If you are a non resident individual who has either set up, invested in or become a member of a US based LLC or LLP or LP, you will be required to file various information returns for the entity.
As part of this process all non resident members are required to have an ITIN for tax reporting of their share of income and expenses within the US entity
Once they receive their tax reporting documents, the ITIN is then needed for filing a 1040NR US tax return to report said share of income and expenses (this is reported on Schedule K-1 each year).
How soon should I apply for an ITIN?
As soon as you become a member would be the best time BUT if the entity is just starting and has limited or no income and expenses, then you could technically wait a while until it is formally required (Or if you file a 1040NR, the following year).
How can I apply for an ITIN if I am based in the United Kingdom or Europe?
You can use a certified acceptance agent like Just Breve. We assist many LLC/LLP/LP members and owners to obtain an ITIN. You will be required to provide the relevant supporting documents as part of the application process.
These documents are:
- the Employer Identification Number (EIN) of the entity
- the member or operating agreement listing you as member and showing your unit or % holding.
The above documents are to prove you are conducting business in the United States.
If the above documents are not readily available, they will need to be obtained prior to any application being submitted. OR if the 1040NR US tax return for you has been prepared, this will be attached and paper filed with the application instead.
Please note - if you are a non resident and the EIN has not been obtained, you will need to obtain this first. As you do not have a US tax identification number, this can only be obtained by mail or fax (not electronically).
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