The Form W-9 is a withholding certificate used by U.S. persons to verify their name, tax ID number, address, and tax classification for federal tax purposes. This article discusses the Form W-9 for multi-member LLCs.
Twitch streamers and YouTube channel creators that are non-U.S. persons may receive a Form 1042-S at the end of each year. This information reports your U.S. source royalty income and federal withholding taxes.
A single member LLC is by default a disregarded entity for federal tax purposes. This article and video covers the basics of disregarded entities and whether a nonresident owner needs the Form W-9 or Form W-8 series.
U.S. citizens are U.S. tax residents regardless of where they live and work. This applies to persons with dual citizenship with other countries. U.S. citizens need to be careful which withholding certificate they complete when requested by banks, custodians, and other payors.
The IRS Form W-8 series of withholding certificates are completed by non-U.S. persons and entities. A U.S. person would complete Form W-9.
U.S. source Fixed, Determinable, Annual or Periodic (FDAP) income is generally subject to taxation when amounts are paid to nonresident taxpayers. This article summarizes the key components of FDAP income.
A multi-member LLC is treated as a partnership for federal tax purposes, unless it files an election otherwise. For a foreign-owned multi-member LLC, which withholding certificate do you use?
If a non-U.S. citizen is temporarily living and working inside the USA, they are generally considered a U.S. tax resident. When the person leaves the USA, they revert back to being a nonresident for federal tax purposes.
When a U.S. person opens a foreign bank account, the U.S. person may have some additional tax filing and reporting obligations. This article and video discuss those issues for U.S. persons.
