You don’t need to live in the U.S. to run a business there. That’s the power of the internet.
But just because your customers are online doesn’t mean U.S. rules don’t apply. If you’ve set up a U.S. LLC (or plan to), you’ve probably come across the term “ITIN” on PayPal, Stripe, tax forms, or from your accountant.
Many non-U.S. founders ignore it at first, thinking an EIN is enough until something goes wrong: a payment freeze, tax issue, or compliance alert. That’s when you realize you’re missing your personal U.S. identity in the system.
That missing piece is your ITIN, and it’s one of the most important documents no one tells you about right away.
First, What Exactly Is an ITIN?
Individual Taxpayer Identification Numbers, or ITINs, are issued by the IRS to those specific people who are ineligible for a SSN (Social Security Number).
Now, who are these specific people? All non-resident founders, freelancers from other countries, spouses of U.S. residents or citizens, and even children who are dependents on a U.S. tax return.
Unlike an EIN, which identifies your company, an ITIN identifies you.
Without it, the IRS, PayPal, Stripe, and other institutions have no reliable way to recognize you in the system.
Why Having Just an EIN Isn’t Enough
This is where many founders get stuck. They form their U.S. company, get their Employer Identification Number (EIN), and assume they’re fully verified.
But here’s the problem: the EIN is for your business. It proves the company exists, but it doesn’t prove who’s behind it.
Payment processors, marketplaces, banks, and the IRS all want to know:
- Who owns the company?
- Who’s responsible for taxes?
- Who’s getting paid?
Your ITIN is the sole legal alternative if you don’t have an SSN.
Real Scenarios When an ITIN Is Absolutely Required
Business Globalizer has helped thousands of clients who ran into problems because they didn’t know they needed an ITIN. And it’s not just for PayPal.
Here are some common reasons you might require an ITIN as a non-U.S. person:
- To verify identity for PayPal or other financial institutions: These platforms often freeze or limit accounts that do not have a personal US tax ID.
- To file a federal tax return: if you made U.S.-sourced income and need to report it.
- To claim tax treaty benefits: Reducing double taxation between your home country and the U.S.
- If you’re listed on a U.S. citizen or resident spouse’s tax return: Married couples often need ITINs for one partner.
- If your U.S. spouse or parent wants to claim you as a dependent: Even children need ITINs in this case.
In other words, you don’t just need an ITIN when something goes wrong, you need it before it does.
Business Globalizer: From Paperwork to Peace of Mind
This is where most online platforms fall short; they show you how to fill out a form, but not when or why you actually need it.
Business Globalizer saw this gap early. That’s why they became an IRS Certified Acceptance Agent (CAA), officially authorized to assist non-U.S. individuals with their ITIN application even from abroad.
Instead of sending your passport to the U.S. or figuring out IRS forms alone, their process is straightforward:
- You provide a clear passport copy and provide some required info
- Their in-house team prepares your W-7 correctly
- The IRS receives it through the proper channel
- You receive your ITIN within 7 to 10 weeks
There’s no guesswork, no rejected submissions, and no lost documents. Just proper filing, the first time.
Yes, Even Your Child May Need an ITIN
One of the most overlooked reasons for getting an ITIN? Being claimed as a dependent.
Let’s say you’re a U.S. resident/citizen filing taxes and you want to claim your nonresident spouse or dependents (child, parents). The IRS will require a valid tax ID for them, even if they’re not earning anything. That means they’ll need an ITIN.
And if you’re a non-U.S. entrepreneur working with U.S. consultants or partners, or sharing ownership with family members, it’s smart to check if those people will also need ITINs for tax purposes.
When Should You Apply for an ITIN?
If your U.S. company is already formed, or you’re in the process of launching, this is the right time.
Don’t wait until PayPal freezes your funds or Stripe asks you for personal tax info. Apply while you’re setting things up so your accounts don’t hit a wall later.
If you already hit a wall? Business Globalizer has seen it all:
- Blocked Payoneer withdrawals
- Delayed IRS refunds
- Marketplace verifications failing
- Tax penalties for non-compliance
Every one of these problems has been resolved by starting with a proper ITIN.
Other Essentials That Complete the U.S. Business Journey
While the ITIN often plays a key role, it’s just one part of a much bigger picture. Building a functional U.S. company as a non-resident involves more than just tax IDs.
Here are some other important parts that Business Globalizer helps with, each making your business setup easier, more trustworthy, and ready for real-world use:
- Company formation (LLC or C-Corp) in the U.S.
- EIN application
- BOI filing & IRS compliance
- Registered agent & U.S. lease agreement
- U.S. fintech or bank account setup
- Approvals in Marketplaces (Amazon, Walmart)
- High-risk merchant account support
- Trademark registration
- U.S. resale certificate
- Tax filing & company dissolution
- DUNS number and business verification
Together, these form the foundation of running a real business; not just having one on paper.
Final Words
You might have the best business idea, a great product, and excited customers, but if the system doesn’t recognize you, things can fall apart.
An ITIN isn’t just a technicality; it’s the key to smooth business in the U.S. No interruptions, flags, or financial blocks. Whether you’re the owner, a dependent, or just trying to be part of the U.S. business world, it’s essential.
With teams like Business Globalizer, getting one is no longer a hassle.
