Personal Finance

Form W-8: what is "disregard entity"?

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  • Apr 13th, 2020 11:01 pm
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[OP]
Deal Addict
Oct 19, 2007
2147 posts
795 upvotes

Form W-8: what is "disregard entity"?

I applied for a Stripe account and I'm supposed to fill out this Form W-8. What exactly is this "disregard entity"? I did a google but I still don't understand what it means. I asked Stripe support but CSR said to contact an accountant since they don't want to give me the wrong answer.


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6 replies
Newbie
Mar 31, 2020
10 posts
8 upvotes
Under US tax law, certain entities can be treated as "disregarded" for US tax purposes. So they exist as legal entities, but under the US tax law, they are not viewed as a separate entity to be taxed.

What type of entity is opening the account?
[OP]
Deal Addict
Oct 19, 2007
2147 posts
795 upvotes
metalcobalt wrote: Under US tax law, certain entities can be treated as "disregarded" for US tax purposes. So they exist as legal entities, but under the US tax law, they are not viewed as a separate entity to be taxed.

What type of entity is opening the account?
that is what I don't understand. "type of entity"?
Newbie
Mar 31, 2020
10 posts
8 upvotes
What is the legal entity opening up the account? Is it a corporation, or a partnership, or you as an individual?
Deal Addict
May 23, 2006
1017 posts
217 upvotes
Vancouver
An example is an LLC.

An LLC is not being taxed; instead, the owner of an LLC will be taxed on LLC's income.

That's why an LLC is called a "disregarded" entity.
[OP]
Deal Addict
Oct 19, 2007
2147 posts
795 upvotes
metalcobalt wrote: What is the legal entity opening up the account? Is it a corporation, or a partnership, or you as an individual?
Individual (me). So what do I put in the field?
Newbie
Mar 31, 2020
10 posts
8 upvotes
You can leave it blank (unless you have a DBA/"doing business as" name)

Re: LLC. A US LLC can be treated as a disregarded entity, a partnership, or even a corporation for US tax purposes, depending on whether it has made an election and/or how many people own the entity. So it's not that straight forward sometimes, and why the people asking for the form would hesitate about telling you what to put down.

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