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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 1441 withholding and when do my U.S. clients have to withhold 30% from payments to me?
I'm a South Korean graphic designer with a New Mexico LLC. A U.S. company I freelance for said they need to withhold 30% of my payments because I'm a foreign person and IRC 1441 requires it. Is this right? I provided a W-8BEN form. Does that change anything? I thought my LLC was a U.S. entity so withholding wouldn't apply. This would basically make the work unprofitable for me.
How does IRC 1442 withholding on foreign corporations differ from IRC 1441 withholding on individuals?
I have a holding company in the Netherlands that owns a U.S. LLC which elected corporate status. My U.S. accountant keeps mentioning both IRC 1441 and IRC 1442 — one for individuals and one for corporations. Since my Dutch company receives dividends from the U.S. entity, which withholding provision applies? And does the U.S.-Netherlands treaty help reduce the rate?
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 my share of the profits under IRC 1446. I thought partnerships didn't pay tax — the income just passes through. Why is the partnership withholding from my distributions?
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