If you are a non-U.S. citizen or resident alien looking to start or grow a business in the United States, one of the first steps you need to take is getting an ITIN (Individual Taxpayer Identification Number). An ITIN allows you to comply with U.S. tax laws, open business bank accounts, and access funding options that would otherwise be unavailable to you.
This comprehensive guide walks you through the entire ITIN application process step by step, explains what documents you need, where to apply, how long it takes, and most importantly, how you can use your ITIN to access business funding and grow your company.
Table of Contents
What Is an ITIN Number?
An ITIN (Individual Taxpayer Identification Number) is a nine-digit tax processing number issued by the Internal Revenue Service (IRS). It is formatted like a Social Security Number (XXX-XX-XXXX) but always begins with the number 9 and has a range of specific middle digits (50-65, 70-88, 90-92, and 94-99).
The IRS created the ITIN program in 1996 to provide a way for individuals who are not eligible for a Social Security Number to comply with U.S. tax laws. Since then, millions of people have used ITINs to file tax returns, establish businesses, and contribute to the U.S. economy.
Key Takeaway
An ITIN is only for federal tax purposes. It does not authorize you to work in the United States, does not provide eligibility for Social Security benefits, and does not change your immigration status. However, it is a critical tool for business owners who need to file taxes and access financial services.
Who Needs an ITIN?
You need an ITIN if you meet all three of the following criteria:
- You do not have a Social Security Number (SSN) and are not eligible to obtain one from the Social Security Administration.
- You have a requirement to furnish a federal tax identification number or file a federal tax return.
- You fall into one of the IRS-recognized categories, such as:
- Non-resident alien filing a U.S. tax return
- Resident alien filing a U.S. tax return based on days of presence
- Dependent or spouse of a U.S. citizen or resident alien
- Dependent or spouse of a non-resident alien visa holder
- Non-resident alien claiming a tax treaty benefit
- Non-resident alien student, professor, or researcher filing a return or claiming an exception
Common scenarios where business owners need an ITIN include:
- Opening a sole proprietorship and needing to file Schedule C with a personal tax return
- Becoming a member or partner in an LLC or partnership
- Needing to apply for an EIN (Employer Identification Number) for a new business
- Receiving rental income, investment income, or other taxable payments in the U.S.
- Applying for business funding or credit that requires a tax ID number
ITIN vs. SSN vs. EIN: Understanding the Differences
Many people confuse these three tax identification numbers. Here is a clear breakdown of how they differ:
| Feature | ITIN | SSN | EIN |
|---|---|---|---|
| Issued By | IRS | Social Security Administration | IRS |
| Format | 9XX-XX-XXXX (starts with 9) | XXX-XX-XXXX | XX-XXXXXXX |
| Issued To | Individuals without SSN eligibility | U.S. citizens & authorized workers | Business entities |
| Purpose | Federal tax filing | Employment, tax, benefits | Business tax identification |
| Work Authorization | No | Yes | N/A (business entity) |
| Can Open Bank Account | Yes (many banks) | Yes | Yes (business accounts) |
| Expires? | Yes (if unused for 3 years) | No | No |
| Cost | Free | Free | Free |
Important
You can use your ITIN to apply for an EIN. This means even without a Social Security Number, you can establish a formal business entity in the United States with its own tax identification number.
Step-by-Step ITIN Application Process
Follow these seven steps to apply for your ITIN successfully:
Determine Your Eligibility
Before applying, confirm that you actually need an ITIN. If you are eligible for a Social Security Number (for example, you have work authorization), you should apply for an SSN instead. The IRS will reject your ITIN application if you are SSN-eligible. Review IRS guidelines or consult with a tax professional to verify your eligibility.
Download and Complete IRS Form W-7
Download Form W-7 (Application for IRS Individual Taxpayer Identification Number) from irs.gov. Fill out all required fields including your full legal name, mailing address and foreign address, date of birth, country of citizenship, foreign tax identification number (if applicable), and the reason you are applying (check the appropriate box in Section A).
