W8-BEN form needed?

[Wanderien]

Ah, perhaps I panicked a bit too fast again…
And the default rules are talking about the entity, and not its owner.

Foreign-Owned Domestic LLC​

• LLC is formed in Wyoming (U.S.) → domestic entity under IRS rules (§301.7701-5(a)).
• Non-U.S. owner → foreign ownership, but the entity itself is domestic.
• Key Rule:
  • For domestic entities, the default classification is disregarded (§301.7701-3(b)(1)) regardless of ownership.
  • Foreign ownership of a domestic entity does not trigger corporate classification (§301.7701-3(b)(2) only applies to entities formed outside the U.S.).

So this means:

• U.S. domestic LLC is disregarded by default (Schedule C, not corporate return), even though non-U.S. owner.
• Form 8832 is not required to change classification , it’s only needed for foreign entities (not domestic ones).

Am I seeing this correctly?
Would definitely make sense as to why no tax expert or LLC pushers have brought form 8832 to my attention before.

 

[daniels27]

@Wanderien If you have a WY US LLC and you are the sole member, it is automatically disregarded. You can change it any time with Form 8832. If you make an election how to be treated, you will be bound for 60 months. Both US and non-US companies can use the form. Maybe read this one first?
https://en.wikipedia.org/wiki/Entity_classification_election
https://www.irs.gov/forms-pubs/about-form-8832

I do not know what experts you have been in touch with. Normally, this frorm is among the basics of US into for European companies. But we are here in the nice of digital nomads that use US LLC. And then a bunch of jerks that illegally use it for tax evasion and that will get caught within the next few years.