W-8BEN vs W-8BEN-E
If your business is based outside the United States but you sell to U.S. customers, work with U.S. clients, or get paid through U.S. platforms, you may be asked to complete a “W-8” form during onboarding. This can feel confusing, especially if you are not sure whether you are being treated like an individual contractor or a business.
This guide explains the two most common forms, how to choose the right one, what they affect, and how to avoid the delays and surprises that often come with them.
What are W-8 forms, in plain English?
W-8 forms refer to a group of IRS documents used to confirm that the person or business getting paid is not a U.S. person for U.S. tax purposes. The company or platform paying you uses the form to document your non-U.S. status and, in some cases, determine whether U.S. tax withholding rules apply.
Important note: in most cases, you provide the completed form to the payer (the platform, customer, or institution requesting it). You do not typically mail it to the IRS.
The two W-8 forms you will see most often are W-8BEN (for individuals) and W-8BEN-E (for businesses).
Which form do you need: W-8BEN or W-8BEN-E?
This is the most common point of confusion, so here is the simplest way to think about it.
Use W-8BEN if you are a non-U.S. individual
Examples:
A freelancer or consultant getting paid directly under your personal name
A creator, affiliate, or contractor paid as an individual
A sole proprietor who is being paid as an individual rather than as a registered entity
Use W-8BEN-E if you are a non-U.S. business or entity
Examples:
A non-U.S. registered company selling services or products into the U.S.
A foreign corporation or partnership
A business receiving payments under a company name, with a business bank account and business registration
If you operate through a registered business, you will usually be asked for W-8BEN-E, even if you are the owner and the only employee.
Why U.S. platforms and customers ask for these forms
Non-U.S. businesses often assume these forms only apply to “contractors.” In reality, companies and platforms request W-8 forms, usually W-8BEN or W-8BEN-E, in several common situations, including:
Marketplace and platform onboarding
If you sell through a platform that serves U.S. customers, the platform may request a W-8 form, usually W-8BEN or W-8BEN-E, as part of compliance and payout setup.
Getting paid by a U.S. company
If a U.S. company pays your non-U.S. business for services, licensing, commissions, referrals, royalties, or similar arrangements, they may request documentation of your status.
Financial accounts and payment processors
Banks, brokerages, and some payment processors request W-8 forms to apply proper tax documentation for non-U.S. account holders.
In short, the W-8 form is often a standard “know who we are paying” step, and it helps the payer handle the payment correctly on their side.
What the forms can affect: withholding and tax treatment
The word “withholding” is what makes most people nervous. Withholding means the payer keeps back a portion of the payment and remits it under U.S. tax rules, when required.
Whether withholding applies depends on the type of income and the details of your situation. It also depends on whether the payment is considered U.S. source income under U.S. tax rules, which can vary based on the income type and where the work or activity is performed.For certain categories of U.S.-source income, payers may have specific withholding obligations, especially if they do not have valid documentation on file.
For some businesses and individuals, providing the correct W-8 form can also support claiming tax treaty benefits when applicable. Tax treaties vary by country and by type of income, so treaty claims are one of the areas where it is worth double-checking before you submit.
This is also why these forms can impact cash flow. If a form is missing, incomplete, or mismatched to your profile, payouts can get delayed, or withholding may be applied more conservatively until things are corrected.
Where you submit the form and what happens next
In most cases:
You submit the W-8 form to the platform, institution, or customer requesting it.
They keep it on file as part of their compliance documentation.
They may request a new form later if it expires or if your information changes.
If you are working with multiple platforms or U.S. customers, you may end up submitting the form more than once, because each payer typically maintains their own documentation.
How long do W-8 forms stay valid?
W-8 forms, including W-8BEN and W-8BEN-E, do not last forever. A common rule is that a W-8 form remains valid for a limited period (often through the end of the third calendar year after signature), unless a change occurs that makes the information inaccurate.
Examples of changes that may require an update:
Your business changes legal name
Your address or country of tax residency changes
Your entity classification changes
You start receiving a different type of income that affects treaty or withholding positions
When in doubt, respond promptly to a payer request for an updated form, because expired forms can lead to payout delays.
Common mistakes non-U.S. businesses run into
Here are a few issues that cause the most back-and-forth:
Submitting W-8BEN when the payee is actually a company
If payouts are going to a business account under a business name, the payer often expects W-8BEN-E.
Mismatch between your W-8BEN or W-8BEN-E form and your platform profile
Different legal name formats, different address formats, or a different country can trigger manual review.
Trying to claim treaty benefits without confirming the details
Treaty claims may require specific information and depend on the income type.
Treating a W-8BEN or W-8BEN-E form as a one-time task
If you expand to new platforms, new payment partners, or new entity setups, documentation requests tend to come back.
A quick checklist before you submit
Use this as a last-minute review:
Am I being paid as an individual (W-8BEN) or as a business/entity (W-8BEN-E)?
Does the name on the form match the name on the payer profile and bank account?
Is my permanent address accurate and consistent?
If I am claiming treaty benefits, do I understand why and is the information complete?
Is the form signed, dated, and current?
The bigger picture: forms are just one part of operating in the U.S. market
W-8 forms are usually the first administrative step non-U.S. businesses encounter when entering the U.S. market, but they are rarely the last. Once payouts start flowing, the next challenge is staying organized across invoices, receivables, and clean books so cash flow stays predictable. Once you are actively selling, you also need a consistent way to manage invoicing, track receivables, keep clean books, and understand cash flow across platforms, currencies, and payment timelines.
Arlo Performance helps with those back-office tasks through bookkeeping, accounts receivable support, and fractional CFO services so you can stay focused on sales and growth.
If your expansion into the U.S. also includes storing inventory and shipping orders locally, we can connect you with its sister company, Arlo Hub, which provides U.S.-based warehousing, 3PL, and fulfillment support.