- You own a U.S. LLC and live outside the United States
- Shopify Payments, Stripe or PayPal asks for the owner’s SSN or ITIN
- Your LLC has inventory, staff or an office in the U.S.
The situation
“Every platform stopped at the same screen: owner’s SSN or ITIN. Once the number arrived, all three were verified in a week.”
Tom sells camping gear from Melbourne through a Shopify store and Amazon. In 2023 he formed a single-member Wyoming LLC, got an EIN and moved inventory to a third-party warehouse in Dallas. He also paid a part-time customer-service rep who worked from Austin.
When he tried to switch his store to Shopify Payments and open Stripe and PayPal business accounts under the LLC, all three stopped at identity verification: the beneficial owner needed an SSN or ITIN. Tom had neither, and a forum post told him the IRS would not issue an ITIN “just for Stripe.” That part was true.
Application path
- W-7 reason
- Reason b — nonresident alien filing a U.S. federal tax return
- Filed with
- Form 1040-NR for tax year 2024
A U.S. employee and U.S.-held inventory meant the LLC’s profit was effectively connected with a U.S. trade or business. Because the LLC is disregarded, that income flows to Tom personally and he must file a 1040-NR. That filing obligation, not the payment platforms, is what qualifies him for an ITIN.
Documents
- Valid Australian passport (for the live video interview)
- LLC articles of organization and EIN confirmation letter (CP 575)
- 2024 profit and loss statement and warehouse invoices
- Payroll records for the Austin support rep
- Form W-7 with Reason b checked
- Form 1040-NR with Schedule NEC and effectively connected business income
- Pro forma Form 1120 with Form 5472 for the LLC
- Form W-7 (COA) Certificate of Accuracy signed by our CAA
Timeline
- Day 1Eligibility call. We confirmed the ECI filing obligation before taking payment.
- Day 4Tom sent the LLC documents, P&L and payroll records.
- Day 6Live video interview; passport reviewed and certified.
- Day 9W-7, COA, 1040-NR and pro forma 1120/5472 mailed to the IRS by tracked courier.
- Week 10CP565 notice issued with Tom’s ITIN.
- Week 11Shopify Payments, Stripe and PayPal business verification completed.
Issues we solved
Tom first asked us to file a W-7 with only the Form 5472, because that was the form his formation agent had mentioned.
Form 5472 is filed with the LLC’s EIN and is not a basis for an ITIN. We reviewed his operations, identified the effectively connected income, and filed under Reason b with the 1040-NR instead.
The Form 5472 for 2023 had never been filed, which carries a $25,000 penalty per missed form.
We referred Tom to a tax preparer who filed the late 2023 form with a reasonable-cause statement before the new package went out.
Outcome
The ITIN arrived in ten weeks. Tom entered it as the beneficial owner’s taxpayer number and all three platforms cleared verification within a week. His Amazon seller identity check, which had been pending for two months, cleared the same week.
His ITIN stays active as long as he files a 1040-NR at least once every three years, which his business now requires annually.
Questions people in this situation ask
No. The IRS issues ITINs for a federal tax purpose, such as filing a return or claiming a treaty benefit. Platform verification is a benefit of having one, not a reason to apply.
No. A single-member LLC with no U.S. trade or business only files a pro forma 1120 and Form 5472 under its EIN. The owner needs an ITIN when they personally have a U.S. filing requirement.
No. Our CAA reviewed it in a live video interview and sent a certified copy with the Certificate of Accuracy.
IRS sources
- Instructions for Form W-7 (Rev. December 2024)
- Publication 4520 — Acceptance Agents’ Guide for ITIN
- Publication 519 — U.S. Tax Guide for Aliens
- About Form 5472
This is a representative case. Names and personal details are illustrative; the IRS rules, forms and calculations reflect tax year 2024. It is general information, not tax advice for your situation.