Requesting IRS Form W-8 From International Freelancers and Vendors
In Liquid, you can request IRS Form W-8 from your international freelancers and foreign vendors in just a few steps.
If you’ve been using Liquid, then you know how easy it is to onboard new vendors. Liquid’s default onboarding process for adding new vendors and freelancers includes Liquid’s master contract agreement, a Non-Disclosure Agreement, and the completion of a IRS Form W-9. While this works for freelancers and vendors in the United States (or US citizens overseas) and allows you to send 1099s, the W9 form is only for US vendors and freelancers. Instead of a W9 form, you must also collect IRS Form W-8 from your international freelancers and foreign vendors and Liquid allows you to quickly collect W8 forms as well.
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Collect W8 Forms from International Freelancers and Foreign Vendors in Liquid
- The first step is navigating to the Onboarding tab from the side navigation options on the left.
- If you don’t have any onboarding processes set up, go ahead and press the + Process button to start creating your first onboarding process. If you already have an existing onboarding process, go ahead and skip to Step 7.
- First, you’ll have to verify that you have signing privileges for contracts and legal documents at your company.
- Select Quick Start to use Liquid’s suggested process and template — this includes Liquid’s master contract agreement, a Non-Disclosure Agreement, and an IRS Form W9.
- Fill out the next several forms to verify your company information, which will be added to the Liquid templates. Be sure to add your signature, which will only be attached to fully executed documents.
- Once you’ve completed these steps, you now have a Standard Onboarding (US) process.
- Now, click the ˅ to expand the menu options for your existing onboarding process and press Clone.
- Click the ˅ on your new cloned process and press Edit.
- Start by deleting the IRS Form W-9 from this process by pressing the Trash Can icon.
- Then, click “Select a step to add to your process” and select “Fill out IRS Form W-8”.
- Rename the process so you know which process is for International Vendors and includes the W-8 form.
- Press Save Process.
- Now, when you invite a new Vendor, you will see your new W-8 Onboarding Process available for sending to your Vendors.
- For international freelancers and foreign vendors you’ve already invited to Liquid, we recommend removing the vendor and reinviting them with the new onboarding process that includes the W-8. In doing so, you’ll retain all past relationship information (work orders and invoices) with those vendors — and you’ll be adding a crucial W8 form to your compliance documentation stored on Liquid.
- Congratulations, you’re set up to request W-8 forms from your international freelancers and foreign vendors!
When your vendor completes their W-8 and other onboarding processes, those documents will be securely saved. Access these files anytime by clicking the card for that vendor on the Vendors page while logged in.
If you have invited additional users to help you manage your business on Liquid, they will only be able to view this sensitive tax data if they have been added with Administrator or Controller permissions.
Start using Liquid today to activate the liquid workforce and improve your compliance processes for working with international freelancers and foreign vendors.
Updated: July 10, 2020