ITIN for US LLC or LLP, I’m a foreign member. Do I need this US tax ID?
All foreign member or nonresident alien (NRA) member of US LLC or US partnership will require to obtain an valid ITIN for opening personal bank account or to file US Nonresident Alien tax filing (Form 1040NR) and for all other compliance reporting purposes including annual returns, Form 1065 Schedule K-1 partners share of reporting.
Is ITIN compulsory? What happens if I don’t complete Form W8BEN?
All foreign members who do not have a valid US tax ID/ITIN will be subject to unnecessary 30% US tax withholding for noncompliance and reporting will be done on Form 1042S.
Can I claim back the 30% withheld on Form 1042S without ITIN?
Yes, You can claim back the 30% tax withholding by claiming appropriate tax treaty position, however please note you would still need ITIN to claim back the taxes or to file US personal tax return.
Do I need to wait to get my ITIN to file my 1040NR US tax return?
If you do not have the ITIN, you can submit the 1040NR tax return (If the 1040NR tax forms are ready) to file with 1042S taxreclaim and file Form W7 at the same time, wherein ITIN will be allocated for the 1040NR tax return, this process helps to have the ITIN and tax return processed at the same time.
I recently set up US LLC/US INC and sole member of LLC, I do not have my 1040NR tax return. Can I apply for ITIN?
Yes, as far as you have a valid Employer Identification Number (EIN) and certificate of incorporation then you can start the ITIN process, please ensure your US registration agent (who set up the LLC) gets the EIN during the registration process. If EIN not obtain, then you may have to wait to obtain an EIN first. An EIN is a mandatory number to apply for ITIN for the US LLC or INC. Please refer to this video if you have misguided to get ITIN first to get EIN:
I’m a newly appointed member of a law firm/Foreign partner of US LLP, I do not have my 1040NR tax return. Can I apply for ITIN?
Yes, as far as you have a valid Employer Identification Number (EIN) and relevant supporting to prove that your are partner or member of US LLP (our team can guide through the supporting documents check) and assist you the process to apply for ITIN without any rejections.
Alternatively, If you have been a member for over the year and have received the Form1065 K-1s with your share of income reporting data or Form 8805 then we can assist with the US nonresident tax return filing and ITIN Form W7 application at the same time successfully.
Common category of ITIN(US Tax ID) scenario for US LLC or LLP
- ITIN for USA based LLC
- ITIN for the member for US LLC or USA Inc
- ITIN for the foreign partner of US LLP
- ITIN for the sole member of US LLC.
Supporting documents check assistance and role of the Certifying Acceptance Agents (CAA) to ensure the ITIN application is approved successfully.
As CAA (IRS certified acceptance agent) in order to comply our roles as per our agreement with IRS and to ensure the passport certification as a valid process, the below-listed task is mandatory for the CAA:
1) FormW7 with our signature and CAA agent code details (at the bottom of Form W7).
2) On our company letterhead, we need to write a letter to the IRS.
3) Complete the certificate of accuracy (COA) form on your behalf with our signatures.
4) Certified passport copy with our agent code seal.
5) Ensure all the supporting documents are correct.
6) In case of any issue with rejection, we have a special dedicated line to speak with IRS on the applicant’s behalf and have the issue sorted out for you.
If we miss any step as listed above (1 to 5) then the application will not be successful. So as a CAA our role is to ensure the whole ITIN application process is accurate and not just to verify the passport and certify the same.
If you need assistance with the US TAX ID, ITIN, EIN or US tax return service.
Our team specialise with international expatriate U.S. personal tax return service. If you need assistance with US 1040 filing for refund claim/FATCA Compliance work/FBAR FINCEN114 Filing, ITIN/ Form W7 Application/EIN/Form W8BENE or CAA services/1040NR U.S. tax filing for refund claim of excess 1042S / 8288A/ 8805/ W2/ 1099. We are happy to assist our clients in a timely, efficient, and cost-effective way.
For overseas clients. We can arrange for a skype interview if the documents are sent to one of our representative teams.
Our Skype ID is: TAH2108