Are you a business owner in the US but your immigration status is still in limbo? As a business owner, you have taxable income and must submit a tax return. Not only it’s mandatory, but reporting your taxes can bring you some additional benefits. The problem is, you need a Social Security Number to report your taxes. And you are aware there’s no way you’ll qualify for a Social Security Number. You find yourself trapped in the classic situation of a snake biting its tail. How can you comply with the law and submit your taxes without a Social Security Number?
The IRS has already addressed the same issues that concern you. The governmental agency created the ITIN program in 1996. The IRS provisioned a substitutionary number called ITIN which stands for “Individual Taxpayer Identification Number.” With this number, undocumented immigrants can own small businesses in the US, pay taxes, and apply for loans—legally. The Internal Revenue Service issues the tax processing number to individuals who are “nonresidents or resident aliens” as well as their spouses and dependents. The ITIN does not prove that you’re a US citizen nor does it establish that you are in the country legally. However, the number does help you take steps toward building a financial future in the United States.
Like You, a Latino Small Business Owner Has Questions
In this hypothetical example, Santiago doesn’t have a social security number. He’s been in the US for a few years and now is the owner of an auto repair shop. He has developed a client base of regular customers and would like to grow his business even more. He realizes the IRS requires that he submits a tax return to report income from his business. However, what will happen to his immigration status if he does the right thing? Another concern weighing on his mind is that his business would prosper even more if he applies for a business loan, but again, will he meet the requirements because of his immigration status? How can he build a credit history unless he borrows money and pays it back? He feels like he’s stuck inside a revolving door with no way out. Fortunately, the answer to his many questions is simple.
Santiago Needs to Apply for an ITIN
Without a doubt, Santiago must prepare his taxes to abide by regulations set forth by the Internal Revenue Service. If he doesn’t, there will be consequences. Likewise, he can open a bank account if he doesn’t have one, apply for a small business loan, and start building a credit history. Santiago may still be on the fence, but without an ITIN, he can only wonder about achieving his financial dreams. So how does he get the number? How long does it take and what are the requirements? What he doesn’t understand is that getting an ITIN is not hard. In fact, it only takes 5 easy steps to apply for the individual taxpayer identification number.
Applying for an ITIN Is Straightforward and Easy
If you are like Santiago, an undocumented immigrant who owns a small business, you need to apply for an ITIN as soon as possible. To help you navigate through the process, this article called 5 Steps to Submit an ITIN Application provides step-by-step instructions. You’ll find out what documents you need to have on hand and how to download the application which is available in both English and Spanish. The article details the benefits of having an ITIN and how to apply for a business loan. Most of all, you’ll gain peace of mind knowing that the IRS makes the ITIN readily available. So what are you waiting for? Click on the above link to the article and discover how easy it is to apply for an ITIN.