US EIN and ITIN
EIN for American LLC
What is an EIN and how do you get one?
The EIN is the only mandatory gateway to opening a bank account in the US, since taxes and accounts are closely linked in the US, and no entity or individual can operate an account without first obtaining a verified EIN. The EIN must include your first and last name on the IRS-approved application form, regardless of whether you opened the LLC anonymously. This is because the bank must identify the account's ultimate beneficiary and the account manager, and it does so by ensuring the IRS matches the first and last name on the EIN document.
EIN is equivalent to the VAT number of your LLC
Although an EIN is a company's tax identification number, it must be requested by the company's administrator, even if only as a manager and not a member. Having an EIN does not mean your LLC can or must pay taxes in the future. Since an LLC is owned by a nonresident alien, if it does not physically operate in the US and does not offer services to US residents and citizens, it operates under a zero-tax privilege. Therefore, an EIN does not mean you have to pay taxes in the US, but it does require you to keep annual accounts for your LLC.
When you first receive an EIN number, the IRS sends you an EIN Confirmation Letter (CP 575).
If you have your EIN number online (you can get it if you have your ITIN, see below), you can download CP 575 online. If you received your EIN number by mail or fax, the IRS will send you a CP 575 (it is sent to the address you listed on items 4a and 4b of Form SS-4; it takes 4-6 weeks to arrive)
Some people lose their EIN confirmation letter CP 575 and need an official copy of their LLC's EIN number for things like opening a bank account for the LLC. The IRS only issues the EIN confirmation letter (CP 575) once. You cannot receive this letter again. In fact, the "CP" means the letter was automatically generated by a computer. So, even if you call the IRS, no one can recreate the CP 575. However, there is good news. You can still get an official "EIN letter" from the IRS. It's just not called an EIN confirmation letter (CP 575). Instead, it's called an EIN verification letter (147C). The CP 575 and 147C are technically different letters, but they are both official letters from the IRS and can be used for all business matters.
The only way to obtain an EIN (147C) verification letter is to call the IRS at 1-800-829-4933. For security reasons, the IRS will never email you an EIN (147C) verification letter. Instead, the IRS will send you an EIN (147C) verification letter in two ways:
- by mail
- by fax (you can use a real fax or a digital/online fax)
In addition to opening your LLC with an EIN, you will probably be interested in creating a life insurance policy on your tax status by taking a second tax residence in a country with territorial taxation, such as a residence in Panama or a residence in Paraguay.
Studio Panama Italia offers the ability to handle EIN requests quickly.
ITIN, stands for Individual Taxpayer Identification Number
An ITIN, or Individual Tax Identification Number, is a tax processing number available only to certain nonresident and resident aliens, their spouses, and dependents who are ineligible for a Social Security Number (SSN). The ITIN is a 9-digit number, starting with the number “9,” formatted like an SSN (NNN-NN-NNNN). The ITIN is for nonresidents who must file a tax return due to taxable income (such as certain scholarships) but are not eligible for a Social Security Number (SSN). The ITIN does not help build a credit score, as it is built with the default SSN that U.S. banks assign to all nonresidents who open accounts: 000-00-0000 – 100-00-0000.
Who needs a US ITIN?
A US ITIN is required for those who need to: Open PayPal USA, Open Stripe, Amazon FBA. Your ITIN allows you to apply for mortgages, mortgages, and loans from banks, including commercial banks. It is required to rent property and offices in the US, finance a car or commercial vehicle, and many other purposes.
You can still apply for an ITIN for any reason you deem appropriate, so you can contact us and get your ITIN online without having to travel to the United States. Opening a PayPal account for yourself, but in the US, you require an ITIN. Opening a Stripe account often also requires an ITIN.
Paypal Credit, provides after a certain amount of use of the platform the possibility of obtaining credit from Paypal up to USD 500,000 if you have an ITIN.
Credit bureaus don't use your ITIN as a credit identifier, but you may be able to use it to apply for a line of credit. In practice, credit card issuers allow you to apply for a credit card with your passport or other government-issued identification. In rare cases, this may be useful if you have an LLC and want a line of credit with the LLC, but the downside is that the LLC ceases to be anonymous to the government and IRS. Business owners who have incorporated or are planning to incorporate a U.S. company should have their own U.S. tax processing number issued by the Internal Revenue Service (IRS) for federal tax filing and tax compliance purposes. This is called the EIN. Many people prefer, for local taxation or other personal reasons, to obtain a U.S. ITIN for nonresidents. One type of taxpayer identification number issued by the IRS to individuals is the Individual Taxpayer Identification Number (ITIN).
An Individual Taxpayer Identification Number (ITIN) is issued by the IRS to individuals who:
Do not have an SSN and are not eligible to obtain one, and
Are required to provide a Federal Taxpayer Identification Number (ITIN) or file a Federal Tax Return, and
Fall into one of the following categories:
Nonresident alien who is required to file a U.S. tax return through an ITIN
U.S. resident alien who (based on days of presence in the U.S.) files a U.S. tax return and applies for an ITIN
Dependent or spouse of a U.S. citizen/resident alien
Dependent or spouse of a nonresident alien visa holder
Nonresident alien claiming a tax treaty benefit, which is obtained through an ITIN
Nonresident alien student, professor, or researcher filing a U.S. tax return or claiming an exception
If you fall into one of the above categories, we can process your American ITIN for Italians via the IRS. Contact us and request our certified American ITIN for Italians service as soon as possible, as the IRS receives so many requests that it can take up to four months to obtain one.
In any case, if you wish to obtain an ITIN, you would need to physically validate your passport in the USA. However, we at Studio Panama Italia, through our local company registered as an IRS Acceptance Agent, can validate your passport directly online and provide you with the ITIN number directly online without traveling to the USA.
How to get a US ITIN
To obtain an American ITIN you need:
Send us a color copy of your passport. Proof of tax residency from any country you live in (utility bill). Issue a payment of USD 490.
Please wait approximately 3 months to receive it via email and fax. Download and complete the document below to apply for an American ITIN for Italians
Questions and Answers about EIN and ITIN
What is a US EIN used for?
An American EIN is used to provide a VAT number to your American LLC, and allows your American company to open physical and online bank accounts in the United States and to open business accounts with Wise Business, Stripe, and PayPal Business (Paypal now also requires a personal ITIN)
How do I get an EIN for my LLC?
Get it online with Studiopanamaitalia.com. Contact us and request a VAT number for your US company online
What is an ITIN, also called TIN, for?
The American TIN is used by a specific class of taxpayers who are non-residents of the United States or who are eligible for American scholarships and therefore cannot obtain an SSN. In practice, it is a tax code that must be obtained whenever a US SSN cannot be obtained.
The ITIN is also used to open personal accounts on Paypal USA, or to open Business Paypal accounts for your American company such as LLC, as Paypal requires both the Corporate EIN and the personal tax code of its beneficiary.
It could also be used to get corporate credit and credits from paypal credit or amazon credit.
TIN allows you to defer payments on Klarna, Afterpay, Affirm, Scalapay.
What is Form W-7?
Form W-7 is the required IRS form when applying for your U.S. ITIN or TIN. Don't worry, we'll complete the tax questionnaire for you when you purchase your ITIN with us
What is the US TIN?
The US TIN is the American ITIN. It's a shortened form of the name.
How do I get an ITIN?
You may have wondered how to apply for a US TIN. You can obtain your American ITIN online with an official IRS Acceptance Agent in collaboration with Studiopanamaitalia.com, directly online by requesting it at info@studiopanamaitalia.com or via WhatsApp at +1-786-6238177.
