What is a W-8BEN? A quick guide for non-US founders

If you're a non-US individual being paid by a US business, sooner or later someone will ask you for a W-8BEN. It's a one-page IRS form that does two things. It tells the payer you're a foreign person (so they shouldn't treat you like a US taxpayer), and it lets you claim a reduced withholding rate under your country's tax treaty with the United States.

What the form does

Without a W-8BEN on file, US payers are required to withhold 30% from many payments to foreign individuals. Royalties, dividends, certain types of services, and platform payouts (think Stripe, App Store, freelance marketplaces) all qualify. That 30% goes straight to the IRS and getting it back later involves filing a US tax return.

With a W-8BEN, you can usually claim a lower rate, often 0% to 15% depending on the treaty between your country and the US. The form also documents your identity for the payer's records, which most platforms now require before they'll release a payout.

Who needs to file it

The W-8BEN is for individuals. The corporate version is the W-8BEN-E and it's a different form. You'll typically need to file a W-8BEN if you are:

1. A non-US individual receiving US-source payments (Stripe payouts, royalties, dividends, some platform earnings).
2. The sole owner of a US single-member LLC, when the LLC itself is treated as a “disregarded entity” for US tax purposes.
3. Being onboarded by a US bank, broker, or payment platform that asks for tax documentation.

You give the W-8BEN to the payer or platform asking for it. You do not file it with the IRS. The payer keeps it on file and uses it to determine how much (if anything) to withhold.

Treaty benefits and how to claim them

Part II of the form is where you claim the treaty rate. You'll need your country of residence, the article of the treaty you're claiming under, and the reduced rate. The IRS publishes the treaties at irs.gov; most accountants for international founders know the common rates by heart.

Two quick examples. A UK-resident individual receiving US royalties can usually drop the withholding from 30% to 0% under the UK-US treaty. A India-resident individual on the same payment typically gets 15%. If you're forming a US LLC from India, the W-8BEN sits alongside your EIN as one of the two documents your bank or payment processor will ask for.

W-8BEN vs W-8BEN-E

The W-8BEN-E is the version for entities (a foreign company being paid by a US business). If you own a single-member LLC and you're the foreign individual behind it, you usually use the W-8BEN (not the W-8BEN-E), because the IRS treats the LLC as “disregarded” and looks through to you. Multi-member LLCs and foreign corporations use the W-8BEN-E. Check with your accountant for any edge cases, especially if the LLC has elected to be taxed as a corporation.

The form is good for three years from the date you sign it, unless something material changes (your address, your residency status, your treaty eligibility). Most banks will ping you to renew it.

Read next: If you're forming a US LLC from outside the country, start with the country-specific guide: forming an LLC as an Indian founder, a British founder, or a Nigerian founder. When you're ready, you can form your LLC with EntityEngine in any state.