W-8BEN or W-8BEN-E: which form does a non-US referral partner give a US payer?

The verdict: the form follows whoever gets paid

Choose the form by asking one question: who signs the partner agreement and receives the reward? If it is you, as a non-US individual, the answer is Form W-8BEN. If it is your non-US company, partnership or other entity, the answer is Form W-8BEN-E. If the recipient is a US person, neither applies.

The IRS sets out that split on its About Form W-8BEN page: foreign individuals give the W-8BEN to the payer that requests it, entities use the W-8BEN-E instead, and US persons, including resident aliens, use a W-9. You hand the completed form to the payer. You do not file it with the IRS.

The mistake partners make is choosing by habit. A consultant who bills clients through a limited company but joins the referral program in their own name should give a W-8BEN, because the individual is the payee. The same consultant joining through the company should give a W-8BEN-E. The form tracks the contract and the bank account, not the business card.

This is general information, not legal, tax or financial advice. Confirm with your own counsel, tax adviser or professional body before acting.

How do the two forms compare side by side?

The individual form is short; the entity form is long because it covers every kind of foreign entity, most of which will never be you.

When does the W-8BEN win?

Pick the W-8BEN when a natural person outside the US is the partner of record. That covers more people than you might expect.

• Sole traders and sole proprietors. In most countries a sole proprietorship is not a separate legal person, so the owner gives the W-8BEN even when trading under a business name.
• Bankers and consultants who join in their own name. If rewards will be paid to a personal account, the individual is the beneficial owner.
• Retired operators and board members. Former chief executives, non-executive directors and operating advisers who make one or two introductions usually join as individuals.

The walkthrough of the W-8BEN for referral rewards explains each part of the individual form for a one-off, success-based reward.

When does the W-8BEN-E win?

Pick the W-8BEN-E when a company, partnership or other entity formed outside the US signs the partner agreement and receives the reward. Typical cases:

• A corporate-finance boutique that wants rewards booked as firm revenue rather than personal income.
• A one-person consulting company that contracts in its own name, such as a UK limited company, a German GmbH or an Australian Pty Ltd.
• A partnership of advisers that splits fees under its own partnership agreement.

The entity form asks for two statuses that individuals never see: the entity's classification for US withholding purposes and its FATCA status. The W-8BEN-E guide for advisory and consulting firms goes through both, part by part.

Which edge cases need an adviser?

Most partners fit cleanly into one column. These four do not, so settle them before signing either form.

1. Single-member entities that are disregarded for US tax. A disregarded entity is, by definition, not treated as separate from its owner for US income tax purposes, so the owner's status usually drives the choice of form. The IRS instructions for the W-8BEN-E deal with this case separately. If your one-person company has that treatment, do not assume the company signs.
2. Non-US LLCs and similar hybrids. How a foreign LLC is classified for US tax purposes decides which status box it ticks on the W-8BEN-E. The local label does not settle it.
3. A non-US firm with a US office or staff working in the US. Income connected with a US trade or business can call for a different W-8 form, such as the W-8ECI, rather than either form compared here.
4. US citizens and green-card holders living abroad. They are US persons for tax purposes and give a W-9 wherever they live.

A three-question decision rule

Answer in order. The first yes decides the form.

1. Is the recipient a US person, meaning a US citizen, a resident alien or a US entity? Yes: Form W-9, which gives a payer the correct taxpayer identification number for its information returns.
2. Is the recipient a natural person, including a sole trader? Yes: W-8BEN.
3. Is the recipient a non-US company, partnership, trust or other entity? Yes: W-8BEN-E, after checking the edge cases above.

Illustrative: one introduction, two possible payees

Illustrative and fictional: Ana runs a two-person corporate-finance practice in Lisbon through a Portuguese private limited company, and she introduces the owner of a US logistics software business. If she registers in her own name and has rewards paid to her personal account, she gives a W-8BEN and the reward is her personal income at home. If the company registers and is paid, the company gives a W-8BEN-E, ticks its classification and FATCA status, and books the reward as firm revenue.

Neither route changes what the US company receives. The choice turns on Ana's own tax and accounting position, which is why her accountant should settle it before she registers rather than after the first reward becomes payable.

What does the choice mean for a SourceX reward?

Partners earn 25% of the eligible platform fees SourceX actually collects from the referred company's licensing deals, capped at $100,000 cumulative per referred company. Rewards become payable only after the buyer pays and SourceX receives its fee; an introduction, meeting or signed agreement alone does not trigger payment, and no reward is guaranteed.

That timing gives you room to get the structure right. Decide at registration whether you or your firm is the partner of record, keep the matching form ready, and avoid switching payee halfway through, which can mean fresh paperwork under the program terms. If the role itself is new to you, start with what a SourceX referral partner does.

Which form you give and whether anything is withheld are separate questions. The page on 30% US withholding and non-US referral rewards covers the second one and what to ask the payer.

Next step

Decide who will be the partner of record, you or your firm, then register as a partner in that name. Boutiques weighing a firm-level registration can see how it fits their practice on the page for cross-border M&A advisors with US clients.