How Foreign-Based U.S. LLC Owners Can Get an ITIN

Why You Might Need an ITIN

If you’re a non-U.S. entrepreneur who set up a U.S. LLC, you’ve already done one of the hardest parts — getting your business registered and obtaining an EIN. But even with that done, the IRS still needs a way to identify you personally for tax purposes.

That’s where the Individual Taxpayer Identification Number (ITIN) comes in. It’s a nine-digit number the IRS gives to individuals who don’t qualify for a Social Security Number (SSN) but still have to file or report something to the IRS.

If your LLC earns income in the U.S., files Form 5472, issues you a K-1, or claims a treaty benefit, chances are you’ll need an ITIN.

When an ITIN Becomes Necessary

You’ll likely need an ITIN if:

• You’re listed as a foreign member or manager of a U.S. LLC.

• Your LLC files Form 5472 (required for single-member foreign-owned LLCs).

• You earn U.S.-sourced income or must file Form 1040-NR.

• You plan to claim tax treaty benefits or refunds.

• You appear on Schedule K-1 from a partnership.

Even though your company has an EIN, that number belongs to the LLC — not to you. The IRS still needs an ITIN to identify the individual behind the business.

🏦 Why Banks Used to Help — and Why They Don’t Anymore

Years ago, some small community banks and credit unions would do something helpful for international clients: they’d write a letter to the IRS confirming that a customer needed an ITIN to open or maintain a U.S. business account.

That letter could be included by a Certifying Acceptance Agent (CAA) in the ITIN application packet (Form W-7) under Exception 1(a) — “Third-Party Withholding or Reporting Requirement.”

Unfortunately, those days are mostly gone. With stricter compliance and anti-money-laundering rules, most U.S. banks stopped issuing ITIN support letters altogether. Today, you’ll need to handle your ITIN application independently — either through the IRS directly or with a CAA and submitting your tax return with the ITIN application.

Hint! It never hurts to ask your bank if they are willing to issue a letter requesting ITIN, but we aren't aware of any banks that still issue the letter. If you get lucky, let us know!

A Modern Option: Mercury Bank

While traditional banks have tightened their requirements, fintech platforms have opened new doors for international founders.

Mercury Bank, for example, allows non-U.S. business owners to open a U.S. LLC checking account without an SSN or ITIN.

They typically ask for:

• Your LLC formation documents (Articles of Organization).

• Your EIN confirmation letter from the IRS.

• A valid passport or government-issued ID.

This means you can often get your business bank account up and running first, and work on your ITIN in parallel.

⚠️ Note: AM Tax Inc. is not affiliated with Mercury Bank in any way. We’re simply sharing this information to help business owners understand their options. Always check directly with the financial institution for the most current eligibility requirements.

How to Apply for an ITIN

To get an ITIN, you’ll need to file Form W-7 with the IRS and provide the proper documentation.

What You’ll Need:

• Form W-7 (signed and completed).

• A federal tax return (Form 1040-NR or 1120/5472) — unless you qualify for an exception.

• Proof of identity and foreign status, such as your passport or a certified copy from your country’s issuing authority.

If you’re applying before filing a tax return, you’ll usually use:

Exception 1(a): “Third-Party Withholding or Reporting Obligation.”

That tells the IRS you need an ITIN for U.S. business or compliance purposes.

Three Ways to Apply

1. Through a Certifying Acceptance Agent (CAA)

   • Fastest and safest.

   • A CAA can verify your passport and submit everything directly to the IRS — no mailing originals.

   • Example: AM Tax Inc. is an IRS-authorized CAA offering both in-person and remote interview options for international clients. Be aware that a certified copy of your passport will need to be mailed to our office before the interview.

2. By Mail to the IRS ITIN Operations Office

   IRS ITIN Operation
   P.O. Box 149342
   Austin, TX 78714-9342 USA

   • Processing takes around 8–12 weeks (longer during tax season). Keep in mind if the IRS rejects your package or asks for additional information, it may extend the processing. The IRS delay happens too.

3. In Person at an IRS Taxpayer Assistance Center

   • Appointment required, only available inside the U.S.

After You Receive Your ITIN

• Use it on all IRS forms linked to your LLC.

• Renew it if unused for three consecutive years.

• Keep your mailing address up to date with the IRS.

Avoid These Common Mistakes

🚫 Mailing your original passport without tracking.
🚫 Leaving off the “Exception” explanation on Form W-7.
🚫 Using only your registered agent’s address without proof of real business activity.
🚫 Sending incomplete or unsigned paperwork.

💼 Why Work With a CAA

Working with an IRS-authorized Certifying Acceptance Agent saves time, paperwork headaches, and the risk of rejected applications.

At AM Tax Inc., we help:

• Verify your identity (passport check done securely).

• Prepare and submit your ITIN package correctly.

• File your Form 5472 or 1040-NR accurately if needed (tax return prep pricing applies)

• Keep you fully compliant with IRS rules.

• Help you resolve requests for additional information.

• Call a special CAA line to discuss your ITIN case with the IRS.

• Oversee your case until you receive the ITIN.

Just keep in mind, the IRS is very picky sometimes and rejects the ITIN cases for very minimal errors.

✳️ Bottom Line

• Most banks no longer issue ITIN letters for foreign clients.

• Fintechs like Mercury Bank let you open a business account without an SSN or ITIN.

• You’ll still need an ITIN to stay tax-compliant and file properly.

• The easiest route is through a Certifying Acceptance Agent who can verify your ID and handle the filing for you.

📩 Need help obtaining your ITIN without mailing your passport?

Contact AM Tax Inc., an IRS-authorized Certifying Acceptance Agent, and get started from anywhere in the world.

ITIN/CAA services pricing