Do I Need an ITIN to Start My US Business?

One of the most common questions international entrepreneurs ask when setting up a U.S. company is whether they need an ITIN (Individual Taxpayer Identification Number) right away. The short answer is: not immediately.

You can legally form your LLC and obtain an EIN (Employer Identification Number) without an ITIN. In fact, many founders launch their businesses this way while sorting out tax identification later. But whether or not you need an ITIN depends on how you intend to operate and your obligations as an owner.

What You Can Do Without an ITIN

• Register your LLC in any U.S. state.

• Obtain an EIN from the IRS, which allows you to hire employees, open a business bank account, and file essential tax documents for your company.

• Begin operating your business, especially if you’re working with U.S.-based partners, vendors, or clients.

This means your company can be legally active without you personally having an ITIN—at least at the beginning.

When You Will Need an ITIN

While you can get started, there are key situations where you must have an ITIN:

1. Using Payment Platforms
   Services like Stripe, PayPal, Amazon Seller Central, Shopify Payments, and similar platforms often require the business owner to have an ITIN on file for verification and reporting purposes. Without it, your ability to process customer payments may be limited.

2. Filing Your U.S. Tax Return
   If you are the sole owner of an LLC and are considered a “disregarded entity” for tax purposes, you’ll need to file a Form 1040NR (Nonresident Alien Tax Return). The IRS requires an ITIN to match your tax filings with your business records.

3. Claiming U.S. Tax Treaty Benefits
   Many countries have tax treaties with the United States to avoid double taxation. To access these benefits (such as reduced withholding on certain income types), you must have an ITIN.

Why This Matters for International Founders

Skipping the ITIN may allow you to launch quickly, but if your business model relies on global e-commerce platforms, digital payments, or treaty benefits, you’ll need to apply for one sooner rather than later. The ITIN is also a long-term compliance tool—it keeps your business aligned with U.S. tax laws and helps you avoid unnecessary penalties or complications with the IRS.

Ntare Consulting & Financial’s Perspective

At Ntare Consulting & Financial, we guide international entrepreneurs and diaspora founders through the entire business setup journey. Our approach is simple: launch lean, then layer compliance.

• Phase 1: Get your LLC and EIN so your business is legally established.

• Phase 2: Open your bank account and start operations.

• Phase 3: Apply for your ITIN when your business activity requires it (payments, taxes, or treaty benefits).

This phased approach saves time and reduces friction while still positioning you for long-term growth.

Final Word

You don’t need an ITIN on day one to start your business—but you will almost certainly need one as your operations grow. Think of it as moving from “startup mode” to “sustainability mode.” The ITIN is a key part of that transition.

If you’re ready to set up your U.S. business and need clarity on EINs, ITINs, and compliance, Ntare Consulting & Financial is here to help you navigate every step.