W-8BEN-E: How Foreign Companies Fill It Out (2026)

Form W-8BEN-E is the form a foreign company gives a US client or platform to certify that it is not a US person, state its tax classification and FATCA status, and claim any tax treaty benefits. For a typical overseas agency or software company billing US clients for work done abroad, filling it out means completing Part I, the one short part that matches your FATCA status (usually Active NFFE), and the certification. It goes to the payer, never to the IRS.

US clients ask for it during vendor onboarding, often before they will pay your first invoice. This guide covers which form you need, the lines that matter for service businesses, a filled-out example, and the mistakes that cause accounts payable to reject the form. It is general information, not tax advice; check with a tax adviser for complex structures or royalty and investment income.

W-8BEN-E vs W-8BEN vs W-9: which form?

You are	Form
A US citizen, resident or US company (including a US LLC)	W-9
A non-US individual or sole proprietor	W-8BEN (see our W-8BEN guide for freelancers)
A non-US company, partnership or other entity	W-8BEN-E
A foreign entity whose income is effectively connected with a US business	W-8ECI
An intermediary or flow-through receiving for others	W-8IMY

A US LLC owned by a non-resident is a special case. Because a single-member LLC is disregarded, the IRS treats its owner as the payee: a foreign individual owner usually provides a W-8BEN, and a foreign company that owns the LLC provides a W-8BEN-E. Disregarded entities generally do not complete the form for themselves. Our guide to the US LLC for non-residents explains why.

How to fill out W-8BEN-E: the lines that matter

The form runs to many pages because it covers banks, funds and governments, but an ordinary trading company completes only a handful of sections. Line references below follow the October 2021 revision, which is current according to the IRS Instructions for Form W-8BEN-E.

Part I: identification

1. Line 1: the company's full legal name, as on its registration certificate.
2. Line 2: country of incorporation or organization.
3. Line 3: leave blank unless a disregarded entity is receiving the payment.
4. Line 4 (Chapter 3 status): check one box. A private limited company or similar is "Corporation". Answer the hybrid question only if you check a flow-through status.
5. Line 5 (Chapter 4 / FATCA status): most operating companies check "Active NFFE". Then you complete only the matching part, Part XXV.
6. Line 6: permanent residence address of the company. Not a PO box, and not a care-of address unless it is your registered address.
7. Line 7: mailing address, if different.
8. Line 8: US TIN (EIN), only if you have one or it is required for a treaty claim.
9. Line 9b: foreign TIN, such as your company tax number in your country. Line 9c is a checkbox if you are not legally required to have one.
10. Line 10: optional reference number, for example your vendor ID with the client.

Part III: treaty benefits (only if claiming)

If you claim a reduced withholding rate under a tax treaty, line 14a names your treaty country, line 14b requires you to check the limitation on benefits (LOB) test you meet, and line 15 states the article, rate and income type when the treaty requires extra conditions. For fees on services performed entirely outside the US you often do not need this part, because that income is foreign-source and not subject to US withholding in the first place. Royalty and licensing income is different and often does need a treaty claim.

Part XXV: Active NFFE

Check the single box on line 39 certifying that less than 50% of your gross income for the preceding year was passive income and less than 50% of your assets produced or were held to produce passive income.

Part XXX: certification

An authorized officer or director signs, prints their name and dates the form, and checks the box confirming capacity to sign. Electronic signatures are allowed where the payer's system meets IRS standards.

Worked example: a UK agency billing a US SaaS client

Northlight Studio Ltd, a private limited company in Manchester, signs a retainer with a US software company for $6,500 a month of design work performed in the UK. These details are illustrative.

