Hi, I am a Canadian citizen, residing in Canada and have partnered with 3 US citizens/US residents to form LLC based in California. We are working as a SaaS developer, with nil earnings, to date. Do I need a US tax ID number immediately? I’m confused by the statement only needing to send in the Form W7 when actually submitting a tax return. I’m also concerned does one actually needs to mail their Passport to the IRS offices?
It is not advised to directly invest in LLC, as it can end up in double taxation. To limit your liability and avoid being double-taxed, there are specific cross-border structures for Canadians that are better. The only way you can get an ITIN is by attaching form W7 to a US tax return (e.g., 1040-NR). A certified copy of your passport (available from any Passport Canada office) should be attached to form W7.
