z*****y
发帖数: 330 | 1 My friend has a software company in US which is sole proprietorship, and
he wants to hire some people in China to do project. Is it legel and can it
be normal business expense? and what's the normal process? Thanks.
can he deduct the cost of it as normal business expense? thanks. |
k**y
发帖数: 1379 | 2 I t is legal, but there are more reporting to do. For US contractors, you
will issue 1099-misc at year end. You have to issue something similar to
international contractors. Cannot remember the name, check IRS website.
it
【在 z*****y 的大作中提到】
: My friend has a software company in US which is sole proprietorship, and
: he wants to hire some people in China to do project. Is it legel and can it
: be normal business expense? and what's the normal process? Thanks.
: can he deduct the cost of it as normal business expense? thanks.
|
a********3
发帖数: 238 | 3 IF the contractor is no US Citizen/Green Card and performs the work outside
US, there's no tax reporting responsibility for the company.You can get this
information from IRS publication
If the non US citizen/green card performs work in US, employer needs to
withhold 30% tax and issue a form like 1099 (which I could not remember the
name) |
B********e
发帖数: 312 | 4
it
【在 z*****y 的大作中提到】
: My friend has a software company in US which is sole proprietorship, and
: he wants to hire some people in China to do project. Is it legel and can it
: be normal business expense? and what's the normal process? Thanks.
: can he deduct the cost of it as normal business expense? thanks.
|
z*****y
发帖数: 330 | 5 In term of 'work outside of US'，you mean physically outside of US, right?
If then, I can simply put this expense to the busniess expense 'service
contractor/labor category'. For the process and document, it's same with US
contractor, the only difference is tax. is my understanding correct?
Thank you all for the great help!
outside
this
the
【在 a********3 的大作中提到】
: IF the contractor is no US Citizen/Green Card and performs the work outside
: US, there's no tax reporting responsibility for the company.You can get this
: information from IRS publication
: If the non US citizen/green card performs work in US, employer needs to
: withhold 30% tax and issue a form like 1099 (which I could not remember the
: name)
|