Line	Entry
1	Northlight Studio Ltd
2	United Kingdom
4	Corporation; hybrid question not applicable
5	Active NFFE
6	Registered office address in Manchester
8	Blank (no US EIN)
9b	Company's UK Unique Taxpayer Reference
Part III	Not completed (service fees performed outside the US)
Part XXV, line 39	Checked
Part XXX	Signed by a director, dated March 10, 2026

The form is valid until December 31, 2029. The client pays each $6,500 invoice in full with no US withholding. In the UK, Northlight's invoices are outside the scope of UK VAT under the place-of-supply rules for B2B services, so the invoice states the reason rather than charging VAT; our reverse charge VAT invoice guide covers the wording. If Northlight later licensed fonts to the client for a royalty, it would revisit Part III, because royalties can be US-source and subject to 30% withholding without a treaty claim.

When will a US payer withhold tax?

US withholding on payments to foreign persons applies to fixed or determinable US-source income, such as interest, dividends, rents and royalties, and to compensation for services performed in the US. The default rate is 30%, reduced or removed by treaty. A service company working remotely generally earns foreign-source income, so the W-8BEN-E serves mainly to document that you are foreign and avoid backup withholding or a 1099 being issued. If your team travels to the US to do work on site, discuss the US-source portion with an adviser and show on-site work separately on your invoices. Our guide to withholding tax on invoices explains how to show any withheld amount.

Common W-8BEN-E mistakes

• Using the individual form for a company, or the company form when you invoice personally.
• Checking a FATCA status and not completing its part. Every status except a few requires its matching section.
• Missing foreign TIN. Many payers reject forms without line 9b or the 9c box.
• Claiming treaty benefits without the LOB box, or claiming them on income that needs no claim.
• US address on line 6. A US permanent residence address suggests you are not foreign and invalidates the claim unless explained.
• Not updating after changes. You must notify the payer within 30 days of a change in circumstances.
• Unsigned or undated form, or signed by someone without authority.

Other FATCA statuses a small company might see

Active NFFE covers most trading businesses, but a few situations need a different box on line 5:

Status	Who typically uses it	Part to complete
Active NFFE	Operating companies earning mainly fees or sales	Part XXV
Passive NFFE	Holding or investment companies earning mainly interest, dividends or rent	Part XXVI, and possibly Part XXIX listing substantial US owners
Participating FFI or similar	Banks, funds and other financial institutions	GIIN on line 9a and other parts
Nonprofit organization	Charities established outside the US	Part XXII

If your company is a personal holding company that invoices for your services but also holds investments, check last year's income split before ticking Active NFFE. Getting the status wrong does not usually change withholding on service fees, but a payer's compliance team may reject a form that is internally inconsistent.

Responding to questions from accounts payable

Large US companies often run W-8 forms through software that flags issues automatically. Typical follow-ups and how to handle them:

• "Please provide a US TIN." Explain that the company is foreign, earns fees for services performed outside the US, and does not claim treaty benefits that require a US TIN. Point to your foreign TIN on line 9b.
• "Your mailing address is in the US." If you use a US mail service for convenience, make sure line 6 shows the foreign permanent address and keep the US address on line 7 only.
• "Please confirm where services are performed." A one-line statement on letterhead, or wording on your invoices such as "All services performed in the United Kingdom", answers this and supports the foreign-source position.
• "Do you want us to send a 1099?" No. Foreign payees documented on a W-8 do not get a 1099-NEC; payments that are subject to withholding are reported on Form 1042-S instead.

Our vendor onboarding checklist shows the other documents clients commonly request alongside the tax form.

Step by step: onboarding with a new US client

1. Confirm whether you are billing as an individual or a company.
2. Download the current W-8BEN-E from irs.gov rather than using an old copy.
3. Complete Part I, your FATCA status part and, only if needed, Part III.
4. Have an authorized officer sign and date it.
5. Upload it through the client's vendor portal or a secure link.
6. Send your first invoice showing your company's legal name and address exactly as on the form, the client's PO number and your bank details. If you bill in a currency other than USD, see our guide to foreign currency invoices.
7. Calendar the expiry date three calendar years out.

For payment costs on those invoices, compare cross-border payment fees before you share bank details, and read how to invoice international clients for currency and terms.

A correct W-8BEN-E gets you through vendor onboarding; a clear invoice gets you paid. Create invoices that match your company details exactly with our free invoice generator, with no sign-up and PDF download in seconds.