Does a U.S. LLC owned by one foreign person give a W-9 or a W-8 on marketplaces?

Under the Form W-9 instructions, when a disregarded entity's owner is a foreign person, the owner gives the appropriate W-8 (W-8BEN for an individual, W-8BEN-E for a company, W-8ECI for effectively connected income), not a W-9, even with a U.S. TIN. Only after the LLC elects corporate treatment on Form 8832 does it give a W-9 in its own name.

Do foreign sellers who give a W-8 receive a 1099-K?

Generally no. The 1099-K is for U.S. taxpayers, and Walmart's help page says it goes only to sellers registered as W-9 entities. W-9 sellers with more than $20,000 and more than 200 transactions in a year receive one from the platform or payment processor; some states use lower thresholds.

My home-country company has an EIN. W-8BEN-E or W-8ECI on Walmart?

Walmart classifies a foreign-incorporated seller with an EIN as W-8ECI and one without as W-8BEN-E. A W-8ECI says the income is effectively connected with a U.S. business and that a U.S. return (Form 1120-F) will be filed. Decide first whether you actually have a U.S. business; don't take the W-8ECI path just because you hold an EIN.

What happens if the name and TIN on my W-9 don't match IRS records?

The IRS notifies the platform, which sends you a B notice to correct it; if you don't, the platform withholds 24% of payouts as backup withholding and pays it to the IRS. Line 1 must match IRS records exactly; for a U.S.-owned single-member LLC, line 1 is the owner and line 2 is the LLC.

W-9 or W-8 for Walmart, Amazon and TikTok Sellers

Every U.S. marketplace asks for a tax form. U.S. citizens, green card holders and tax residents, and U.S. entities taxed as corporations or partnerships, give a W-9; foreign individuals give a W-8BEN, foreign companies a W-8BEN-E, and those whose income is effectively connected with a U.S. business and who have a U.S. taxpayer ID a W-8ECI. A U.S. LLC with one foreign owner and no corporate election gives the foreign owner's W-8, not a W-9 in the LLC's name. And the same entity should give the same form on Walmart, Amazon and TikTok Shop.

Why platforms ask

U.S. tax law makes the payer decide whether the payee is a U.S. person. For W-9 sellers above the threshold, the platform reports a 1099-K; for W-8 sellers, it doesn't. Sales proceeds generally aren't the fixed or determinable income that carries 30% withholding, so foreign sellers' payouts usually aren't withheld on; but the wrong form leaves the platform's reporting out of line with your returns.

The federal 1099-K threshold is more than $20,000 and more than 200 transactions in a year, and some states are lower. Walmart's help page says it issues 1099-Ks only to sellers registered as W-9 entities, through the payment processor.

A W-9 has to match IRS records exactly. When the line 1 name and TIN don't match, the IRS has the platform send a B notice, and if it isn't fixed, the platform must hold back 24% of payouts as backup withholding.

Who gives which form

W-9: U.S. citizens, green card holders and residents under the substantial presence test; U.S. C corporations, S corporations, partnerships (including multi-member LLCs) and LLCs that elected corporate treatment. A single-member LLC owned by a U.S. person puts the owner's name on line 1 and the LLC's name on line 2.

W-8BEN: a foreign individual, certifying non-U.S. status and claiming treaty benefits.

W-8BEN-E: a foreign company or other foreign entity.

W-8ECI: a foreign person or company whose income is effectively connected with a U.S. trade or business. The payer doesn't withhold 30%, but the payee files a U.S. return (Form 1040-NR or Form 1120-F). Line 7 must show a U.S. taxpayer ID, or the form is invalid.

The one most often filed wrong: a foreign owner's single-member LLC

A single-member LLC a foreign person forms in Wyoming or Delaware has its own EIN, a U.S. address and a U.S. bank account, so platforms and banks often assume it gives a W-9. But the Form W-9 instructions (Rev. March 2024) say that if the owner of a disregarded entity is a foreign person, the owner must complete an appropriate Form W-8 instead of a W-9, even with a U.S. TIN. The Form W-8BEN-E instructions likewise say a disregarded entity generally doesn't provide the form; its owner does.

So the correct approach is a W-8BEN from an individual owner, a W-8BEN-E from a corporate owner, or a W-8ECI when the income is effectively connected, noting on the form that payments go to the LLC's account if useful. A W-9 in the LLC's name makes it look like a U.S. person and produces a 1099-K that won't match the pro forma 1120 + 5472 you file.

If a platform's system takes only a W-9, don't force it. First ask whether there's a W-8 path. If there truly isn't, the entity has to change: the LLC files Form 8832 to be taxed as a corporation and then gives a W-9 as a U.S. corporation; or you form a new C corporation; or you sign up with your home-country company as a foreign seller.

How three platforms handle it

Walmart assigns the classification by EIN and country of incorporation: U.S.-incorporated with an EIN is W-9; foreign-incorporated with an EIN is W-8ECI; foreign-incorporated without an EIN is W-8BEN-E, open to companies from mainland China, Hong Kong, Taiwan and 12 other jurisdictions. W-8BEN is supported only for sole proprietors from Mexico or India, so a Chinese individual can't join personally. A foreign-owned U.S. LLC lands in the W-9 group under these rules, which is exactly why it gets stuck; the full analysis is in our Walmart Marketplace guide.

Amazon runs a tax interview in Seller Central that produces a W-9 or W-8 from your answers. Foreign individuals and companies can register directly as foreign sellers with a W-8BEN or W-8BEN-E; for a foreign-owned single-member LLC, answer the interview as the owner.

TikTok Shop U.S. local stores use a U.S. company or U.S. person and give a W-9 in Seller Center; a cross-border store's home-country company gives a W-8BEN-E. A foreign-owned single-member LLC opening a local store faces the same W-9 versus W-8 question; see our TikTok Shop guide.

Home-country companies with an EIN

A foreign company that has an EIN is classified W-8ECI on Walmart. A W-8ECI tells the payer that the income is effectively connected with your U.S. trade or business and that you'll file a U.S. return. Whether a home-country company should give a W-8BEN-E or a W-8ECI depends on whether stock in U.S. warehouses amounts to a U.S. business, not on whether it happens to hold an EIN.

Keep platforms consistent, and update when things change

The same entity can't be a W-8 seller on Amazon and a W-9 seller on Walmart. An 8832 election, an owner getting a green card or a change of shareholders all mean updating every platform, bank and payment processor; under the W-8 instructions, when a change in circumstances makes a form incorrect, you notify the payer or give a new form within 30 days. A W-8BEN generally stays valid until the end of the third calendar year after the year it's signed, and platforms prompt you before it lapses.

Getting the form right

Line-by-line instructions for each form are in our W-8BEN and W-9 guide; Walmart onboarding and the foreign-owned LLC entity type problem are in our Walmart Marketplace guide. Book a free 15-minute call or add WeChat YCLUSA; for a written answer before you submit platform tax information, book a paid in-depth consultation at yclcpa.com/advisory.