How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask ShawnA Your Own Question
ShawnA
ShawnA, CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
Category: Tax
Satisfied Customers: 2884
Experience:  CPA, Professor, CFP. CGMA, Business Consultant, Professor, PFS I have decades of experience answering these questions.
15641319
Type Your Tax Question Here...
ShawnA is online now
A new question is answered every 9 seconds

We are doing IT Consulting and Staffing business in California

Customer Question

We are doing IT Consulting and Staffing business in California (USA). One of our client has selected a candidate who's from Canada and has his own company registered in Canada. Can we do business with this Canadian company? He will be doing the project in USA.
Do we need any document/ paper work to do this business to satisfy IRS? Are we required to withhold any tax before we release any check to this Canadian company?
My second question/ scenario is: can we hire independent consultant and pay them in India by wire transfers?
Do we need any document/ paper work to pay them to satisfy IRS? Are we required to withhold any tax before we make any wire transfer?
Submitted: 1 year ago.
Category: Tax
Expert:  ShawnA replied 1 year ago.
Hello. My specialty is focusing on YOUR Financial needs. Financial Planner/Business Owner for 20 years. Retired CPA
You can absolutely do business in Canada.
Expert:  ShawnA replied 1 year ago.
I would not hire him as an employee (too complicated) but as an independent contractor (no tax filings for you). He will have to get a US tax ID but there is a tax treaty that will help him offset taxation on the personal; level.
The same is true for the Indian consultants.
As long as they have tax Id that is what is needed to start
Expert:  ShawnA replied 1 year ago.
The below link explains about withholdings and such that your company should be making.
I'll also offer you a call to discuss this in further detail.
Expert:  ShawnA replied 1 year ago.
If you are interested ins speaking all you need do is accept the offer