Can an undocumented immigrant start a business or form an LLC?

Yes. There is no federal law preventing undocumented immigrants from forming a business entity or owning a business. You can form a sole proprietorship, LLC, or corporation using your ITIN. The LLC formation is filed with the state — states do not require immigration status verification. After forming your LLC, you can apply for an EIN (Employer Identification Number) from the IRS using your ITIN.

Can I open a business bank account with an ITIN and EIN?

Yes. Once you have an EIN, most banks will open a business bank account using the EIN plus your ITIN and passport as the owner's ID. Some banks are more ITIN-friendly than others — credit unions and community banks that serve immigrant communities are often the most accommodating. Avoid banks that require a personal SSN from all business owners.

How to Start a Business or LLC With an ITIN (2026 Guide)

Q: What is an EIN and do I need one?

An EIN (Employer Identification Number) is a federal tax ID for your business — like an SSN, but for a business entity. You need an EIN to open a business bank account, hire employees, file business taxes, and accept payments as a formal business. You apply for an EIN from the IRS using Form SS-4. ITIN holders can get an EIN by applying by mail or fax (not online), listing their ITIN as the responsible party's tax ID.

Last updated: April 27, 2026
By Miguel Garcia

Yes, You Can Start a Business

No federal law prevents an undocumented immigrant from owning a business or forming an LLC. Business formation is handled at the state level — and no state requires proof of immigration status to file for an LLC or register a business name.

Millions of ITIN holders run legitimate businesses across the U.S. — as freelancers, contractors, food vendors, cleaners, drivers, construction workers, and more. Formalizing that work as an LLC provides legal protection, better access to banking, and a professional structure for contracts and clients.

ITIN → EIN: the key step

Your ITIN is your personal tax ID. Once you form a business, you'll also need an EIN — your business's tax ID. You use your ITIN to apply for the EIN. After that, the EIN is what you give to banks, clients, and the IRS for all business purposes.

Sole Proprietor vs. LLC — Which to Choose

Structure	Setup	Liability Protection	Best For
Sole Proprietorship	None required — you just start working	None — personal assets at risk	Very small, low-risk work (freelancing, cleaning, etc.)
LLC (Single-Member)	File Articles of Organization with the state (~$50–$500 fee)	Yes — separates personal and business liability	Most small businesses; anyone with clients or contracts
LLC (Multi-Member)	Same as above, plus an Operating Agreement	Yes	Businesses with multiple co-owners

For most ITIN holders starting a business, a single-member LLC is the right choice. It costs $50–$500 to form (varies by state), protects your personal assets from business debts, and is taxed the same way as a sole proprietorship — all business income flows through to your personal tax return filed with your ITIN.

Complete Step-by-Step Guide

1Get your ITIN if you don't have one. Your ITIN is your personal tax ID and the foundation for everything that follows. How to apply for an ITIN →
2Choose your business name. Check your state's Secretary of State website to confirm the name is available. Most states have a free name search tool online.
3Form your LLC with the state. File Articles of Organization (sometimes called a Certificate of Organization) with your state's Secretary of State office. Filing fees range from $50 (Kentucky) to $500 (Massachusetts). Most states allow online filing. No immigration status verification is required.
4Apply for an EIN from the IRS. File Form SS-4 by mail or fax — ITIN holders cannot use the online EIN application. On the form, list yourself as the responsible party and enter your ITIN in the SSN field. The IRS will issue an EIN regardless of immigration status. Processing by mail takes 4–6 weeks; fax takes about 4 business days.
5Open a business bank account. With your EIN, LLC formation documents (Articles of Organization), and your ITIN + passport, open a separate business checking account. This is essential for keeping business and personal finances separate — and for professionalism with clients. Best banks for ITIN →
6File your taxes as a business owner. LLC income is reported on Schedule C of your Form 1040, filed with your ITIN. You'll also pay self-employment tax (15.3%) on net business income. Keep receipts for all business expenses — they reduce your taxable income. How to file taxes with ITIN →

Getting an EIN Without an SSN

The EIN application process is the most common point of confusion for ITIN business owners. The IRS's online EIN tool requires an SSN — but you can get an EIN by applying by mail or fax using Form SS-4.

On Form SS-4:

Line 7a (responsible party's name): your full name
Line 7b (responsible party's SSN/ITIN/EIN): enter your ITIN
Line 9a: check "Limited liability company"
Line 10: the date you want the LLC to be effective

Mail to the IRS address listed in the Form SS-4 instructions for your state. Faxing to the IRS is faster — look up the correct fax number for your state in the SS-4 instructions. There is no fee for an EIN.

⚠️ One EIN per responsible party

The IRS limits each responsible party to one EIN per day and generally one per business. Do not apply for multiple EINs — you only need one per LLC. If you form a second business, you can apply for a second EIN at that time.

Business Banking With an ITIN

Once you have an EIN, opening a business bank account is straightforward at banks that serve immigrant communities. Bring:

Your EIN confirmation letter from the IRS
Your LLC Articles of Organization (the formation document from your state)
Your ITIN
Your passport or foreign government-issued photo ID
Proof of U.S. address (utility bill, bank statement, lease)

Credit unions — especially those with a Juntos Avanzamos designation — and community banks are typically the most accommodating for ITIN business banking. Some online banks also accept EIN + ITIN for business accounts.

Frequently Asked Questions

Can an undocumented immigrant start a business or LLC? +

Yes. No federal law prevents undocumented immigrants from owning a business or forming an LLC. States do not verify immigration status during business registration. You can form a sole proprietorship or LLC, get an EIN from the IRS using your ITIN, and operate a legal business.

What is an EIN and do I need one? +

An EIN is your business's federal tax ID number. You need it to open a business bank account, file business taxes, and accept payments professionally. ITIN holders get an EIN by mailing or faxing Form SS-4 to the IRS with their ITIN as the responsible party's ID. It's free and the IRS does not check immigration status.

Can I open a business bank account with an ITIN? +

Yes, with an EIN. Once you have your EIN and LLC formation documents, most credit unions and community banks will open a business account using EIN + ITIN + passport. Juntos Avanzamos credit unions and ITIN-friendly banks are your best starting points.

Does owning a business affect my immigration status? +

Owning a business does not by itself affect your immigration status. Most ITIN owners operate as sole proprietors or LLC members — self-employment, not employment — and report income on their personal tax return with their ITIN. Consult an immigration attorney if you have concerns specific to your situation.