When should I use Form W-8ECI instead of W-8BEN-E for my LLC?
My U.S. LLC earns income that I believe is effectively connected with a U.S. trade or business. I have been filing W-8BEN-E, but someone told me I should be using Form W-8ECI instead. What is the difference, and when is W-8ECI the right choice? Will it change how much tax is withheld from my payments?
Related Questions
What is IRC 1446 withholding on foreign partners and why is the U.S. partnership withholding from my share?
I'm a German citizen who is a 40% partner in a U.S. LLC taxed as a partnership. The partnership operates a restaurant in New York. The managing partner told me the partnership has to withhold tax from...
Which W-8 form do I collect from each kind of foreign payee — BEN, BEN-E, ECI, or IMY?
Before I pay my various foreign payees I know I'm supposed to get a W-8 on file, but there are several versions and I can't tell which goes with which payee. I have a foreign individual, a foreign com...
Does Section 1446 still apply if my partnership made no distributions to foreign partners in 2026?
We're profitable but reinvesting everything. No cash distributions to any partner this year. Does Section 1446 still hit us for 2026?
Does Section 1446 partner withholding apply to my foreign-owned multi-member LLC in 2026?
I have a U.S. multi-member LLC taxed as a partnership. Two of the three partners are foreign. Does Section 1446 withholding apply to us for tax year 2026?
Payroll asked for a W-8BEN for treaty-exempt wages, but I thought personal services should use Form 8233. Which one is right?
I do not want to send the wrong document just because the payroll team is using a generic template. My understanding is that treaty claims on personal services compensation are usually handled with Fo...
A U.S. payer says I might need W-8ECI instead of W-8BEN-E. How do I know if they are right?
I live in Mexico and run a Delaware LLC for enterprise software implementation. One U.S. payer told me to ask my tax adviser whether the payments are effectively connected and whether I should give th...
I started doing U.S. implementation work in person. Does that mean my old W-8BEN-E may no longer fit?
I am based in Germany and originally ran everything remotely, so W-8BEN-E made sense to me. This year I spent a few weeks in the U.S. doing implementation workshops for two customers and I may do that...
The W-8 hasn't arrived yet but I need to pay my foreign payee now — should I just over-withhold at 30%?
I have a US-source payment due to a foreign payee, but the valid W-8 still hasn't come back. I don't want to hold up the payment, and I'm tempted to just withhold the full 30% now and let them sort ou...
Why is 30% being withheld from my U.S. LLC income as a foreign owner?
I am a nonresident alien who owns a single-member LLC in the United States. I recently received a payment from a U.S. client, but 30% was withheld before I got the funds. I did not expect such a large...
Does my U.S. LLC create a permanent establishment under a tax treaty?
I am a nonresident alien who operates a consulting business through a U.S. LLC. I keep hearing that a permanent establishment (PE) in the U.S. could affect my tax treaty benefits and my overall tax li...
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
