You can open an LLC with an ITIN. No federal law requires an owner to have a Social Security Number, and every state accepts an IRS-issued Individual Taxpayer Identification Number on the formation paperwork. What matters to the state is a complete filing and a paid fee, not what kind of tax ID sits behind the business.
The path from ITIN to operating LLC has a handful of concrete steps, and a few federal tax rules foreign owners miss at real cost. Work through them in order.
Get Your ITIN First If You Don’t Already Have One
If you haven’t been assigned an ITIN, apply by submitting Form W-7 to the IRS with a completed federal income tax return (usually Form 1040 or Form 1040-NR) and documents proving your foreign status and identity. You can mail the package to the IRS, bring it to an IRS Taxpayer Assistance Center, or work through an IRS-authorized Certifying Acceptance Agent who verifies your documents so you don’t have to mail originals like your passport.1Internal Revenue Service. How to Apply for an ITIN
Processing takes about 7 weeks, stretching to 9 to 11 weeks during tax season (January 15 through April 30) or if you apply from overseas.1Internal Revenue Service. How to Apply for an ITIN Once approved, the IRS mails Notice CP565 confirming your assigned number, full name, and date of birth.2Internal Revenue Service. Notice CP565 – Confirmation of Individual Taxpayer Identification Number Keep that letter. You’ll reference it repeatedly.
One trap: ITINs expire if you don’t use them on a federal tax return for three consecutive years. A lapsed ITIN has to be renewed with a fresh Form W-7 before you can use it on business filings, so check your status before you start.
What to Gather Before You File
Have this ready so the state doesn’t kick your application back:
- A business name that’s distinguishable from other entities on file in the state and includes a designator like “Limited Liability Company,” “LLC,” or an accepted abbreviation. Search the Secretary of State’s business name database before you settle on one.3Wolters Kluwer. 12 Tips for Naming Your LLC or Corporation
- A registered agent with a physical street address in the state of formation. You can serve as your own agent if you have an address there, or hire a service.
- Your ITIN and CP565 notice, so you can enter the nine-digit number correctly on the tax identification fields.
- A management choice: member-managed (owners run the business) or manager-managed (designated managers run it while other members are passive).
- A physical business address where the state can send correspondence.
Draft an operating agreement even if your state doesn’t require you to file one. It sets out ownership percentages, how profits get split, and what happens if a member leaves or the company dissolves. Banks will ask for it when you open a business account. Courts read it first if a dispute lands in front of a judge. Single-member versions are shorter, but still worth having in writing.
File the Articles of Organization With the State
You submit the Articles of Organization (called a Certificate of Organization or Certificate of Formation in some states) through the Secretary of State’s office. Most states have online portals that confirm receipt immediately and process faster than paper. Filing fees run from $35 to $500, with most in the $100 to $200 range. Approval typically takes anywhere from a few business days to a couple of weeks, and many states offer expedited processing for an extra fee.
Once approved, you’ll get a stamped or certified copy of the Articles back. That’s your LLC’s founding document. Banks, landlords, and licensing agencies will ask for it, so store it with your business records.
A handful of states also require newly formed LLCs to publish a notice of formation in a local newspaper. Where required, publication costs range from under $100 to over $1,000. Skipping this step in a state that requires it can prevent your LLC from being recognized as properly formed, so check your state’s rule before you assume you’re done.
Get an EIN for the LLC
After the state approves your LLC, apply to the IRS for an Employer Identification Number. The EIN is the business’s federal tax ID, separate from your personal ITIN, and you need it to hire employees, file business tax returns, and open a commercial bank account.
A lot of older guides say ITIN holders can’t use the IRS online EIN application and have to fax or mail Form SS-4. That’s no longer accurate. The IRS online EIN assistant accepts an ITIN as the responsible party’s tax ID, provided your principal place of business is in the United States or a U.S. territory.4Internal Revenue Service. Get an Employer Identification Number If you qualify, the number comes back at the end of the session.
If your principal business location is outside the United States, the online tool isn’t available. Submit Form SS-4 by fax or mail, entering your ITIN on line 7b (the responsible party). Fax applications typically produce an EIN within four business days; mail runs about four weeks.5Internal Revenue Service. Instructions for Form SS-4 (Rev. December 2025) International applicants can also apply by phone during IRS business hours.
