ITIN

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  • When or in what cases would I need to have an ITIN?

    ITIN is needed when someone (someone here means a foreigner like an Indian) who does not have the right to get the Social Security No. in the US wants to file taxes in the US.

    For example:- you're a performing artist who comes over here (a couple of times a year), do the stage shows and make some money or earn some money and now you want to file some taxes, in that case, you have a right to request for an ITIN. So, ITIN is only issued when you intend to file the taxes and the application for ITIN No. is 'W7 application' and it is only filed along with the individual person's income tax return.

    You'll also need an ITIN number to get your money back from a local vendor who is withholding taxes for which you must file an individual tax return.

  • If I own a single-member LLC in the US, do I have to file a tax return for the LLC (my company)?

    Single-member LLCs in the US are considered sole proprietorships. If you own a single-member LLC in the US then you are not required to file the tax return for the LLC. All profits and losses must be reported to the IRS in Schedule C when you will file your personal tax return on 1040. Now, if you are claiming losses in your personal tax returns but have not filed LLC's tax returns, then if IRS finds it out then it can come back at you to file LLC's returns on the backdate.

    NOTE:
    1. filing personal tax returns mean that you have an ITIN number in the US.
    2. If you have a single-member LLC and not filing tax returns in the US, then the possibility of getting an L1A visa to come to the US to work for your company is zero. This means that for L1A filing tax returns in the US is very important if you plan to come to the US to work for your company and get a green card in the future.

  • If I, with ITIN, file tax returns in the US, would my Indian income be taken into account?

    Yes, but it also depends on how the business is structured, even if you include your Indian income, you may receive a potential tax credit for all taxes paid in India. As a result, you avoid paying double taxes. However, depending on how the business is structured, you may not need an ITIN number. For example, if you have a C corporation and are not making any money or have any distribution, you are not required to file taxes.