IRS Form W-8BEN-E
The form filed by foreign entities to claim treaty-rate withholding reduction on US-source income.
Definition
Form W-8BEN-E is the IRS form for foreign entities claiming beneficial ownership of US-source income and treaty-rate withholding reduction. A US-LLC owned by a non-resident files W-8BEN-E with US payers (Stripe, Amazon, AdSense, affiliate platforms) to reduce default 30% withholding to the treaty-defined rate (typically 5-15%).
Context
W-8BEN-E is critical for content creators, affiliate marketers, and royalty earners whose US-source income would otherwise be subject to 30% withholding. The form is per-payer, not per-LLC; each US platform that pays the LLC requires its own W-8BEN-E.
Example
A Bangladeshi founder's Delaware LLC earns affiliate commissions from Amazon Associates. Without W-8BEN-E, Amazon withholds 30% on payouts. After filing W-8BEN-E claiming Bangladesh's US treaty rate, withholding drops substantially.
Common pitfalls
- Incorrectly filled W-8BEN-E results in default 30% withholding even when treaty rates apply.
- Each US payer requires its own W-8BEN-E; the form does not transfer between platforms.
- W-8BEN-E expires after 3 calendar years; re-filing is required.