Open a Business Bank Account
With the LLC formed and the EIN issued, you can open a business account. Expect to bring your Articles of Organization, EIN confirmation letter, operating agreement, a government-issued photo ID, and your ITIN. Multi-member LLCs generally need the EIN as the business tax ID; single-member LLCs may be able to use either the ITIN or the EIN depending on the bank.
Not every bank makes this easy. Some branches have limited experience with ITIN-based accounts, and you may need to explain that an ITIN is a valid IRS-issued tax identification number. Larger national banks and banks in areas with significant immigrant communities tend to be more familiar with the process. If one bank turns you down, try another. Online banks that serve business customers have expanded access too.
Federal Tax Filings You Can’t Skip
Forming the LLC is the easy part. Federal tax compliance is where foreign owners get hit hardest, and where the penalties are severe.
Form 5472 for Foreign-Owned LLCs
If you’re a foreign person who owns at least 25% of a U.S. LLC, the IRS treats your company as a foreign-owned reporting corporation. Even a single-member LLC that’s a disregarded entity for income tax purposes must file a pro forma Form 1120 with Form 5472 attached each year to report transactions between the LLC and its foreign owner.6Internal Revenue Service. Instructions for Form 5472 (12/2024) First-time owners often miss this because they assume a disregarded entity has nothing to file.
The penalty for failing to file a complete Form 5472 on time is $25,000 per form. If the IRS sends a notice and you still don’t file within 90 days, another $25,000 accrues for every 30-day period you remain noncompliant, with no cap.7Internal Revenue Service. International Information Reporting Penalties This is where professional tax help pays for itself.
Income Tax Returns
Nonresident aliens who earn income through a U.S. trade or business generally file Form 1040-NR.8Internal Revenue Service. About Form 1040-NR, U.S. Nonresident Alien Income Tax Return If your single-member LLC is a disregarded entity, the income flows through to you personally and lands on the 1040-NR. Multi-member LLCs taxed as partnerships file Form 1065 and issue a Schedule K-1 to each member, who reports the share on their own return. Resident aliens (those who pass the Green Card Test or Substantial Presence Test) file Form 1040 like any other U.S. tax resident and put the ITIN where the form asks for an SSN.
One Boundary: No S-Corporation for Nonresident Aliens
Federal law prohibits any corporation with a nonresident alien shareholder from electing S-corp status.9Office of the Law Revision Counsel. 26 U.S. Code 1361 – S Corporation Defined If you’re a nonresident alien with an ITIN, your LLC cannot elect S-corp taxation even if it otherwise qualifies. Resident aliens for tax purposes can hold S-corp shares and use an ITIN in place of an SSN on the election paperwork. The line is tax residency, not citizenship or ID type.
Keeping the LLC in Good Standing
Most states require LLCs to file periodic reports, usually annually or every two years, with a fee that ranges from $0 to several hundred dollars. A handful of states don’t require them at all. Miss the deadline and the state can administratively dissolve your LLC, which wipes out your liability protection. Reinstatement is more expensive and slower than staying current, so set a calendar reminder for your state’s date.
Watch your ITIN too. It expires after three consecutive years without appearing on a federal tax return. Owning a U.S. LLC usually creates a filing obligation that keeps the ITIN active, but if the business goes dormant or you skip a year, check the status before you need the number for something time-sensitive. Renewal is another Form W-7 and takes several weeks.
On beneficial ownership reporting: the Corporate Transparency Act originally required most LLCs to report their beneficial owners to the Financial Crimes Enforcement Network. As of March 2025, FinCEN issued a rule exempting all entities created in the United States from that requirement.10FinCEN. Beneficial Ownership Information Reporting A domestic LLC formed through a U.S. Secretary of State currently has no BOI filing obligation. Foreign companies registered to do business in a U.S. state still must file within 30 days of registration.11Federal Register. Beneficial Ownership Information Reporting Requirement Revision and Deadline Extension If you form a brand-new LLC domestically, the exemption applies; if you register a foreign-formed entity to do business here, you still report.