Tax Information

Before you can receive royalty payments from LabelGrid, you must complete the appropriate IRS tax form. The form you need depends on your location and whether you’re an individual or a business entity.

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Why tax forms are required

LabelGrid is required by the U.S. Internal Revenue Service (IRS) to collect tax information from all recipients of royalty payments. This information:

• Determines your tax withholding rate
• Ensures compliance with U.S. tax regulations
• Enables LabelGrid to process your royalty payments
• May reduce withholding through tax treaty benefits

Complete your tax form to receive payments

You cannot receive royalty payments until your tax form is completed and submitted. Make sure to complete this step early to avoid payment delays.

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Which form do you need?

Your situation	Form required
U.S. citizen or resident (individual or business)	W-9
Non-U.S. individual (not a business entity)	W-8BEN
Non-U.S. business or organization	W-8BEN-E

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Accessing tax forms

1. Click your profile icon in the top-right corner
2. Select My Account
3. Click Personal & Business Details in the sidebar
4. Find the Tax Forms card and click to complete your form

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Form W-9 (U.S. persons)

Use Form W-9 if you are a U.S. citizen, U.S. resident, or a U.S.-based business entity.

Required information

Part 1: Taxpayer information

Field	Description
Name	Your legal name as shown on your income tax return
Business name	Your business or DBA name if different from above (optional)
Federal tax classification	Select your entity type (see below)
Exemptions	Exempt payee code and FATCA code if applicable (optional)
Address	Your street address, city, state, and ZIP code

Tax classification options

• Individual/sole proprietor - For individuals or single-member LLCs
• C Corporation - For C Corps
• S Corporation - For S Corps
• Partnership - For partnerships
• Trust/estate - For trusts or estates
• Limited liability company (LLC) - Select the tax classification (C, S, or Partnership)

Part 2: Taxpayer Identification Number (TIN)

Choose one:

• Social Security Number (SSN) - For individuals (format: XXX-XX-XXXX)
• Employer Identification Number (EIN) - For businesses (format: XX-XXXXXXX)

Your TIN must match the name on line 1 of the form.

Part 3: Certification

• Confirm you have the capacity to sign for the named taxpayer
• Provide your signature (draw in the signature box)
• Enter the signature date

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Form W-8BEN (Non-U.S. individuals)

Use Form W-8BEN if you are an individual who is not a U.S. citizen or resident.

Required information

Part 1: Identification of beneficial owner

Field	Description
Name	Your full legal name
Email	Contact email address
Country of citizenship	Your country of citizenship
Permanent residence address	Your legal address (no P.O. boxes)
Mailing address	Only if different from permanent address
U.S. TIN	Only if you have a U.S. SSN or ITIN (optional)
Foreign TIN	Tax ID from your country of residence
Date of birth	Your date of birth (YYYY-MM-DD format)

Part 2: Tax treaty benefits (optional)

If your country has a tax treaty with the United States, you may be eligible for reduced withholding rates.

To claim treaty benefits, provide:

• Country of residence - Must have a tax treaty with the U.S.
• Treaty article and paragraph - The specific treaty provision you’re claiming
• Withholding rate - The reduced rate you’re claiming (e.g., 10%)
• Type of income - Usually “Royalties”
• Reason - Explain why you qualify for treaty benefits

Tax treaty information

Not all countries have tax treaties with the U.S. Consult with a tax professional or visit the IRS tax treaty tables to see if your country qualifies.

Part 3: Certification

• Confirm you have the capacity to sign
• Enter your printed name
• Provide your signature (draw in the signature box)
• Enter the signature date

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Form W-8BEN-E (Non-U.S. entities)

Use Form W-8BEN-E if you are a non-U.S. business, organization, or entity (not an individual).

