[mysticav]

I'm From Tijuana, Mex. (at the border with San Diego, CA) and I want to open a Business in San Diego, CA.

I have US passport, and as many of you know, for Tijuana People, San Diego is our second hometown. The reason I'm telling you this is for let you know that I have total access to US, so I can visit government tax offices, etc. In case I need to be physically present.

Anyway, I've been looking around, doing some research about this topic, and as far as I've been reading, In order to open an LLC with Federal Tax ID (EIN), I need a ITIN or SSN.

Of course, getting a SSN is not feasible.
So, my only hope is to get the ITIN, and then apply for the LLC.

Do I need to fill the W-7 form ?
Where? Online?
Can somebody help me to fill it ?

Any guidance will be very helpful.

[wnhough]

QUOTE," In order to open an LLC with Federal Tax ID (EIN), I need a ITIN or SSN.Of course, getting a SSN is not feasible."----I bet your question carries a variety of compex issues;much of the answer depends on whether the LLC is electing to be treated as a partnership(?) or as a corporation(?). This can make a HUGE difference in your case. Also, it is important to know what the LLCs do, what business they're in, how much income they derive from within the US. The mere fact that the sole member is a foreign individual may play absolutely no role depending on the specific facts. I believe that rules of international tax are very complex.Even I guss most lawyers have no clue how to work these problems. You need to find an attorney.

"In order to open an LLC with Federal Tax ID (EIN), I need a ITIN or SSN."----An ITIN can't be used as legal identification nor can it be used to set up your own business in the United States. An ITIN is issued to people (mostly foreign nationals) who have to pay taxes or file returns with the IRS but who don't have a Social Security Number.

"Do I need to fill the W-7 form ?Where? Online?"---Yes. Use the latest revision of Form W-7, Application for IRS Individual Taxpayer Identification Number to apply. Attach a valid federal income tax return, unless you qualify for an exception, and include your original, notarized, or certified proof of identity and foreign status documents.
Please visit the website to download the form; http://www.irs.gov/pub/irs-pdf/fw7.pdf
General ITIN Information
You fill out your tax return as filing jointly and submit that together with the W-7 to:
Internal Revenue Service
ITIN Operation
P.O. Box 149342
Austin, TX 78714-9342

"Can somebody help me to fill it ?"----I think that you can fill it out for yourself.

[mysticav]

Thanks for your help and light.

The LLC would operate entirely in USA. We are 2 owners, so it should be treated as a Partnership.
International tax should not be an issue because we are planning to sell in USA and pay full taxes in USA, as a normal US citizen does.

"An ITIN is issued to people (mostly foreign nationals) who have to pay taxes or file returns with the IRS but who don't have a Social Security Number. "

Isn't that my case ? I don't have a SSN, so it seems that the ITIN is my only alternative to finally be able to apply for the Federal Tax ID.

Basically, I need to know what do I need in order to get the Federal Tax ID as a foreigner.
Is ITIN my only alternative ?

From the IRS.gov site I get this:
"How do I know if I need an ITIN?
If you do not have a SSN and are not eligible to obtain a SSN, but you have a requirement to furnish a federal tax identification number or file a federal income tax return, you must apply for an ITIN."

But the problem is that one of the requirements is to have a valid federal tax return. So, what came first, the egg or the chicken ? :

"How do I apply for an ITIN?
Use the latest revision of Form W-7, Application for IRS Individual Taxpayer Identification Number to apply. Attach a valid federal income tax return, unless you qualify for an exception, and include your original, notarized, or certified proof of identity and foreign status documents."

Can I open an LLC an operate without Tax ID, and then apply for the ITIN -> TAX ID ?

[wnhough]

QUOTE," so it should be treated as a Partnership"---Ok Then it is not LLC but it is LLP.

"International tax should not be an issue because we are planning to sell in USA and pay full taxes in USA, as a normal US citizen does."--- "As a normal US citizen does(?)",what I am saying is that as you can see, US citizens, resident alien ( Either under the US Tax code or US INS rules) MUST report both their world-wide income (even the income on which you paid the taxes in the foreign country) and US souce income( assuming you are USperson.). Your LLP doesn't pay taxes , but you , as one of the partners need to pay tax on your distributive share( I mean your share of taxable profits of the LLP) in the LLP( basis) generated in the US and foreign source income. But I do not know if you are a resident alien( under either US tax Code or US INS rules).

"Basically, I need to know what do I need in order to get the Federal Tax ID as a foreigner.is ITIN my only alternative ? Can I open an LLC an operate without Tax ID, and then apply for the ITIN -> TAX ID ? "---No. In the US, every new business needs its own tax ID number, EIN. To get a federal tax ID number, you must fill out IRS Form SS-4( or by telephone at 1-800-829-4933) . And you can either mail or fax it to the IRS office indicated in the Instructions to Form SS-4. There is no fee.Once the IRS issues you a number, you will have to get a tax ID number from each state in which you have a business address. This will involve filling out a state form (which will look suspiciously like the SS-4) and paying a small filing fee.
To set up a federal tax ID number (also called an Employer Identification Number, or EIN), contact your nearest Local IRS Field Office or You can also apply online for an EIN via the IRS web site.
For further info on EIN, Tax ID, please visit the website: How to Apply for an EIN
Available from the IRS Web site at Internal Revenue Service --click on "Forms and Publications"