC itself does not pay federal income tax. Instead, all income and expenses pass through to your personal tax return (Form 1040-NR for non-residents). You need an ITIN to file that return.

For multi-member LLCs, the IRS treats the entity as a partnership. The LLC files an informational return (Form 1065) using its EIN, and each member receives a Schedule K-1 showing their share of income. Every non-US member must then file a personal return using their own ITIN.

Even if your LLC has no US-sourced income in a given year, you may still need to file a return to report that fact. Having an ITIN ensures you can meet your filing obligations without complications.

ITIN vs EIN for LLCs: What Is the Difference?

This is the most common point of confusion for non-US LLC owners. The short answer: you need both. Here is how they differ.

Your LLC's EIN is like the business's social security number. Your ITIN is like your personal social security number. Both are necessary for a fully compliant US business operation. Learn more about getting an EIN for your LLC.

How to Get an ITIN and EIN for Your LLC

The order matters. Here is the recommended sequence for non-US LLC owners:

1. Form your LLC first. Register your LLC in your chosen state (Wyoming, Delaware, and New Mexico are the most popular for non-US owners). You receive Articles of Organization and an operating agreement.
2. Apply for your EIN. With your LLC formed, apply for an EIN using IRS Form SS-4. Non-US applicants without an SSN or ITIN can apply by phone or mail. The EIN is issued immediately by phone or within 4 weeks by mail.
3. Apply for your ITIN. Complete IRS Form W-7 with your personal information. Attach your US tax return (Form 1040-NR) and identity documents. You can use a Certifying Acceptance Agent to verify your passport so you do not have to mail the original to the IRS.
4. Open your business bank account. With both your EIN and ITIN (or at least the ITIN application receipt), you can open a US business bank account at banks like Mercury, Relay, or Wise.

Opening Business Bank Accounts as a Non-US LLC Owner

One of the main reasons non-US entrepreneurs form US LLCs is to access the US banking system. A US business bank account lets you receive payments from US clients, pay for US services, and manage your business finances in dollars.

Most banks require three things from non-US LLC owners: the LLC's EIN, the owner's ITIN (or SSN), and the LLC formation documents (Articles of Organization and operating agreement). Some banks also require a US address for the business.

Best Banks for Non-US LLC Owners

• Mercury: The top choice for non-US LLC owners. Apply online, no branch visit required, no monthly fees, and excellent integration with accounting tools. Mercury is built for startups and online businesses.
• Relay: Free business checking with up to 20 sub-accounts for organizing your finances. Great for freelancers and small business owners who need simple, no-fee banking.
• Wise Business: Ideal if you send and receive international payments. Wise offers multi-currency accounts, US routing numbers, and low-cost international transfers.

If you also sell on Amazon through your LLC, your business bank account can receive Amazon payouts directly. Read our guide on ITIN for Amazon sellers for specific details on connecting your bank to Seller Central.

Tax Filing for Non-Resident LLC Owners

Your tax filing obligations depend on your LLC structure and whether you have US-sourced income. Here is a breakdown of the most common scenarios.

Single-Member LLC (Disregarded Entity)

You file Form 1040-NR using your ITIN. All LLC income and expenses are reported on Schedule C, which is attached to your personal return. You may also need to file Form 5472 to report transactions between you and your LLC, as the IRS requires this for foreign-owned disregarded entities.

Multi-Member LLC (Partnership)

The LLC files Form 1065 (partnership return) using its EIN and issues a Schedule K-1 to each member. Each non-US member then files Form 1040-NR using their individual ITIN to report their share of the partnership income. The LLC may also need to withhold tax on income allocable to foreign partners.

Key Deadlines

• Form 1040-NR: Due April 15 (or June 15 with automatic extension for non-residents outside the US).
• Form 1065: Due March 15 for partnership returns.
• Form 5472: Due with your income tax return, with a $25,000 penalty for late filing.