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Hi, Im a Canadian, living in Canada and have partnered together with 4 US citizens/US residents to form a LLC based in California. We are a SaaS developer, with no earnings, to date. Do I need a US tax ID # now? 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 need to mail their Passport to the IRS offices??
Thank you!
Do not directly invest in a LLC, otherwise you will be double taxed. There are specific cross border structures that are better for Canadians that limit your liability and avoid double taxation. 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.