Starting a business is not an easy task, with the many requirements and the resources required to keep the ball rolling. Things get harder when you want to start a business in the U.S but you are an immigrant. Cultural and language barriers may make the process more complicated than as you would expect in your country of origin. And what happens if you are not only an immigrant but an undocumented immigrant? Regardless of your immigration status, the truth is that you can start that dream business in foreign soil and comply with the law. There are thousands of undocumented entrepreneurs running successful businesses in the US today.
One of the first thing you have to consider as an immigrant is taxes: how do you file taxes when you are undocumented? Getting an ITIN is the best way to start doing things right and stay on the good side of the law. With this number, you can ensure that you never rub shoulders with the law as far as taxes are concerned.
ITIN stands for Individual Taxpayer Identification Number. The IRS issues this number to foreigners and individuals who are not eligible for a social security number. Application for this number can be done in different ways depending on what works for you. The process is quite straightforward and the fees are reasonable.
There are many advantages associated with getting an ITIN. For one, submitting taxes becomes much easier. This identification number also makes it easy for you to access a credit card and grow your credit limit. Even better, there are institutions that are willing to advance loans to ITIN holders with no SSN. Loans are advanced as long as they work to grow their credit scores and meet other minimum requirements.
When to apply for ITIN
As discussed above, an ITIN helps a great deal when it comes to filing taxes. If you earn any income in the US, failing to pay taxes will put you on IRS radar. When you are undocumented, the last thing you need is the IRS on your case as things can go south pretty fast. To avoid this, many undocumented business owners choose to get ITIN that make it possible to submit individual taxes and thus comply with the law.
Do you have an incredible business idea but you do not know how to go about the taxes? Well, you are not alone. This is something that many entrepreneurs would be struggling with. Let’s put ourselves in the shoes of Miguel Padilla, the owner of a thriving auto body shop. While he is happy with his business, he is worried about submitting his taxes. He has been for a couple of years in the US and doesn’t have a Social Security Number. He is well aware of the implications that nonpayment of taxes come with. With the way things are going in his auto body shop, he also thinks that getting a loan to expand his business could double his income in a year or two, but again, he has no credit history in the US and he knows that a solid credit score is a basic requirement among lenders.
So, can he pay taxes and also qualify for a loan? The short answer is yes. Everyone needs to pay taxes regardless of their status. It is also true that even undocumented people can qualify for credit? If you have enough proof of business ownership and have a good credit history, you can get that loan you need to boost your business.
The answer again is an ITIN. With an ITIN Miguel can start submitting taxes for his business. The application process is not hard and the whole system is quite efficient, so numbers are issued without discrimination. He can also apply for a credit card with the ITIN and concentrate on growing his credit score with an aim of getting a loan to grow his business in the near future. With a good credit score, he will surely qualify for a loan since some lenders extend loans to ITIN holders.
Application Steps for ITIN
Now that you know your immigration status should not hinder you from operating a business, you need to take the necessary steps to submit your ITIN application. If like Miguel Padilla, you are an undocumented immigrant who owns a business, you need to apply for an ITIN. Find out here the 5 Steps to Submit an ITIN Application. Here, you will also get more information about the benefits of an ITIN and some helpful tips on how you can use this number to your advantage both in the present and in the long-term. Do not let your dreams die because of your immigration status. The IRS got you covered as far as taxes are concerned.