Prepare Your Federal Tax Return
In most cases, you must submit a completed federal income tax return along with your W-7. Write "ITIN TO BE REQUESTED" in the space where you would normally enter your SSN or ITIN on the tax return. If you qualify for an exception (such as receiving withholding income or treaty benefits), gather the required exception documentation instead.
Gather Your Identification Documents
You need to prove your identity and foreign status. A valid passport is the only standalone document the IRS accepts. Without a passport, you must provide two documents from the IRS-accepted list (details in the Required Documents section below). Collect original documents or certified copies from the issuing agency.
Choose Your Submission Method
You have three options: mail your application to the IRS ITIN Operation in Austin, TX; apply in person at an IRS Taxpayer Assistance Center (TAC); or submit through an IRS-authorized Certifying Acceptance Agent (CAA). Each method has pros and cons detailed in the Where to Apply section below.
Submit Your Application
Package your completed W-7 form, your federal tax return (unless exempt), and your original identification documents (or certified copies). If mailing, send to: Internal Revenue Service, ITIN Operation, P.O. Box 149342, Austin, TX 78714-9342. If applying through a CAA or TAC, bring everything to your appointment.
Receive Your ITIN and Start Using It
Once approved, the IRS will mail you a CP565 notice with your assigned ITIN. You can then use this number to file taxes, apply for an EIN for your business, open bank accounts, and access business funding options. Keep your ITIN active by filing at least one tax return every three years.
Required Documents for Your ITIN Application
The IRS has strict requirements for the documents you can submit with your W-7 form. Here is the complete list of accepted identification documents:
Standalone Document (proves both identity and foreign status):
- Valid Passport — This is the only document the IRS accepts as a standalone proof. It is the simplest option and the one the IRS strongly recommends.
Alternative Documents (must provide two from this list):
- National identification card — Must show your name, photo, address, date of birth, and expiration date
- U.S. driver's license
- Foreign driver's license
- U.S. state identification card
- Foreign voter registration card
- U.S. military identification card
- Foreign military identification card
- U.S. Citizenship and Immigration Services (USCIS) photo identification
- Civil birth certificate — Required for dependents under 18 years of age
- Medical records — Accepted only for dependents under 6 years old
- School records — Accepted only for dependents under 18 (must be under 14 for certain applications)
- U.S. visa — Issued by the U.S. Department of State
Critical Warning About Original Documents
If you mail your application, you must send original documents or certified copies from the issuing agency. Notarized copies are not accepted. Original documents will be returned to you within 14 weeks. To avoid sending originals through the mail, consider applying through a Certifying Acceptance Agent or at a Taxpayer Assistance Center instead.
Where to Apply for Your ITIN
You have three options for submitting your ITIN application. Choose the method that works best for your situation:
Option 1: Mail Your Application
Mail your completed Form W-7, tax return, and original documents (or certified copies) to:
Mailing Address
Internal Revenue Service
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342
Pros: Convenient, no appointment needed, can do from anywhere in the world.
Cons: Must send original documents through mail, longest processing time (7-11 weeks), risk of documents being lost.
Option 2: Apply Through a Certifying Acceptance Agent (CAA)
A Certifying Acceptance Agent is a person or organization authorized by the IRS to assist with ITIN applications. CAAs can verify your original documents and send certified copies to the IRS on your behalf, so you do not have to mail your originals.
Pros: Keep your original documents, expert assistance with the application, fewer errors.
Cons: CAAs may charge fees ($50-$300 typically), availability varies by location.
Find a CAA near you on the IRS Acceptance Agent Program page.
Option 3: Visit an IRS Taxpayer Assistance Center (TAC)
You can apply in person at designated IRS offices. You will need an appointment, which you can schedule by calling 1-844-545-5640.
Pros: Documents verified on the spot and returned immediately, fastest method, no need to mail originals.
Cons: Limited TAC locations, requires in-person visit, must schedule an appointment.
