W-8BEN-E Form Guide for Startups: International Tax Compliance

he W-8BEN-E form is used by foreign entities to certify their status for tax withholding purposes in the United States. While it might seem like a lot of paperwork at first glance, most businesses only need to focus on a few key sections.

1. Part I: Identification of Beneficial Owner

This section is all about identifying your business. You’ll need to provide your legal name, country of incorporation, and type of entity (like a corporation or partnership). It’s straightforward—just make sure the information matches your official documents.

2. Part II: Disregarded Entity or Branch Receiving Payment

If your entity is disregarded for tax purposes (like an LLC with a single owner), you’ll need to fill out this part. If not, you can skip ahead.

3. Part III: Claim of Tax Treaty Benefits

This is the crucial part where you claim the benefits of a tax treaty between your country and the U.S. You'll need to:

• Enter your country of tax residence.
• Specify the article and paragraph of the tax treaty that provides the exemption or reduction.
• Describe the type of income you're receiving (like dividends or royalties).
• Check the box under Line 14b if you meet the requirements to claim the treaty benefits.

4. Part IV: Withholding Foreign Partnership or Trust

Only fill this out if it applies to your situation. Otherwise, skip it.

5. Part XXX: Certification

This is the final section where you certify that the information provided is accurate. Sign, date, and you’re done!

Filling out the W-8BEN-E form correctly is essential for making sure you get the tax benefits you’re entitled to. If you need any assistance with the W-8BEN-E form or have questions about how it relates to your specific situation, Fondo is here to help. Don’t hesitate to reach out!

‍^{Fondo is the all-in-one accounting platform for 1,000+ startups. Get your books closed, taxes filed, and cash back from the IRS (the average startup gets back $21,000). Are you ready for the October 15th deadline? Get your taxes filed here}