Inexplicably completing forms SS-4 8832 are not at the forefront of people’s minds. Hear those words, and you may be looking for that drying paint.
However, if you are a non-US resident company receiving income from the United States, then you need to
- Firstly pause
- Secondly, listen to episode 119 of my I Hate Numbers podcast
- Lastly, watch the drying paint later.
Your nonresident income is liable to have 30% held back if you don’t complete form W-8BEN-E. Check out episode podcast episode 68 for the audio, and my YouTube video if you want to see what goes in the form.
It doesn’t stop there. If you are a business owner with just yourself as the only shareholder, then two more forms to add. What are those forms I hear you ask. Great question, Those forms are
IRS forms
The idea of completing IRS Forms SS-4 and 8832 may make you feel like your head is going to explode. You’re not alone! Completing these forms can be confusing, but it doesn’t have to be.
In this weeks episode, I’ll walk you through the process step by step, and make it as simple as possible.
Why we need forms W-BEN-E , SS-4 and 8832
You can ignore these forms if you wish. That’s not such a good idea
Not completing and submitting form W-8BEN-E means your US client can and will have to withhold up to 30% of your US income. That’s 30&% OF financial pain. Thanks, Uncle Sam!
What about forms SS4 and 8832? Well not all tax jurisdictions are created equally. And the IRS does not recognise single member companies as corporations. So, step forward those extra forms.
Conclusion
So, there you have it. The process of reclassification for a single member shareholder company is made easier. However, it is important to remember the two steps involved. Applying for an EIN and then form 8832. Do you fancy seeing what the forms look like, and what goes into them? Then check out my You Tube video , even better subscribe to the channel.
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