Processing Time and What to Expect
After you submit your ITIN application, here is the typical timeline:
| Submission Method | Processing Time | Documents Returned |
|---|---|---|
| 7-11 weeks | Within 14 weeks by mail | |
| CAA | 7-11 weeks (ITIN issuance) | Originals never leave your hands |
| TAC (in person) | 7-11 weeks (ITIN issuance) | Returned same day at appointment |
During peak tax season (January through April), processing times may extend beyond the normal window. If possible, apply during the off-season (May through December) for faster processing.
You can check your application status by calling the IRS at 1-800-829-1040 after the 7-week mark. Have your W-7 form details handy when you call.
Pro Tip
If you need your ITIN quickly for business purposes, apply through a CAA or TAC to protect your documents, and submit during the off-season. Some CAAs can also expedite certain applications for an additional fee.
Using Your ITIN for Business
Once you have your ITIN, a range of business opportunities open up to you in the United States:
1. Apply for an Employer Identification Number (EIN)
With your ITIN, you can apply for an EIN through the IRS. An EIN is your business's tax ID number and is required for hiring employees, opening business bank accounts, and filing business tax returns. You can apply by phone (for international applicants), by fax, or by mail using Form SS-4.
2. Open a Business Bank Account
Many banks and credit unions accept ITINs for opening both personal and business bank accounts. Major banks that have historically accepted ITIN holders include Bank of America, Chase, Wells Fargo, and Citibank, though policies vary by branch. Having a dedicated business bank account is essential for separating personal and business finances and for establishing business credit.
3. File Business Taxes
Your ITIN allows you to file all required federal tax returns, including Schedule C for sole proprietors, Form 1065 for partnerships, and Form 1120 for corporations. Filing taxes consistently also keeps your ITIN active and builds a financial track record that can help with future funding applications.
4. Build Business Credit
While ITINs cannot be used to build personal credit through the three major credit bureaus (Equifax, Experian, TransUnion), you can build business credit through business credit bureaus like Dun & Bradstreet, Experian Business, and Equifax Business. Start with vendor credit lines and net-30 accounts, then work your way up to larger credit facilities.
5. Access Business Funding
Having an ITIN opens doors to various business funding options. While traditional bank loans may be difficult to obtain, many alternative lenders specifically serve ITIN holders with products like merchant cash advances, revenue-based financing, and equipment financing.
ITIN Business Funding: How to Get Capital Without an SSN
One of the biggest challenges ITIN holders face is accessing business capital. Traditional banks often require a Social Security Number and established U.S. credit history, which puts them out of reach for many immigrant entrepreneurs. The good news is that alternative funding options are available and growing.
Funding Options Available to ITIN Holders
- Merchant Cash Advances (MCA) — Based on your business's daily credit card sales. Approval depends on revenue, not personal credit score. Funding from $5,000 to $5 million.
- Revenue-Based Financing — Repayment is tied to a percentage of your monthly revenue. Flexible terms that adjust with your cash flow.
- Equipment Financing — Use the equipment itself as collateral. Available to ITIN holders with established businesses and consistent revenue.
- Invoice Factoring — Sell your outstanding invoices for immediate cash. Great for B2B businesses with reliable customers.
- Microloans — Offered by CDFIs (Community Development Financial Institutions) and some nonprofits. Typically range from $500 to $50,000.
What You Need to Qualify
Most alternative lenders require the following from ITIN holders:
- Active ITIN number
- EIN for your business
- 3-6 months of business bank statements showing consistent revenue
- Minimum monthly revenue (typically $10,000+)
- Business operating for at least 3-6 months
- Valid government-issued photo identification
Common Mistakes to Avoid When Applying for an ITIN
The IRS rejects thousands of ITIN applications every year due to preventable errors. Here are the most common mistakes and how to avoid them:
1. Applying When You Are Eligible for an SSN
If you have work authorization (such as an H-1B, L-1, or other employment-based visa), you should apply for a Social Security Number instead. The IRS will reject your ITIN application if they determine you are SSN-eligible.
