When should I use Form W-8BEN vs Form W-8BEN-E?

The forms apply to different types of beneficial owners:

• Form W-8BEN: for individuals (foreign citizens, not US persons)
• Form W-8BEN-E: for entities (foreign corporations, partnerships, trusts, including LLCs in some cases)

When you're a foreign individual:

If you receive US-source income directly as a person — your name on the bank account, your tax ID — use Form W-8BEN. One page, straightforward.

When you're a foreign entity:

If the income flows to a foreign entity (corporation, partnership, trust) and the entity is the recipient on US payer records, use Form W-8BEN-E. Five pages, much more complex.

The tricky case — foreign-owned US LLC:

This is where many creators get confused. Suppose you're a UK individual who forms a US LLC (Delaware single-member LLC) and routes your AdSense revenue through it.

The answer:

For a single-member LLC treated as a disregarded entity, the form is filed by the underlying beneficial owner (the UK individual), using Form W-8BEN (individual form).

The LLC itself doesn't need a separate W-8BEN-E because it's not a separate taxpayer for income tax purposes — it's disregarded.

But on the W-8BEN, the UK individual checks Part I Line 5 indicating that the entity (the LLC) is "a disregarded entity, partnership, or simple trust" — and provides the LLC's information separately.

When DOES W-8BEN-E apply?

• Foreign corporation (UK Ltd, German GmbH, French SARL, etc.) is the recipient
• Foreign partnership receives the payment
• Foreign trust receives the payment
• Foreign government / international organization
• Sometimes for multi-member LLCs that elected corporate treatment (rare)

The 5 pages of W-8BEN-E include:

Part I — Identification (name, country, FATCA classification, beneficial owner type)

Part II — Disregarded Entity / Branch information

Part III — Treaty claim

Part IV-XXIV — Various FATCA classifications (active NFFE, passive NFFE, financial institution, etc.)

Part XXV — Substantial US Owner certification

Part XXVI — Capacity certification

The FATCA classification (Parts IV-XXIV) is the most complex. Different entity types require different sections.

FATCA basics:

The Foreign Account Tax Compliance Act (FATCA) requires foreign entities to disclose their US owners and structure. For W-8BEN-E purposes:

• Active NFFE: non-financial foreign entity engaged in active trade/business. Most operating companies fall here.
• Passive NFFE: non-financial foreign entity holding investments. Must disclose substantial US owners.
• Financial Institution: banks, brokerages, investment funds. Must register with the IRS and have a GIIN.

Most foreign individual creators with foreign companies are Active NFFEs. The form is moderately complex but manageable.

For the EA exam:

Know:

• W-8BEN = individuals
• W-8BEN-E = entities
• Disregarded LLC: file W-8BEN as the underlying individual
• FATCA classification required on W-8BEN-E

Practical tip:

If you're working with a foreign client setting up a US business, walk through whether they should use a US LLC vs. a foreign entity. The choice affects the W-8BEN/W-8BEN-E flow significantly. Simpler structures are often better.