How to Apply for an ITIN in the US: The 2026 Guide for Business Owners

For international entrepreneurs and non-resident founders, the United States is the premier market for scaling a global brand. After forming your LLC and securing your Employer Identification Number (EIN), you may encounter a final administrative step: obtaining a personal tax identification number. Since most foreign founders are ineligible for a Social Security Number (SSN), the IRS provides an Individual Taxpayer Identification Number (ITIN).

Quick Summary: 2026 ITIN Application Checklist

What is an ITIN?

An ITIN is a tax processing number issued by the IRS for those who must have a U.S. taxpayer identification number but are not eligible for an SSN. It functions as follows:

• Universal Eligibility: It is for anyone—regardless of immigration status—who has a U.S. tax reporting requirement. This includes resident aliens, non-residents, and their families.
• Strictly for Tax: An ITIN is strictly for tax processing. It does not authorize work in the U.S. or provide eligibility for U.S. Social Security benefits.
• A Personal Identifier: While the EIN identifies your business entity, the ITIN identifies you as an individual to the IRS.

1. Understand When an ITIN is Necessary

For many international founders, an ITIN is not a “day-one” requirement. You specifically need one if:

• Personal Tax Obligations: You are required to file a U.S. federal tax return (Form 1040-NR) to report personal income from your U.S. business activities.
• Claiming Tax Treaty Benefits: You want to reduce the standard 30% withholding tax on U.S.-sourced income.
• Banking Requirements: While neobanks often open business accounts with just an EIN and passport, some traditional banks may require an ITIN for personal identity verification.

2. The Form W-7 Requirements

The core of your application is IRS Form W-7. To avoid rejection, the document must be filled out with total precision:

• Legal Name: Must match your passport exactly (including middle names).
• Reason for Applying: Most founders select Box b (Non-resident alien filing a U.S. federal tax return).

3. The Passport as the “Gold Standard”

To approve an ITIN, the IRS must verify both your identity and your foreign status. A valid international passport is the only document that proves both on its own. While the IRS technically accepts combinations of other documents, using a passport is the most reliable method for international business owners.

4. The Tax Return Linkage

The #1 reason for ITIN rejection is failing to attach a federal tax return. In 2026, the IRS requires your Form W-7, such as Form 1040-NR. This proves to the IRS that you have a legitimate tax need for the number. The IRS will process your ITIN application first, assign your number, and then proceed to process the tax return.

5. Submission: Mail-In vs. CAA Verification

Founders have two primary paths for final submission in 2026:

• The Mail-In Path: You must mail your original physical passport to the IRS in Austin, Texas. They return it after 8–11 weeks, which carries a risk of loss in international transit.
• Certified Acceptance Agents (CAA): Professional services like Counto verify your passport via a video call. This allows you to keep your physical passport while we send a certified forensic copy to the IRS.

Frequently Asked Questions

How long does it take to get an ITIN in 2026?

Once submitted, the IRS typically processes the application in 7 to 11 weeks. During peak tax season, wait times can extend slightly longer.

Does an ITIN expire?

Yes. If an ITIN is not used on a federal tax return at least once in three consecutive years, it will expire and must be renewed.

Can I open a U.S. bank account with an ITIN?

Yes. While not a universal requirement for all business accounts, most major U.S. banks and digital platforms accept an ITIN as a substitute for an SSN for identity verification.