When managing payments and reimbursements through a fund, it’s important to follow specific guidelines to ensure everything is processed correctly. This article outlines the steps for making payments to external vendors, as well as processing reimbursements to Leads, including the necessary documentation, tax forms, and wire instructions.
Payments Directly to Vendors (Entities Not on AngelList)
When making payments to vendors that are not on the AngelList platform, there are a few key requirements to ensure proper processing:
- Invoice Requirements:
- Ensure the invoice is made out to the Fund.
- If the invoice is unclear about what services or goods it covers, be sure to provide relevant context.
- If the invoice is not in USD, that is acceptable. However, please ensure you understand the exchange rate implications.
- Tax Forms:
- For first-time payments, the appropriate tax forms must be provided. While AngelList cannot advise on the correct form, we have general guidance:
- U.S. Domestic Payees: Provide a W-9 form (instructions).
- Non-U.S. Payees: Provide a version of Form W-8:
- Foreign individuals: W-8BEN (instructions).
- Foreign entities acting as intermediaries: W-8IMY (instructions).
- Other foreign entities: W-8BEN-E (instructions).
- Wire Instructions:
- All payments must be made via wire transfer. If the vendor does not accept wire payments, ask the Lead to cover the expense and request reimbursement (most LPAs allow for this).
Reimbursements to Leads
When processing reimbursements to Leads, there are several key steps and requirements:
- Invoice Requirements:
- Ensure the invoice is made out to the Fund.
- If the invoice is unclear about what services or goods it covers, be sure to provide relevant context.
- If the invoice is not in USD, that is acceptable. However, please ensure you understand the exchange rate implications.
- Proof of Payment:
- To process reimbursements, proof of payment or a valid invoice must be provided.
- Tax Forms:
- For first-time payments, the appropriate tax forms must be provided. While AngelList cannot advise on the correct form, we have general guidance:
- U.S. Domestic Payees: Provide a W-9 form (instructions).
- Non-U.S. Payees: Provide a version of Form W-8:
- Foreign individuals: W-8BEN (instructions).
- Foreign entities acting as intermediaries: W-8IMY (instructions).
- Other foreign entities: W-8BEN-E (instructions).
- Wire Instructions:
- Similar to vendor payments, all reimbursements must be made via wire transfer. If the vendor does not accept wire payments, ask the Lead to cover the expense and request reimbursement.
By following these guidelines, payments and reimbursements can be processed smoothly and in compliance with fund agreements. Always ensure that the correct forms and documentation are submitted and that wire instructions are verified to avoid delays in processing.
If you have further questions about specific payments or need assistance with the process, feel free to reach out to your Account Manager or lead@angellist.com.