Welcome and thank you for giving me the opportunity to assist you with your tax question.
In addition to the W8-BEN, you would be required to sign Form W-8ECI, Certificate of Foreign Person's Claim That Income Is Effectively Connected With the Conduct of a Trade or Business in the United States. You can read more about this form here:
http://www.irs.gov/instructions/iw8/ch01.html#d0e52 and you can view the actual form here: http://www.irs.gov/pub/irs-pdf/fw8eci.pdf
The withholding rate remains the same at 30%.
Please let me know if you require further information or clarification.
Thank you and best regards.
Hi bkb1956, thanks for your response.
I have 3 more questions in clarification:
1. Are there any other reporting obligations?
2. Should I request the broker (Schwab) to provide a Form W-8ECI in addition to the w*-BEN?
3. Reading more about this form, I see a Note which states: "If you receive a Form W-8ECI without a U.S. TIN entered on line 6, you generally may not treat the income as effectively connected with a U.S. trade or business and you must apply the appropriate presumption rules." Is this something I( should be concerned about?
Thank you for coming back to me with your follow-up questions.
As to 1, there are no other reporting obligations.
As to 2, the W-8ECI is for the LLPs you mentioned, and the W8-BEN is for all else.
As to 3, there is nothing else you need to be concerned about.
Please let me know if you have need any further information or clarification.
It's been my pleasure to be of assistance to you.
Thank you and best regards,
Just a short note to thank you for the "excellent" rating. It is most appreciated. If you have any questions in the future, please feel free to put "for bkb1956 or Barb" in the subject line, and I will be happy to assist you. Recommendations to family and friends are also always appreciated.
Thanks again, and best regards,
The rating was well deserved.
I certainly will.git back to you if the need arises, and will keep the recommendation in mind.
Your kind words are most appreciated.
I look forward to assisting you in the future.
All the best,