When and how to complete form W-8BEN-E is a must for non-US tax resident entities earning money in the US. This week’s I Hate Numbers podcast follows on from last week.
Last week I dealt with individuals and sole traders earning money from the US, who have income from the U S. This week in I Hate Numbers, it is the turn of companies, partnerships, charities, and single member companies.
Tax and forms, tax and forms go hand in hand, just like chips and gravy, gin and tonic and pineapple and pizza. None more so do tax and forms go hand in hand when, as a non us tax resident, you are dealing with the us and earning money from there.
In this week podcast, it is the turn of companies, partnerships, charities, and single member companies. When and how to complete form W-8BEN-E is my this week podcast focus .
What goes into form W-8BEN-E?
I will walk you through form W-8BEN-E. My podcast may not be the perfect format for showing what the forms look like. I have got you covered, check out my you tube video video for a visual. Moreover, I am going to take you on step by step by journey to explain the form, what it is about, and what goes into it.
At 30 sections, the W-8BEN-E IS a weightier tome compared to the one that individuals and sole traders must complete. Do not get overwhelmed though, not all thirty sections will apply to most of you, it’s a one size fits all form.
Abbreviations and forms are natural bedfellows, it must be a word space thing! Let’s face it, it would not be a form unless you had abbreviations. Abbreviations are FATCA, NFFE and TIN. Phrases keep the abbreviations company. One such phrase, or term if you prefer is the ownership and based erosion test. You need to know what this is to complete the form.
Single member companies
There are different tax and business structures in the US compared to the UK. One example is the C corporation , which is the most common business structure. The C corporation is taxed like UK limited companies. The company pays tax on its profits. The individual shareholders directors will pay tax on the basis that dividends are withdrawn, or salaries paid to the owners.
Moreover, single shareholder companies are not recognized as US C corporations, which are limited company as we know them in the UK. If you are a single member company that wants to be taxed as C Corporation then you must complete a couple of extra forms, as well a form W-8BEN-E.
What next
In conclusion. If you do not complete the W-8BEN-E form correctly you will get a financial kick in your balls, 30% tax stopped at source. Ouch! This podcast on When and how to complete form W-8BEN-E is useful stuff.
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