The very first requirement for business credit is an EIN (Employee Identification Number).
You can easily get an EIN from the IRS website for free! There’s absolutely no reason you should pay a service to get an EIN as it literally takes a few minutes to successfully apply and obtain for an EIN for your business.
Whether your business is a corporation, a LLC or a sole proprietorship, as long as you have the necessary information, the process is quick, simple and painless.
You would want to talk to a CPA to get some advice on tax implications if you’re an established businesses or if you already have business income.
This is NOT tax advice. This is a guide on navigating the IRS website to apply for an EIN.
What is an ITIN?
An Individual Taxpayer Identification Number (ITIN) is a tax processing number issued by the Internal Revenue Service (IRS). It is a nine-digit number that always begins with the number 9. IRS issues ITINs to individuals who are required to have a U.S. taxpayer identification number but who do not have, and are not eligible to obtain a Social Security Number (SSN) from the Social Security Administration (SSA).
For our Canadian visitors, it’s the equivalent of a SIN or Social Insurance Number.
Who needs an ITIN?
IRS issues ITINs to foreign nationals and others who have federal tax reporting or filing requirements and do not qualify for SSNs. A non-resident alien individual not eligible for a SSN who is required to file a U.S. tax return only to claim a refund of tax under the provisions of a U.S. tax treaty needs an ITIN.
- A nonresident alien required to file a U.S. tax return
- A U.S. resident alien (based on days present in the United States) filing a U.S. tax return
- A dependent or spouse of a U.S. citizen/resident alien
- A dependent or spouse of a nonresident alien visa holder
How do you get an ITIN?
You will need submit your application (Form W-7), along with supporting documents to the IRS to be issued an ITIN.
Can I work in the US with an ITIN?
No! An ITIN is not a SSN (social security number)