Required information

Part 1: Identification of beneficial owner

Field	Description
Organization name	Legal name of your entity
Email	Contact email address
Country of incorporation	Where your entity was legally formed
Disregarded entity	Name of entity receiving payment, if different
Chapter 3 status	Your entity type for tax purposes
Chapter 4 status	Your FATCA status (if applicable)
Permanent residence address	Entity’s legal address (no P.O. boxes)
Mailing address	Only if different from permanent address
U.S. TIN	If your entity has a U.S. EIN
GIIN	Global Intermediary ID Number (if required)
Foreign TIN	Tax ID from country of incorporation

Chapter 3 status options

Common entity types include:

• Corporation
• Partnership
• Simple trust
• Complex trust
• Private foundation
• Disregarded entity
• International organization
• Foreign government

Chapter 4 status (FATCA)

Select the appropriate FATCA status for your entity. Common options include:

• Active NFFE (Non-Financial Foreign Entity)
• Passive NFFE
• Participating FFI
• Exempt beneficial owner

Part 3: Tax treaty benefits (optional)

Similar to W-8BEN, entities may claim reduced withholding rates under tax treaties:

• Country - Entity’s country of residence
• Limitation on benefits - How you qualify for treaty benefits
• Treaty article - The specific provision being claimed
• Withholding rate - The reduced rate being claimed
• Type of income - Usually “Royalties”
• Reason - Why your entity qualifies

Additional certifications

Depending on your Chapter 4 status, you may need to certify:

Active NFFE:

• Less than 50% of gross income is passive income
• Less than 50% of assets produce passive income

Passive NFFE:

• Confirm whether you have substantial U.S. owners
• Provide U.S. owner information if applicable (name, address, TIN)

Certification

• Confirm you have the capacity to sign for the entity
• Enter your title (e.g., CEO, Director)
• Enter your printed name
• Provide your signature (draw in the signature box)
• Enter the signature date

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Common issues and solutions

”Form not submitted” error

Make sure all required fields are completed:

• All fields marked with asterisks (*) must be filled
• Your signature must be drawn in the signature box
• The date must be in YYYY-MM-DD format

Signature not appearing

• Clear the signature box and try again
• Use a mouse or touchscreen to draw your signature
• Make sure your browser allows canvas drawing

TIN validation failed

• Verify your SSN, EIN, or foreign TIN is entered correctly
• Remove any dashes or spaces if the system doesn’t accept them
• For W-9: TIN must match the name on line 1

Tax treaty rate not applying

• Confirm your country has a tax treaty with the U.S.
• Provide the correct treaty article and paragraph
• Explain why you qualify in the “reason” field

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After submission

Once you submit your tax form:

1. Review confirmation - You’ll see a confirmation that your form was received
2. Form on file - Your tax information is now stored securely
3. Payments enabled - You can now receive royalty payments
4. Updates - If your information changes, submit a new form

Form validity

Tax forms generally remain valid for three years from the date of signing, or until your information changes. LabelGrid will notify you when a new form is required.

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Updating your tax information

If any of the following changes, submit a new tax form:

• Your legal name
• Your address
• Your country of citizenship or residence
• Your tax classification or entity type
• Your TIN (SSN, EIN, or foreign TIN)

To update, simply access the tax forms section and complete a new form. The new submission will replace your previous form on file.

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Tax withholding rates

Default withholding

If you don’t complete a tax form or claim treaty benefits:

• U.S. persons (W-9): Subject to backup withholding (currently 24%)
• Non-U.S. persons (W-8BEN/W-8BEN-E): Subject to 30% withholding on U.S.-source income

Reduced rates

Tax treaty benefits may reduce or eliminate withholding. Common treaty rates for royalty income range from 0% to 15% depending on your country.

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Getting help

IRS resources

• W-9 Instructions (PDF)
• W-8BEN Instructions (PDF)
• W-8BEN-E Instructions (PDF)
• Tax Treaty Tables

Professional advice

Tax professional recommended

If you’re unsure which form to use or how to claim treaty benefits, we recommend consulting with a tax professional familiar with U.S. international tax requirements.

Questions about tax forms? Contact our support team.