More Canadians than ever are forming US LLCs to access Stripe, US banking, and the American market. An ITIN is required to operate your US LLC correctly as a Canadian owner — specifically for IRS Form 5472, which all foreign-owned US LLCs must file annually.
Why Canadians Form US LLCs
Canadian entrepreneurs form US LLCs for several strategic reasons:
- Access to Stripe (requires US LLC + US bank + EIN)
- US dollar banking with Mercury or Relay Bank
- Selling on Amazon.com with a US seller account
- Accepting US credit card payments via Shopify + Stripe
- Creating a distinct US business entity for American clients
The Canada-US business relationship is the world's largest bilateral trading relationship, making a US LLC particularly valuable for Canadian entrepreneurs.
ITIN's Role in Your Canadian-Owned US LLC
When you form a US LLC as a Canadian national, you are a 'foreign person' in IRS terminology — even though Canada is right next door. Your LLC must file Form 5472 annually, and your ITIN identifies you as the Canadian owner on this form.
Without an ITIN, your Form 5472 cannot be correctly filed. The IRS automatically assesses a $25,000 penalty for failure to file Form 5472 — even if your LLC had zero income.
Delaware vs Wyoming for Canadian LLC Owners
Delaware LLC: Better if you plan to seek US investors or run a technology startup. Delaware's Court of Chancery is the gold standard for US business law. Annual cost: ~$300/year franchise tax + registered agent.
Wyoming LLC: Better if you want the lowest ongoing cost and maximum privacy. No franchise tax — only $60/year. Wyoming also has the strongest asset protection laws. Annual cost: ~$60–160/year total.
Full Setup Timeline for Canadian LLC Owners
Simultaneous steps:
- Apply for ITIN through ITIN Plus ($99, 8–14 weeks)
- Form US LLC through a registered agent (1–2 weeks)
- Get EIN from IRS (~4 weeks by mail, immediate by phone)
- Open Mercury or Relay Bank account (1–5 days after EIN)
- Set up Stripe (immediate after bank account)
Frequently Asked Questions
Do Canadian LLC owners need an ITIN?
Yes. As a foreign owner of a US LLC, your ITIN identifies you on IRS Form 5472 (annual filing required for all foreign-owned US LLCs) and for US bank account beneficial owner verification.
What is Form 5472 and why does it matter?
Form 5472 is an IRS informational return filed annually by foreign-owned US LLCs. Failure to file results in a $25,000 automatic penalty per year. Your ITIN is required to identify you as the Canadian owner on this form.
Can I use my Canadian SIN instead of an ITIN?
No. The Canadian Social Insurance Number (SIN) is not accepted by the IRS. You need a US-issued ITIN for IRS filings.
How long does it take to get an ITIN?
8–14 weeks from the IRS submission date. Apply through ITIN Plus for $99.
Is there an alternative to an ITIN for Canadian LLC owners?
No. An ITIN is the only Tax ID available to non-US persons who are individuals. Canadian LLC owners who are individuals must have an ITIN for IRS compliance.