Hello. I am starting an online translation services using foreign freelance workers located outside the U.S. I have been reading various IRS publications and I am confused. Assuming that a foreigner working in Europe gets paid more than $600 in a year from me, do I have to issue a 1099? Do I have to withhold taxes on what I pay that person? If so, how much? What else do I need to do? Since I am just starting out and money is tight, I can't afford a tax advisor now. Thanks.
Welcome and hello to you too.
Everybody going into business should have both an accountant and a lawyer (and maybe an insurance agent).
Since you are just starting out, you can pay your tax advisors NOW or pay the IRS LATER.
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