Lagos Tech Is Going Global — And the IRS Notices
Nigeria's tech ecosystem — from Yaba to Abuja — is producing world-class founders. More Nigerian startups are getting into Y Combinator, raising US VC money, and forming US entities. With a US entity comes US tax obligations — specifically Form 5472 and the need for an ITIN.
Nigeria has no comprehensive income tax treaty with the United States. US withholding rates (up to 30%) apply by default on US-sourced income. An ITIN is essential for IRS compliance and to file US tax returns to recover excess withholding.
Which Nigerian Founders Need an ITIN?
- Stripe Atlas founders — Atlas gives EIN; ITIN for Form 5472 is your responsibility
- Y Combinator applicants / alumni — YC typically requires a Delaware C-Corp; Form 5472 applies to foreign-owned LLCs; cap table documentation requires ITIN
- Wyoming LLC owners — common for freelancers and e-commerce; Form 5472 mandatory
- Angel/VC-funded Nigerian founders — IRS compliance is due diligence for investors
- App developers with US entity — Google Play + Apple Store royalties, US-source income
ITIN + Form 5472 — The Compliance Checklist
- ✅ US LLC or C-Corp formed
- ✅ EIN received (from IRS)
- ✅ ITIN obtained (from ITIN Plus — IRS CAA)
- ✅ Form 5472 filed annually (by April 15 or Oct 15 with extension)
- ✅ Mercury or Silicon Valley Bank account opened
- ✅ Stripe, Brex, or Ramp card activated
⚠️ $25,000 Penalty — No Grace Period for Founders
The IRS doesn't care if you're pre-revenue. A Nigerian-owned US LLC that misses Form 5472 gets an automatic $25,000 penalty. Investors doing due diligence will find this — it can kill a deal. Get your ITIN and file on time.
With the naira losing value, every dollar earned from US platforms is significant. Losing 30% to unnecessary IRS withholding — when an ITIN can eliminate it — is money Nigerians cannot afford to leave on the table.
ITIN · Investor-ready IRS compliance · IRS Certified CAA
Frequently Asked Questions
Do Nigerian Y Combinator founders need an ITIN?
If your US entity is a foreign-owned LLC, Form 5472 requires an ITIN. For Delaware C-Corps, ITIN may be needed for personal tax filings depending on compensation structure. Always get your ITIN as a foreign founder.
Does Stripe Atlas file Form 5472 for me?
No. Stripe Atlas forms your LLC and gets your EIN. Form 5472 filing and ITIN are your responsibility. Many Nigerian Stripe Atlas founders discover this too late.
How soon after forming a US LLC should I get an ITIN?
Immediately. Form 5472 is due by April 15 of the first tax year. If your LLC is formed in 2026, your first filing is due April 15, 2027. ITIN takes 8–14 weeks — don't wait.
How much does ITIN Plus charge?
$99 flat fee. All-inclusive.
Get Your US ITIN — $99 Flat Fee
Nigerian tech founders: get IRS-compliant before your next fundraise. $99 ITIN — IRS-certified, remote.
Apply Now → +1 (305) 216-6992apply@itinplus.com