How can an immigrant entrepreneur with an ITIN register a business in California?
Yes, you can register a business in California using your Individual Taxpayer Identification Number (ITIN). The state filing process accepts an ITIN in place of a Social Security Number (SSN) for business formation.
Here is a step-by-step guide to registering your business:
Step 1: Choose Your Business Structure
Decide if you will operate as a Sole Proprietorship, a Limited Liability Company (LLC), or a Corporation. An LLC is a popular choice because it provides personal liability protection. This choice affects your taxes, paperwork, and personal risk.
Step 2: Choose and Register a Business Name
If you are a sole proprietor using a name other than your own legal name, you must file a Fictitious Business Name (FBN) statement with your county clerk's office. For an LLC or corporation, you must ensure the name is available and register it by filing formation documents with the California Secretary of State.
Step 3: File Formation Documents
For an LLC, you must file Articles of Organization (Form LLC-1) with the California Secretary of State. For a corporation, you file Articles of Incorporation. These forms can be filed online or by mail. You can use your ITIN on these documents where a tax ID is requested.
Step 4: Obtain an Employer Identification Number (EIN)
You need an EIN from the IRS to hire employees, open a business bank account, and file federal taxes. Because the IRS online application requires an SSN, you must apply for an EIN by mailing or faxing Form SS-4 to the IRS. Leave the SSN field for the responsible party blank and write "ITIN" and your number instead.
Step 5: Fulfill State Tax Requirements
You must register your business with the California Franchise Tax Board (FTB) and potentially the California Department of Tax and Fee Administration (CDTFA) if you sell taxable goods. Be prepared to pay California's $800 annual franchise tax for your LLC or corporation, which is due shortly after registration and every year after.
Important Details and Nuances
Business registration does not grant you work authorization. An ITIN allows you to own a business and fulfill tax obligations, but you must have separate, valid work authorization from the U.S. government to be legally employed by your own company or perform labor for it.
Warnings and Limitations
Actively managing the day-to-day operations of your business without proper work authorization can jeopardize your immigration status. The $800 annual franchise tax is mandatory for LLCs and corporations, even if your business generates no income.
This is general information and does not constitute legal advice. For complex situations, you should consult with a qualified California business attorney and an immigration attorney to ensure compliance with all laws.
Disclaimer:
This information is for general guidance only and should not be considered as legal advice. Please consult with a qualified attorney for specific legal matters.
Views: 33
Updated: August 14, 2025
Immigration
Immigration laws, visas, and citizenship information
View All Questions