Hello everyone,I need some input on doing business outside the U.S.I have a single-member LLC in NJ under consulting (also have another full-time job with W-2).Let's say I have a client in the U.S and I develop a software/app for them for $5kCan I do it under "consulting" or do I need any other type of business for my single-member LLC?Then let's say I work with the developers outside the U.S. and they develop the app for $4kWhen it comes to filing taxes, how do I proceed in this scenario?I know I got $5k and $4k is the expense.Do I create 1099 or something for the developers outside the U.S.?What else do I need? Any other document for the developer company?Do I need to notify when the $4k transaction took place (even before the tax season)? I haven't done this before but now I have a client to do it and wonder how I should proceed. Thank you,

R

rookietaxguy

Question

Doing business outside the U.S. for a single-member LLC

Forum|Forum|2 years ago
February 1, 2024
1 reply
0 views

Hello everyone,

I need some input on doing business outside the U.S.

I have a single-member LLC in NJ under consulting (also have another full-time job with W-2).
Let's say I have a client in the U.S and I develop a software/app for them for $5k
Can I do it under "consulting" or do I need any other type of business for my single-member LLC?
Then let's say I work with the developers outside the U.S. and they develop the app for $4k
When it comes to filing taxes, how do I proceed in this scenario?
I know I got $5k and $4k is the expense.
Do I create 1099 or something for the developers outside the U.S.?
What else do I need? Any other document for the developer company?
Do I need to notify when the $4k transaction took place (even before the tax season)?

I haven't done this before but now I have a client to do it and wonder how I should proceed.

Thank you,

R

RobertB4444

You need proof that you paid the developer company. You can't issue them a 1099 because they're a foreign entity. A really good and detailed invoice is great. Along with proof of payment (bank statement, wire transfer receipt, etc) that is all that you need to save in order to prove the expense.

Otherwise you just enter it as an expense on your tax return and don't worry about it.

@rookietaxguy

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"