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Non US-resident working remotely for an US Corporation

Asked by: Matias - 11 June, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 Hi -
I'm a non-US resident who have several opportunities to work as a contractor (contractor/consultant/freelancer, you name it) for US Corporations.
The thing is that I'd like to do so remotely from my country.

Do I have any restrictions to sign a contract with a corporation? (Meaning, would I still need a H1B Visa?)

In a tax related matter, I know I would have to pay taxes in my country (Argentina), but would the US corporation, if able to hire my services, need to pay taxes over the payments they'd make to me?

I possess a B1/B2 VISA. Would it be better (less expensive for US corporations, in a tax related matter) if I incorporate an LLC in the US and manage my clients through it?

Thanks in advance for your help & support.

Matias
Answered by: Robert Kowalski - 12 June, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Dear Matias,

US companies always prefer to work with US-based entities, out of convenience. It is also a good idea to have a US bank account.

As a foreigner you could register an LLC or C-Corporation, obtain an EIN (tax ID) for this company, and come to the US and open a bank account. Once all that is set up you can then provide your services not as an Argentinian individual, but as a US company.

Your taxation would depend on the type of entity you would register. Regardless of type of entity you choose there will be a question of international taxation. I think the LLC in that case would not pass its profit but would be taxed at the company level, and the rest of the profit would be applied to you personally and taxed in Argentina. As far as I know US has tax treaties with many countries (to prevent excessive taxation of individuals doing international business), so you should consult an accountant in Argentina, and probably one in the US, to see how your taxation would work.

Good thing about running a business is in the fact that most business related expenses are deductible, so this is something you also need to verify with an accountant. Also, if you have a company in Argentina your US LLC could "hire" its services in order to provide the actual service to US companies, this way reducing your US based income to almost nothing. But all those strategies should be discussed with an accountant, to make sure you do everything within the boundaries of the law.

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