Fill out W8BEN-E Form as Sole Proprietorship

I have a Sole Proprietorship based in Germany and I registered as a company. Apple now wants me to fill out W8BEN-E US Tax form. I researched a little and found out that Sole Proprietorship are supposed to fill out the form W8BEN for individuals. Does anyone know what to do in this case ? I have tried to contact apple finance team but that was 10 days ago... Is it possible to fill out the W8BEN-E as a SP ? I don't even know what I should select under "Type of Beneficial Owner".

Answered by endecotp in 777395022

I researched a little and found out that Sole Proprietorship are supposed to fill out the form W8BEN for individuals.

That may only be US sole proprietorships. In the US, a one-person company is a “disregarded entity” for tax, i.e. the income/expenditure of the company is considered the income/expenditure of the owner. In contrast, I am a one-person business in the UK and we do not have the concept of “disregarded entities”; I suspect Germany is probably the same.

I have a distant memory that the US rules may make specific exceptions for foreign entities that would be disregarded in the US but aren’t in their own countries. So I believe you should fill out the corporate forms.

It is a long time since I did this. Maybe someone else has more recent experience.

Accepted Answer

I researched a little and found out that Sole Proprietorship are supposed to fill out the form W8BEN for individuals.

That may only be US sole proprietorships. In the US, a one-person company is a “disregarded entity” for tax, i.e. the income/expenditure of the company is considered the income/expenditure of the owner. In contrast, I am a one-person business in the UK and we do not have the concept of “disregarded entities”; I suspect Germany is probably the same.

I have a distant memory that the US rules may make specific exceptions for foreign entities that would be disregarded in the US but aren’t in their own countries. So I believe you should fill out the corporate forms.

It is a long time since I did this. Maybe someone else has more recent experience.

tell me what you put in the: Textfield "Title" and 2.

I'm not sure what you mean by that.

What did i"If you entered disregarded entity, partnership, simple trust, or grantor trust above, is the entity a hybrid making a treaty claim?" (yes or no)

I didn't enter "disregarded entity, partnership, simple trust, or grantor trust" - I entered "corporation" - so I didn't answer that.

Hang on, what sort of business are you? I'm confused. You say that you "registered as a company" - did you do the DUNS number check? I got the impression you were describing a limited company with one owner, but now I have read your posts again and I am doubting that. If you're not a limited company, you shouldn't have been able to register with Apple as a company. What is the German term for the legal structure of your business?

I am a registered merchan. This means that I have a sole proprietorship that is registered. I also have a DUNS number. But I am still regarded as a natural entity and not a legal entity. I thought corporations are for legal entities only ?

OK. I don't know what should happen. I am a bit surprised that you were able to register with Apple as a company, i.e. I would have expected the DUNS result to report your legal status and for Apple to reject that. But clearly that's not what happens. Sorry for causing confusion.

Fill out W8BEN-E Form as Sole Proprietorship
 
 
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