Before giving detailed information about ITIN application and its benefits, let us explain the following first. The ITIN number is for use in federal tax reporting matters only. You may not use this number for any other purpose. The IRS wants to help you comply with USA tax laws. It also aims to efficiently process individual tax returns and accounts. For this reason, if you do not have the right to obtain a social security number, it gives you an ITIN to make the payment.
The important point here is this: ITIN does not authorize you to work in the USA. But with an ITIN, you can become a partner or owner of a company in the USA. Also for social security benefits or earned income tax credit, it does not give you any rights.
What Do You Use the ITIN Number for?
In the USA, you only get an ITIN number for federal tax reporting purposes. Because of that this number does not serve any other purpose. The IRS accepts the ITIN application to help individuals comply with USA tax laws. So IRS keeps track of individual tax returns. It also processes tax return accounts efficiently. There are people who are not entitled to a social security number in the USA. The IRS agency issues an ITIN to process these people’s payment transactions.
You cannot get a work permit in the USA with an ITIN number. But you can become a company partner with ITIN in the USA. You can also own a company with this number. Meanwhile, the ITIN application does not provide social security benefits. In addition, it does not entitle you to the earned income tax credit.
The Benefits of an ITIN Number
You can be an undocumented immigrant in the USA. Or you may not have a Social Security Number (SSN) in the USA. In these cases, you can file your tax return by obtaining an ITIN number. In addition, the ITIN allows you to comply with state and federal tax laws. So you can establish sole proprietorships, even if you are an undocumented immigrant. You can also engage in income-generating activities. You can also get business permits.
If you don’t already have an SSN number in the US, it will be harder to get a loan for your company. However, to overcome this challenge, you need to get an ITIN number. This makes it easier for you to get a loan.
What are the Benefits of the ITIN Application in Your Business Life?
Now, let’s briefly examine how the ITIN application can benefit you in your business life.
- You Can Pay Your Tax: Obtaining an ITIN number is extremely important if you are filing a tax return. If you do not have an ITIN number, you cannot file your tax return. You would also be breaking the law at both the state and federal level.
- You Can Open a Bank Account: Although not valid for all US states, obtaining an ITIN number can help you open an account with some banks. This will be an important step when establishing your own firm, your sole proprietorship.
- You Can Build Your Credit History: You can apply for the ITIN application to get a bank loan and credit card in the USA. Thus, you can create your credit history. Creating a credit history will be very useful in the future.
- When You Apply for an ITIN Number, the Way to Get a Business Loan Opens: Some credit institutions in America give business loans. These organizations ask applicants for an ITIN number. In short, there are loans you can get with an ITIN number. So you can successfully build your business. In fact, the ITIN is essential for growing your personal business.
Professional Consultancy Firms
We have outlined topics such as ‘Getting an ITIN number’, ‘What are the benefits of getting an ITIN number?’ and’ Where to use the ITIN number?’. If you need professional help regarding all ITIN application processes, you can get support from professional consultancy firms. At the end of our article; we wish you healthy, happy and prosperous days.
Ein-itin.com is a brand of Cohen Investment LLC, act as a Certified Acceptance Agency. Ein-itin.com provides professional services to prepare and apply for an Individual Tax Identification Number (ITIN) to submit through IRS. As a Certified Acceptance agent , Ein-itin.com prepares and submits applications for an Individual Taxpayer Identification Number (“ITIN”) on behalf of their applicants. Ein-itin.com tracks the application processing and notifies ITIN Applicants for their ITIN Confirmations. Ein-itin.com understands the applicant situation, inform before the ITIN Application process. Ein-itin.com helps to applicant to apply for their ITIN in a convenient way to avoid mistakes and rejection for ITIN Application. Any individual may hire us to prepare, submit and obtain his or her ITIN Number (via W7 Form) application to the IRS.