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Elisaveta_T
Level 1

Signing US based freelancers from abroad?

In my home country, I have started a successful solo Air Conditioning cleaning business. 
I have created a very unique and compelling sales pitch, and it has worked wonders so far. I no longer do any of the sales or the cleaning myself, I have hired people as independent contractors/freelancers to do everything. I have a couple of people that do door-to-door/face to face sales on commission; they get fixed amount of money for every client they secure. And there are a couple of people who do the cleaning with their own tools and vehicles, so they are independent contractors to whom I outsource the work. Insert a lazy boss man stereotype here, but everyone is happy with the arrangement. The contractors determine their own work hours, and the clients are happy with the service.
In my country, this type of legal arrangement with the workers is possible, but I don't know if it's the case in the US and if i can copy this existing model? The reason I want to recreate the business in the US is quite obvious: people have more disposable income and consume more goods and services in general. I have a couple of legal questions.
Do I need to create a US based LLC to sign contracts, or can I hire people remotely?
Do I need to pay taxes in US if only act as an intermediary between two freelancers? They are going to pay their taxes in the US since they live there. Technically, I'm not selling any product or service in the country I'm acting as an intermediery between two free agents, but the taxman might see things differently.
Under what legal forms should the workers/contractors register: freelancer or llc? Freelancing, I assume, would be easier as a setup.

4 Comments 4
4Gal
Level 10

Signing US based freelancers from abroad?

This statement confused me

I'm not selling any product or service in the country

 

How will you get orders and payments from your clients in the US?

Rainflurry
Level 13

Signing US based freelancers from abroad?

@Elisaveta_T 

 

"I have a couple of legal questions.  Do I need to create a US based LLC to sign contracts, or can I hire people remotely?  Do I need to pay taxes in US if only act as an intermediary between two freelancers? They are going to pay their taxes in the US since they live there. Technically, I'm not selling any product or service in the country I'm acting as an intermediery between two free agents, but the taxman might see things differently."

 

It sounds like the business is working well.  Best of luck to you in your growth.  IMO, you need to contact a US-based law firm that has both employment and tax attorneys.  The penalties for getting this wrong will far outweigh the small cost of getting these questions answered correctly before you expand to the US.  

Elisaveta_T
Level 1

Signing US based freelancers from abroad?

Both parties, the door to door salesman and the AC cleaner are subcontractors. I receive orders from the d2d person and ac cleaners "purchase" the orders from me.

4Gal
Level 10

Signing US based freelancers from abroad?

@Elisaveta_T 

I don't think you need to have a US based company in this case. You should consult a tax advisor in your country about how you should file taxes to report your income and expenses to foreign entities.

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