Cross-border clients - collecting money
Hello LinkedIn:
I run a small general partnership with my father doing website design and development. Lately, I've been finding a lot of freelancing opportunities across the border (primarily Canada, but occasionally in the United Kingdom). I'm just curious - are there any financial requirements that I should be following when I work with these clients?
Knowing how our government tends to be about this type of thing (visas, border patrol, etc.) I thought it would be a safe idea to do a little research before I make any sudden moves.
Thanks!
Clarification added 11 months ago:
When I talk about financial requirements, I mean like any special paperwork I should be filing or that type of thing. I know how I'm going to collect money (checks and PayPal) but I'm not sure if I have to do anything special to report this money. Thanks!
Good Answers (2)
Hariharan M
International Tax Consultant
Best Answers in: Regulation and Compliance (1), Financial Regulation (1)
Dear Chris
It is very common for freelance consultants to work across countries. On paperwork the following are important
a) An agreement with client on job
b) It is duty of client hiring you to protect you from local citizen empowerement laws
c) It is common to outsource work nowadays
d) Until you are required to travel there is no need to bother about visa, permit etc
e) Need for local paperwork comes, only when you operate from Say Canada etc
Apart from above, there are other consideration
a) On payments made to you by clients, tax would be deducted
b) You need to check the tax agreements to avoid double tax
c) There may be permanent establishment issues etc
Hence what you need is a report from INternational tax consultant to verify your business model.
Chris,
If you are doing business in Canada, you would have to register with Canada Revenue Agency and obtain a GST number as you will have to charge this tax to all canadian companies. As well you will also have to report this income in Canada. A Canadian tax return would have to be prepared but you would declare this tax paid on your US Corporate return, as Canada and US have tax treaty.
The process isn't that complex , you should ask your CPA for more info.
I say go ahead if you can make more business for yourself.
Good Luck
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More Answers (2)
You can't go wrong with hawala banking, Chris.
Bob W
Integration Lead, Collections and Recovery Ops, Lloyds Banking Group
Best Answers in: Risk Management (1)
You may have to consider local data protection issues particularly if you cross into Europe/UK
