Starting a new life and business in another country is a bold and daring move.
If you’ve just moved to the US and started a business, you know a social security number (SSN) is required to pay taxes and get loans. But what steps do you take when you don’t have one?
You need to file an ITIN application.
An Individual Taxpayer Identification Number (ITIN) is used by foreigners who haven’t met the requirements to receive an SSN. An ITIN is a solution for anyone applying for loans or submitting taxes.
Find out what the following business owner did so she could pay taxes legally on income already earned.
Sandra’s Business Prospers But She’s Concerned
When Sandra immigrated to the US from Mexico, she had no idea that her business as a social media specialist would take off so quickly.
Now she has a steady stream of clients who want her to run campaigns to brand and market their products, thereby increasing sales. It’s been an exciting time for her but the April 15th deadline to submit a tax return and pay taxes threatens her peace of mind.
Even though Sandra is a legal immigrant, she’s concerned about her legal status and the implications of not submitting taxes she owes to the Federal government. She simply doesn’t know how to pay the money she owes without having an SSN.
And that’s not the only dilemma she finds herself in.
To keep her business growing, she wants to open an office in a commercial district to get more customers who don’t know about her business. However, she needs money to pay rent and buy office equipment and supplies.
She knows that in order to do all these things, she needs a business loan, but she’s sure she won’t qualify for the same reason: she doesn’t have an SSN.
By all means, it’s mandatory for Sandra to prepare a tax return and pay taxes. Since she doesn’t have an SSN, a close friend tells her to fill out an ITIN application. Then she can file a tax return, open a bank account, and start building up her credit.
Sandra discovers that applying for an ITIN is very simple.
After completing the application, Sandra provides requested documents to verify her identity. To her amazement, it’s possible to submit a tax return along with the application and send both to a specific IRS address. One of her main goals is to stay compliant with IRS regulations so she doesn’t pay penalties or raise red flags because she’s a non-citizen.
If everything is in order, Sandra should receive the ITIN in as little as six weeks.
Sandra had no idea that filling out an ITIN application was so easy and would solve her immediate problems: paying the taxes she owed and being a suitable candidate for a loan.
As soon as she gets the number, she will take immediate steps to build a business credit history, get a business license, and meet with a lender. Now, Sandra is confident about building a new life in the US and keeping her business on track for growth.
Filling Out an ITIN Application Helps You and Your Business
By now you’re probably relieved to know that filling out an ITIN application isn’t complicated.
Like Sandra, you can work gainfully in the US while your immigration status is being finalized. Having an ITIN opens financial doors that otherwise remain closed. Once your application is approved, you can enjoy the benefits of having an ITIN.
Why not take the necessary steps today to operate your business legally and apply for this important nine-digit number?