Form W-8BEN, W-8BEN-E and W-9: which one your company gives, and how to fill it

Before paying you, a US client, platform or marketplace will ask for a W-9, a W-8BEN or a W-8BEN-E. Which one depends on what kind of company you have and who owns it, and it's often not the one founders expect.

The single-member case surprises people. A US LLC is a US company, so shouldn't it give a W-9? Not when it's a disregarded entity with a foreign owner. The IRS's instructions say the owner, not the disregarded entity, gives the W-8, so the payer treats you as the beneficial owner, applies your treaty and reports on that basis. Some platforms' forms are built for US owners and steer you toward a W-9. Give the W-8BEN anyway, and contact their support if the form won't accept it.

1. 1

   Part I: who you are

   Your name as it appears on your passport, your country of citizenship, your permanent home address abroad, and the tax number your country issued you on line 6a. Leave line 5, the US taxpayer number, blank unless you have one. If your country doesn't issue tax numbers, line 6b is where you say so.

2. 2

   Part II: the treaty claim

   Only if your country has a US tax treaty. Line 9 names your country of residence. Line 10 is for the treaty article, the rate and the type of income, for example "Article 12(1), 0%, copyright royalties", when the benefit has conditions line 9 doesn't cover. Take the article from the treaty or from the platform's help page for your country, because a wrong article can get the claim rejected.

3. 3

   Part III: sign and date

   The form is valid until the end of the third calendar year after the year you sign it, or until something on it changes. Platforms will ask you to renew it.

A multi-member LLC or a corporation gives a W-9 with the company's legal name, its federal tax classification, its address and its EIN. There's no treaty claim on a W-9. A partnership handles any withholding on its foreign partners itself, and a corporation withholds on its foreign shareholders when it pays dividends.

• Giving a W-9 for a disregarded LLC with a foreign owner. The payer treats you as a US person and reports the payments on a 1099, and the IRS may later ask why a foreign person has a 1099 and no return.
• Leaving out your country's tax number. Without it, or the line 6b explanation, a treaty claim generally isn't valid and 30% is withheld.
• Claiming a treaty rate on services income. It does no harm, but it isn't needed, because services performed abroad aren't withheld on. Part II is for royalties, dividends and interest.
• Putting a US address on the form. The registered agent's address belongs to the company. Your permanent residence is where you live, and a W-8BEN can't use a post office box or an address used only for mail.
• Letting it expire. After the third calendar year, payers withhold 30% until a new form is on file.