W-8 or W-9? Decision Tool
Use this interactive tool to determine whether you need Form W-9, W-8BEN, or W-8BEN-E. Then explore the reference guide below covering definitions, special cases, and common mistakes.
What This Tool Does
- ✓Helps determine which IRS form applies to your situation
- ✓Provides specific guidance based on your answers
- ✓Explains the implications of each form
What This Tool Does NOT Do: This is not tax advice. Complex situations require consultation with a qualified tax professional.
Important: This tool provides general guidance only. Tax situations can be complex, and many factors affect the correct form choice. The information provided does not constitute tax or legal advice. Consult a qualified CPA or tax attorney for guidance specific to your situation.
Interactive Decision Tool
Are you a "US person" for tax purposes?
A "US person" includes: US citizens (even living abroad), US resident aliens (green card holders or those meeting the substantial presence test), and US entities (LLCs, corporations formed in any US state).
Key Definitions
"US Person" (IRC §7701(a)(30))
A "US person" includes:
- US citizens (including those living abroad)
- US resident aliens (green card holders or substantial presence test)
- Domestic partnerships and corporations
- LLCs formed in any US state
- Estates and trusts subject to US tax
"Beneficial Owner"
The beneficial owner is the person or entity that owns the income and has the right to claim any applicable tax benefits. This is distinct from a nominee, agent, or intermediary who receives income on behalf of another.
"Withholding Agent"
Any US person (or foreign person with US-source income) who has control, receipt, custody, disposal, or payment of an amount subject to withholding. This includes companies paying contractors, platforms paying creators, and financial institutions paying interest.
"Backup Withholding"
A 24% withholding applied when a payee fails to provide a correct taxpayer identification number or properly certify their status. This is a compliance mechanism—not a final tax. The withheld amounts can be claimed as a credit when filing a tax return.
FATCA Status
The Foreign Account Tax Compliance Act (FATCA) requires foreign financial institutions to report on US account holders and requires foreign entities receiving US payments to classify themselves for Chapter 4 purposes. This is why W-8BEN-E is more complex than W-8BEN.
Form Comparison
| Criteria | W-9 | W-8BEN | W-8BEN-E |
|---|---|---|---|
| Who uses it | US persons | Foreign individuals | Foreign entities |
| Form length | 1 page | 3 pages | 30+ pages |
| Validity period | Until info changes | 3 years | 3 years |
| ID required | SSN / EIN | Foreign TIN | Foreign TIN + GIIN (if applicable) |
| Treaty claims | N/A | Part II | Part III |
Special & Edge Cases
US LLC Owned by Non-US Person
This is one of the most common confusion points. A US LLC is a US entity—regardless of who owns it. The LLC provides a W-9 using its EIN.
Example: Ali, a Turkish citizen living in Istanbul, forms a Wyoming LLC for his software consulting business. When his US client asks for tax documentation, the LLC provides a W-9 with the LLC's EIN. Ali personally remains a non-US person.
Disregarded Entities
A single-member LLC that doesn't elect corporate taxation is a "disregarded entity" for tax purposes. For W-8/W-9 purposes, you still look at the entity's place of formation, not the owner.
A US LLC (even as a disregarded entity) is a US person → W-9. A foreign entity owned by a US person → W-8BEN-E (the entity provides the form).
US Citizen Living Abroad
US citizenship follows you everywhere. A US citizen is always a US person for tax purposes, regardless of where they live or how long they've been abroad. US citizens provide W-9, not W-8 forms.
Tax Treaty Benefits (US-Turkey)
The US-Turkey tax treaty may reduce withholding rates on certain types of income. To claim these benefits, you must complete the treaty section of the W-8BEN or W-8BEN-E form.
- Dividends: Generally 15% (reduced from 30%)
- Interest: 10-15% (depending on type)
- Royalties: 10%
- Business profits: 0% if no US permanent establishment
Common Mistakes to Avoid
Providing W-8BEN when you have a US LLC
✓ The US LLC is a US person and needs W-9. Your personal foreign status doesn't change the entity's status.
Using an old or expired W-8 form
✓ W-8 forms expire after 3 years. Ensure you're using the current version and that it hasn't expired.
Leaving the foreign TIN blank
✓ While not always legally required, providing your foreign tax ID (like Turkish TC Kimlik No) strengthens your documentation.
Claiming treaty benefits without understanding requirements
✓ Treaty benefits have specific conditions. Incorrect claims can trigger IRS scrutiny. Consult a professional if unsure.
Not updating forms when circumstances change
✓ If you become a US resident, form a new entity, or circumstances change, you must provide updated forms.
Frequently Asked Questions
My client is insisting I provide a W-9, but I'm not a US person. What should I do?
Politely explain that W-9 is specifically for US persons, and as a foreign person, you should provide W-8BEN (individual) or W-8BEN-E (entity). You can reference IRS instructions for these forms. If they insist incorrectly, they may not understand the rules—consider providing written explanation or suggesting they consult their accountant.
I have both a US LLC and provide personal services. Which form do I use?
It depends on who is receiving the payment. If the US LLC is the service provider, the LLC provides W-9. If you personally (not through the LLC) are providing services, you may need W-8BEN. Many contractors invoice through their LLC to simplify this.
How do I get an EIN for my US LLC to put on the W-9?
Apply online at irs.gov (if you have an SSN/ITIN) or by mail/fax using Form SS-4. Non-residents without SSN typically use the fax method, which takes 4-6 weeks.
What is the penalty for providing the wrong form?
Consequences can include incorrect withholding (24% backup withholding or 30% FDAP withholding), requirement to file amended forms, potential penalties for incorrect certifications, and IRS scrutiny. The payer may also face penalties for not obtaining correct documentation.
Official Sources & Downloads
Related Resources
Cite This Entry
EchoLegal, “W-8/W-9 Decision Map,” EchoLegal Legal Encyclopedia, v1.0 (last updated Jan 25, 2026), https://echo-legal.com/en/checklists/w8-w9-karar-haritasi.
W-8/W-9 Decision Map, EchoLegal Legal Encyclopedia (last updated Jan 25, 2026), https://echo-legal.com/en/checklists/w8-w9-karar-haritasi.
ecl-chk-00004Author
EchoLegal Legal Team
Licensed in New York
Oversees editorial standards and legal accuracy for all EchoLegal content.
Licensed in New York. This content is provided for general informational purposes and does not constitute legal advice.
This content is for informational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and change frequently. The information provided may not reflect current law or IRS guidance. Always consult a qualified CPA, tax attorney, or enrolled agent for advice specific to your situation. EchoLegal is not a law firm, accounting firm, or tax advisory service.