I am not a US citizen and I want to create a company and work with many contractors outside US. It will be software development company. Company will be delaware based LLC, and office will be located in CA.
What taxes should I fill, and which documents should I prepare when I am paying something to my contractors.
1) As I understand I should fill form 1042 for all payments that is made to foreign entities (and non resident aliens).
Should I withhold any tax if all services is performed outside US?
a) If all contractors outside US as I understand that source of income is outside US according to this table: http://www.irs.gov/businesses/small/international/article/0,,id=96459,00.html According to this I shouldn't withhold tax. Am I right?
b). There is also a tax treaty between US and Russia, so as I understand in any case I do not need to withhold 30%. Should I use (1) or should I fill something to report tax-treaty.
2) Is all payments to contractors can be treated as deductions? How to calc tax at the end of the year.
3) Which taxes should I fill at the end of the year?
Software LLC Foreign Tax Iphone
If you are in the US you will need to get a CPA involved in this to get this right.
But based on your points: