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FAQ for LP Tax Status: What does “Taxed as a Partnership” mean?

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This field asks how your investing entity is treated for U.S. tax purposes — specifically, whether it’s considered a partnership or a corporation under IRS rules.

  • If “Yes” (Taxed as Partnership) → this means the entity is treated as a flow-through vehicle that passes income to underlying investors. The IRS form used for this is Form W-8IMY.
  • If “No” (Taxed as Corporation) → this means the entity is treated as a stand-alone corporation that’s the beneficial owner of the investment. The IRS form used for this is Form W-8BEN-E.
You can review the official IRS instructions for both forms here:
Because this classification depends on the structure of your entity, we recommend confirming with your tax advisor which definition applies to your situation.

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