LLC taxation for foreign under 18 freelancers.

[TrentS]

I am currently opening a LLC and the laws are very unclear.

• In the United States when you pay a freelancer you give them a 1099 form. This is what allows you to write off the payment as an expense instead of being taxed on the profits. If they are under 18. There parents essentially just need to cosign.
• When hiring a UK and EU freelancer I am quite confused. How does one send out payments and such and make it not subject to be taxed. Say I use PayPal does it automatically save all the documents. And I just submit to the IRS. And then what happens when the user is under 18. Do I pay the parents?

 

[Zero]

I am currently opening a LLC and the laws are very unclear.

• In the United States when you pay a freelancer you give them a 1099 form. This is what allows you to write off the payment as an expense instead of being taxed on the profits. If they are under 18. There parents essentially just need to cosign.
• When hiring a UK and EU freelancer I am quite confused. How does one send out payments and such and make it not subject to be taxed. Say I use PayPal does it automatically save all the documents. And I just submit to the IRS. And then what happens when the user is under 18. Do I pay the parents?

EU law is quite complicated, and additionally, many of the EU countries have their own laws regarding things like this. I'd actually recommend either asking one of the major service team operators such as MelleJunior or give a lawyer a try, not cheap, but better than having a struggle later on. The issue is that paying someone for a service is substantially different than hiring someone to work for you, in some countries this even requires the freelancer to register themselves as self-employed along with filing a bunch of paperwork - especially EU citizens. Can't tell you much about the UK though, unfortunately.

 

[TrentS]

EU law is quite complicated, and additionally, many of the EU countries have their own laws regarding things like this. I'd actually recommend either asking one of the major service team operators such as MelleJunior or give a lawyer a try, not cheap, but better than having a struggle later on. The issue is that paying someone for a service is substantially different than hiring someone to work for you, in some countries this even requires the freelancer to register themselves as self-employed along with filing a bunch of paperwork - especially EU citizens. Can't tell you much about the UK though, unfortunately.

Thank you

 

[PixelMine]

I'm living in the EU and do some freelance work for a US based company and they had me fill in a W-8BEN.