What is an ITIN? Definition for foreign LLC owners
ITIN explained: who needs one, why a foreign LLC owner usually does not need it for Form 5472, how Form W-7 works and when an ITIN expires.
An ITIN is a tax processing number the IRS issues to individuals who need a US taxpayer number but are not eligible for a Social Security number. It is for federal tax purposes only.
Do you need one?
- For Form 5472, usually not. The owner's US identifying number is asked "if any". A foreign-owned LLC must give the owner's FTIN instead.
- For a personal US return, yes. If you file a Form 1040-NR, you need an SSN or an ITIN. Without one, you attach Form W-7 to a paper return.
Rules worth knowing
- According to the Instructions for Form W-7, you "can't electronically file (e-file) a return using an ITIN in the calendar year the ITIN is assigned".
- An ITIN not used on at least one federal tax return for 3 consecutive tax years expires on December 31 of the third year and must be renewed before it is used again.
- When you apply with a return, leave the identifying number box on the return blank. The W-7 goes, with the return and your identity documents, to the ITIN Operation in Austin, Texas.
Go further
1040-NR Foreign LLC Owner: Do You Need to File?
Wondering if you must file Form 1040-NR as a foreign LLC owner? Learn how ECI, US trade or business status, and tax treaties affect your return.
Read the guideForm 5472 Line-by-Line Guide for Foreign-Owned US LLCs
Learn how to fill out Form 5472 and pro forma Form 1120 for your foreign-owned single-member US LLC. Line-by-line guide, worked example, fax and mailing rules.
Read the guideThis article is general information about US tax rules for foreign-owned LLCs, not advice for your specific situation. Rules change; check the date above and ask before you file.