Francesco decided to take the adventure of a lifetime: becoming an entrepreneur abroad.
After many considerations, he realized it’s what he’s always wanted, so he decided to leave everything behind and get started. As a pastry chef, he knew he wanted to open a bakery like the one his grandmother used to have.
He now runs a successful one in the USA, but he doesn’t have a social security number (SSN). He has taxable income and needs to file a tax return but doesn’t know what to do.
If he doesn’t submit a tax return and pay taxes, he’s concerned this will negatively affect his immigration status. Many other foreign entrepreneurs face this same dilemma: they have no legal status as residents, but as owners of businesses, they know they need to pay taxes.
There’s a simple solution: he needs to file an ITIN application.
The nine-digit number referred to as “Individual Taxpayer Identification Number” is assigned to foreigners who haven’t obtained lawful status in the US. The number allows you to legally submit your tax return along with any tax you may owe.
The ITIN doesn’t prove legal residence but does offer benefits. Let’s see how it worked out for Francesco.
Working in the USA without having a social security number is a common concern among immigrants. When Francesco immigrated to the USA, he was excited about building a new future, starting a business, and earning income for himself and his family.
He has built up a reputable business in a short time but is worried about paying his taxes. He doesn’t want to tarnish his relationship with the government especially if not paying taxes affects his legal status.
Even though his bakery is doing well, he already knows he needs to borrow money to purchase more equipment, tools, and supplies. Unless he can gain access to cash, his business revenue could decline quickly.
Not having a social security number weighs on his mind. How can he submit his taxes without one?
Because he needs to apply for a loan, Francesco doesn’t see any way to meet a lender’s requirements. He knows he needs to establish a personal and business credit score before a bank can approve a loan.
These concerns make him feel overwhelmed until a friend tells him to file an ITIN application. Francesco had no idea the number even existed and is relieved to find out there’s a solution for his predicament.
By having an ITIN, Francesco can pay his taxes, open a bank account, build a credit score and apply for a loan. Plus, in five simple steps, he can apply for an ITIN and have the number in as little as six weeks.
The process involves filling out a designated form, providing required documents, and submitting the form. It’s even possible to submit his tax return when he completes the ITIN application. That’s because the IRS has simplified the process so it’s easy to file your tax return when you fill out the application.
This takes the stress off of immigrants who are employed gainfully in the USA. If you’re in a similar situation, you probably are relieved too.
If you’re an immigrant without an SSN number, now you know what to do when you work and need to pay taxes.
It’s normal to be concerned about this process but the steps are straightforward and simple.
By finding out how to complete the application, you’re one step closer to earning income and building a life abroad minus the worry.
The adventure of a lifetime is waiting for you too. Why should you wait one more day?
To read more on topics like this, check out the lifestyle category.