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I wrote a tutorial how to get ITIN if you are not US citizen https://coderwall.com/p/nmrosg
Although, in our case, the receivers of the equity are individual salaried employees of our company, not sole proprietors. However, this seems like worth exploring so I'll take it up with a tax consultant.
I think you mean an 83b election, which is what applies to income tax treatments for vesting schedules. You should be issuing everyone on your team stock options which do not require an 83b election. You can't issue incentive stock options (ISOs) to non-US citizens but you can issue them non-qualified options (NSOs). 83b elections only become a problem for people where you grant them actual shares which they vest in…
> 83b elections only become a problem for people where you grant them actual shares which they vest in over time which is only common for founders.
All equity we are planning to issue has a vesting schedule attached. My understanding is that it's uncommon it issue equity that doesn't have a vesting schedule attached and it's true for all employees and not just founders. Vesting is indeed at the core of this problem.
Regarding the board setting the strike price -> Someone on the board 'must have some reasonable experience' setting the strike price for it to be reasonable for IRS to believe. I'm the only one on the board so far so unfortunately for us, we don't have anyone with this experience.
Cannot you get a tax id as a non resident alien? I know that if you hold USA shares outside the USA you can get a tax Id by filling in the w-8 ben forms (to avoid double taxation on dividends)
You can get an SSN as a non resident alien. I did, when I working there for a summer on a J1 visa.
Cannot you get a tax id as a non resident alien? I know that if you hold USA shares outside the USA you can get a tax Id by filling in the w-8 ben forms (to avoid double taxation on dividends)
Also, in our case, the problem will exist only if the beneficiary happens to be in the US at the time of these options vesting and liquidating due to a company sale/IPO. At that point, they can't make an 83b election so will end up paying much higher taxes.
Get them Individual Taxpayer Identification Numbers, which will take about six weeks. The form you want is a W-7. You can probably file the 409a elections and fill in the SSN of "non-resident alien; W-7 pending" if that is time-sensitive.
Sorry I mixed up 409a with 83b. I meant 83b. At one point, anyone on visas other than business/visitor could file for SSN or a Tax ID. That's no longer possible unless: 1) You are in the US on a legitimate Visa that allows you to work & 2) You have an offer letter for paid employment. Now students on F1 visa (who are allowed to work part time on campus) can't get SSN unless they pick up a job and have a letter to pro…
Earlier quoted context omitted.
Sorry I mixed up 409a with 83b. I meant 83b. At one point, anyone on visas other than business/visitor could file for SSN or a Tax ID. That's no longer possible unless: 1) You are in the US on a legitimate Visa that allows you to work & 2) You have an offer letter for paid employment. Now students on F1 visa (who are allowed to work part time on campus) can't get SSN unless they pick up a job and have a letter to pro…
You absolutely can get ITINs, which are not SSNs, without being in the US or requiring a work-capable visa. That is, indeed, why they exist.