2. Sending Notarized Copies Instead of Certified Copies
The IRS does not accept notarized copies of identification documents. You must send original documents or certified copies from the issuing agency. For example, a certified copy of a birth certificate must come from the vital records office, not a notary public.
3. Forgetting to Include Your Tax Return
Unless you qualify for a specific exception, you must attach a completed federal income tax return to your W-7 form. Submitting the W-7 without a tax return is one of the most common reasons for rejection.
4. Incomplete Form W-7
Every field on the W-7 must be completed. Common oversights include leaving the foreign address blank, not checking the correct reason-for-applying box, and forgetting to sign the form. Double-check everything before submitting.
5. Using an Expired Passport
Your passport must be valid (not expired) at the time of your application. If your passport has expired, renew it first or provide two alternative documents from the accepted list.
6. Not Keeping Your ITIN Active
ITINs expire if they are not used on a federal tax return at least once in three consecutive years. If your ITIN expires, you will need to go through the renewal process before you can use it again. File your taxes every year to keep it active.
7. Applying Too Close to the Tax Deadline
If you apply near the April 15 tax filing deadline, your tax return may be processed before your ITIN is assigned, leading to complications. Apply early in the tax season or during the off-season to avoid this issue.
Protect Yourself from ITIN Scams
Be cautious of anyone who guarantees instant ITIN approval, charges excessive fees, or asks you to provide your documents to unauthorized parties. Only use IRS-authorized Certifying Acceptance Agents and the official IRS ITIN Operation for your application. The IRS will never contact you by email or social media about your ITIN.
Frequently Asked Questions About ITINs
The IRS typically processes ITIN applications within 7 to 11 weeks if you apply by mail. If you apply in person at a Taxpayer Assistance Center or through a Certifying Acceptance Agent, processing may be slightly faster. During peak tax season (January through April), processing times may extend beyond 11 weeks.
Yes. An ITIN allows you to file federal tax returns, apply for an Employer Identification Number (EIN) for your business, open business bank accounts at many financial institutions, and access certain business funding options. However, an ITIN does not grant work authorization or change your immigration status.
An ITIN (Individual Taxpayer Identification Number) is a 9-digit number issued by the IRS to individuals who need to file taxes but are not eligible for a Social Security Number. An SSN (Social Security Number) is issued by the Social Security Administration to U.S. citizens and authorized workers. An EIN (Employer Identification Number) is a business tax ID used to identify a business entity for tax purposes. You can use an ITIN to apply for an EIN.
Yes. ITINs that have not been used on a federal tax return at least once in the last three consecutive tax years will expire. Additionally, ITINs with certain middle digits have been phased out on a rolling schedule. If your ITIN has expired, you must renew it by submitting a new W-7 form before filing your tax return.
Yes. Many alternative lenders and business funding providers accept ITIN holders for merchant cash advances, revenue-based financing, and other funding products. Merchant Fund Express specializes in helping ITIN holders access business funding from $5,000 to $5 million with fast approval times.
There is no fee to apply for an ITIN directly with the IRS. The application (Form W-7) is free. However, if you use a Certifying Acceptance Agent (CAA), they may charge a fee for their services, typically ranging from $50 to $300. You may also incur costs for document certification or notarization.
In most cases, you must attach a completed federal income tax return to your W-7 application. However, there are exceptions. You may qualify for an exception if you receive taxable income that requires withholding (such as scholarship income), if you are claimed as a dependent on someone else's return, or if you need an ITIN for a tax treaty benefit. Each exception requires specific supporting documentation.
The IRS accepts 13 types of documents for ITIN applications. A valid passport is the only standalone document accepted. If you do not have a passport, you must provide two documents from the accepted list, which includes national identification cards, U.S. or foreign driver's licenses, birth certificates, foreign voter registration cards, U.S. military ID cards, foreign military ID cards, U.S. visa, USCIS photo identification, medical records (for dependents under 6), and school records (for dependents under 18).