US tax for an owner abroad · A term for founders abroad
What is Form W-9?
The 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.
Checked against the IRS's instructions and the states' own rules. Reviewed by Saais Patel, compliance reviewer.
Term 53 of 105 in the glossary, filed under F.IRS: instructions for Form W-8BEN
Form W-9, for a founder abroad.
A US person gives clients and platforms a W-9 with their tax number, so the payer can report what it pays. A multi-member LLC or a corporation formed in the US gives one with its EIN.
A single-member LLC with a foreign owner shouldn't. The IRS treats a disregarded LLC as its owner, so the foreign owner gives a W-8BEN in their own name instead, even when a platform's form steers you toward a W-9. Giving a W-9 tells the payer you're a US person, which you aren't.
Sources: IRS: instructions for Form W-8BEN.
What founders ask next.
- Should my foreign-owned LLC give a W-9 or a W-8BEN?
- A single-member LLC: the owner's W-8BEN. A multi-member LLC or a C-Corporation: a W-9 with its EIN, because each is a US person in its own right.
- What happens if I give a W-9 by mistake?
- The payer treats you as a US person and may report your payments on a 1099 under the EIN. Send the right form and ask them to replace it.
- Does a W-9 go to the IRS?
- No. The payer keeps it and uses it to file any 1099 for you.
03 · See also
- US tax for an owner abroadForm W-8BEN and W-8BEN-EThe IRS forms a foreign person or foreign company gives a US payer to certify foreign status and, where it applies, claim a treaty rate.Read the term
- The EIN and IRS formsEINThe nine-digit tax number the IRS assigns to a business, and the first thing every US bank, payment processor and marketplace asks for.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
- US tax for an owner abroadPass-through taxationTax treatment where a company pays no income tax itself and its profit is taxed to its owners, as with an LLC or a partnership.Read the term
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