Technical Wednesday.
Hello, I’m Cr. Maximiliano Mira Salas, and this Technical Wednesday I want to tell you something fundamental if you are a freelancer, entrepreneur, or investor operating with the United States.
What is the ITIN?
✔️ It is the Individual Taxpayer Identification Number. Issued by the IRS for those who do not qualify for an SSN but have tax obligations in the U.S.
💡 Who needs it?
• Foreigners with income in the U.S.
• Partners in international companies.
• Investors seeking to benefit from tax treaties.
👉 Example: If you provide services to a company in the U.S., you need an ITIN to correctly file your taxes and avoid penalties.
What is the EIN?
✔️ It is the Employer Identification Number, necessary for any business that wants to operate formally in the U.S.
💡 What is it used for?
• Opening business bank accounts.
• Filing company taxes.
• Complying with IRS requirements.
👉 Key fact: If you are a foreigner, you must request it with Form SS-4 and send it to the IRS. The process can take a few business days.
🚨 Why is it important?
Without an ITIN or EIN, you cannot operate legally, and you could lose up to 30% of your income due to unnecessary tax withholdings.
📊 Practical example:
If you work as a freelancer and do not file Form W-8BEN, the IRS may automatically withhold 30% from you. Avoid this with the right strategy!
At Financers, we take care of everything for you:
✅ Obtaining ITIN and EIN.
✅ Complete tax filings.
✅ Tax optimization for international businesses.
Work peacefully and focus on your business.
If you relate to this or know someone who needs it, share this post.
