US tax for an owner abroad · A term for founders abroad
What are Forms W-8BEN and W-8BEN-E?
The IRS forms a foreign person or foreign company gives a US payer to certify foreign status and, where it applies, claim a treaty rate.
Checked against the IRS's instructions and the states' own rules. Reviewed by Saais Patel, compliance reviewer.
Term 52 of 105 in the glossary, filed under F.IRS: instructions for Form W-8BEN
Form W-8BEN and W-8BEN-E, for a founder abroad.
A US payer has to withhold 30% on certain US-source income paid to a foreign person, such as royalties, unless the payee certifies that a lower tax treaty rate applies. Form W-8BEN does that for an individual, and W-8BEN-E for a company or other entity.
Which one a founder abroad gives
- Your single-member LLC is paid: you give a W-8BEN in your own name. The IRS looks through a disregarded LLC to its owner, so the LLC doesn't give its own form.
- A company you own abroad is paid, or your LLC has elected to be taxed as a corporation: the company gives a W-8BEN-E.
- A multi-member LLC is paid: it's a US partnership, so it gives a W-9 with its EIN.
Payments for services performed outside the US aren't US-source and aren't withheld on, but the form still certifies who you are. It stays valid until the end of the third calendar year after you sign it, unless your details change.
When your company pays a contractor abroad, it keeps their W-8BEN on file. See W-8BEN for a contractor abroad.
Sources: IRS: instructions for Form W-8BEN.
What founders ask next.
- Does my single-member LLC fill in a W-8BEN-E?
- Usually not. The IRS instructions say the owner of a disregarded entity, not the entity, gives the form, so a foreign individual owner gives a W-8BEN. Some platforms ask for a W-8BEN-E anyway; the W-8BEN guide covers what to do.
- How long is a W-8BEN valid?
- Until the last day of the third calendar year after the year you sign it, so one signed in 2026 lasts to 31 December 2029, unless something on it changes first.
- Do I need a US tax number on a W-8BEN?
- Not usually. Your home country's tax number goes on line 6a. A US number is needed mainly to claim a treaty rate where your country doesn't issue you one.
03 · See also
- US tax for an owner abroadForm W-9The form a US person or US company gives a payer with its tax number; what a multi-member LLC or corporation gives a US client.Read the term
- US tax for an owner abroadWithholding taxTax a US payer deducts before paying a foreign person: 30% on US-source passive income, unless a treaty rate is claimed on a W-8.Read the term
- US tax for an owner abroadTax treatyAn agreement between the US and another country that lowers withholding, decides which country taxes what, and relieves double taxation.Read the term
- US tax for an owner abroadDisregarded entityA single-member LLC the IRS ignores for income tax, treating its income as the owner's; it still files Form 5472 if the owner is foreign.Read the term
Ready when you are
Answer the questions. We do the filing.
It takes about four minutes. You see the whole order, Wyoming fee included, before anything is charged.
You're startingLLC · WY
Start a companyLaunch · $351.40 · Wyoming fee included