W-8BEN or W-9: Which One Applies to Your Structure?

Hi, I’m CPA Maximiliano Mira Salas, international tax advisor.Today we analyze a key topic for foreign owners of U.S. LLCs: when to use Form W-8BEN or Form W-9, depending on your entity’s structure and its tax classification with the IRS. 🧾 In briefWhenever a U.S. entity or client pays you, they will request a tax identification certification. If you have a U.S. LLC with foreign owners, you must submit either a W-8BEN or a W-9, depending on how your LLC is classified for U.S. federal tax purposes. Key differences: W-8BENApplies when your LLC has a single foreign owner. For federal tax purposes, this structure is treated as a disregarded entity under Treas. Reg. §§ 301.7701-3(b)(1)(ii) and 301.7701-2(c)(2)(iii). This means the LLC exists legally, can open bank accounts and operate, but is disregarded for tax purposes and the reporting obligation falls directly on the individual foreign owner. Therefore, the W-8BEN is completed using the owner’s information, not the LLC’s. W-9Must be submitted when the LLC has more than one member (multimember) or has elected to be taxed as a corporation (C-Corp) or partnership. In this case, the entity is treated as a U.S. person under Treas. Reg. § 301.7701-5(a) and may complete the W-9 using its own EIN to receive payments without withholding. In summary: Submitting the incorrect form may result in 30% withholding or banking delays. Common mistakes: 🚫 Submitting a W-9 as a foreign single-member LLC🚫 Omitting a valid ITIN or EIN🚫 Failing to update forms after changes in structure or tax residency Verify which form applies to your LLC and make sure it is kept up to date with your clients or banks. An early review helps avoid unnecessary withholding and facilitates IRS compliance. At FINANCERS, we provide a practical guide to correctly complete the W-8BEN or W-9 based on your LLC type and tax situation. 📩 Contact us and we’ll send you, at no cost, the appropriate form along with step-by-step instructions to complete it correctly.

FATCA in Argentina: ARCA Begins Notifying Taxpayers with U.S. Accounts

Technical Wednesday. Hi, I’m CPA Maximiliano Mira Salas.In this week’s newsletter, we analyze the first notifications issued by AFIP–ARCA under the FATCA agreement between Argentina and the United States, and review the key points that taxpayers with accounts, investments, or financial structures in the U.S. should evaluate. 📝 Update: ARCA Has Started Disclosing Information Received from the U.S. Argentina’s Federal Tax Authority (AFIP), through the ARCA system, has begun sending electronic notices to Argentine taxpayers whose accounts were reported by U.S. financial institutions under the FATCA (IGA Model 1) framework. This marks the official beginning of the automatic exchange of financial information between both countries. The reports transmitted by the IRS include data on: Note: Account balances and capital gains are not yet reported, although these may be incorporated in future phases of the agreement. 📋 What Is FATCA and How Does It Affect Argentine Residents? The Foreign Account Tax Compliance Act (FATCA) is a U.S. federal law requiring foreign financial institutions (FFIs) to identify and report accounts belonging to U.S. taxpayers. Under the intergovernmental agreement (IGA Model 1) signed with Argentina in 2022, a reciprocal exchange of information was established between the IRS and AFIP–ARCA, aimed at preventing tax evasion and strengthening financial transparency.From now on, both tax administrations will receive data on financial accounts connected to residents of the other country. 💡 What This Means for Argentine Taxpayers With the start of automatic reporting, ARCA has begun notifying taxpayers who hold accounts or investments in the U.S. that have been reported by U.S. banks. Authorities will cross-check this information against local tax filings (such as Wealth Tax and Income Tax returns). Maintaining consistent documentation and reporting will be essential to avoid discrepancies or audits. However, there are key exceptions: 📌 Legal and Accounting Disclaimer This communication is for informational purposes only and does not constitute legal, accounting, or tax advice. Each situation should be individually evaluated by a licensed professional, considering tax residency, entity type, and applicable international treaties. At FINANCERS, we help you stay compliant while optimizing your international structure.We advise entrepreneurs, investors, and freelancers from Latin America with operations in the U.S., analyzing FATCA’s scope under the local IGA, reviewing and filing W-8BEN / W-9 forms, structuring entities efficiently to minimize tax risks, and coordinating compliance between U.S. and local regulations. If you’re unsure how FATCA affects you — or want to confirm whether your structure is subject to reporting — contact us for a personalized technical review. CPA Maximiliano Mira SalasInternational Tax Advisor | FINANCERS 🇦🇷🇺🇸

Monotributo: Increase in Thresholds and Unification of the Annual Income Cap

Attention, Monotributo taxpayers! A major change is coming to the simplified tax regime that affects you directly. The official bill to modify the Monotributo includes a significant increase in the invoicing thresholds and the unification of the maximum annual income limit at ARS 68 million, regardless of business activity. What does this mean for you? In this post, we’ll explain in detail the main proposed changes, how they might affect you, and the steps you can take to prepare. We’ll also share tips to help you improve your online presence and blog performance. 1. Summary of the Monotributo changes: Increase in invoicing thresholds: Unification of the maximum annual income:ARS 68 million for all business activities. Increase in monthly contributions: 2. How will these changes affect you? The impact depends on your line of business and current invoicing level: If your current invoicing exceeds the new thresholds: If your current invoicing falls within the new thresholds: 3. What can you do to prepare? Here’s an updated chart with the new proposed categories: Category Ingreso Máximo Anual Actual Ingreso Máximo Anual Propuesto Impuesto Integrado Actual Proposed Integrated Tax (Services) Proposed Integrated Tax (Commerce) A $2.108.288,01 $6,45 million $1.047,86 $3.000 $3.000 B $3.133.941,63 $9,45 million $2.018,89 $5.700 $5.700 C $4.387.518,23 $13,25 million $3.452,09 $9.800 $9.000 D $5.449.094,55 $16,45 million $5.671,23 $16.000 $14.900 E $6.416.528,72 $19,35 million $10.787,67 $30.000 $23.800 F $8.020.660,9 $24,25 million $14.840,88 $42.200 $31.000 G $9.624.793,05 $29 million $18.878,58 $76.800 $38.400 H $11.916.410,45 $44 million $43.150,91 $220.000 $110.000 I $13.337.213,22 $49,25 million $53.938,71 $437.500 $175.000 J $15.285.088,04 $56,4 million $63.385,73 $525.000 $210.000 K $16.957.968,71 $68 million $72.817,31 $735.000 $245.000 Thinking about starting your business in the U.S.?If you have questions or need guidance, reach out to us.