Home – New Forums Money matters Doing work for an American Corporation? EINs etc.?

  • This topic is empty.
Viewing 10 posts - 1 through 10 (of 10 total)
  • Author
    Posts
  • #967535
    10001
    Member
    • Total posts: 8
    Up
    0
    ::

    Hi all,

    Got my appointment soon, but just clarifying something:

    Do I need to do anything special to issue an invoice and get paid by an American inc.?

    Like, I’ve seen some people talk about getting an EIN number? What’s the deal?

    Thanks.

    #1026962
    Felicity_Sapphire
    Member
    • Total posts: 45
    Up
    0
    ::

    Hi 10001,

    I have been involved in obtaining relevant numbers for a client at my old work. We basically got help from a US based accountant to prepare the necessary forms and sumbit them with the IRS as they know what is required and can liaise with them on issues.

    In addition, the identification documentation submitted with the forms had to be notarised and have an apostille attached, so you will need to enlist the services of a notary to do this.

    In the end, it was a very long, drawn out process, which was made longer by things not being done correctly the first time.

    Good luck!
    Felicity

    #1026963
    10001
    Member
    • Total posts: 8
    Up
    0
    ::

    Thanks Felicity!

    Was tax paid to the IRS or to the ATO? Or both…? :/

    Thanks.

    Felicity_Sapphire, post: 31894 wrote:
    Hi 10001,

    I have been involved in obtaining relevant numbers for a client at my old work. We basically got help from a US based accountant to prepare the necessary forms and sumbit them with the IRS as they know what is required and can liaise with them on issues.

    In addition, the identification documentation submitted with the forms had to be notarised and have an apostille attached, so you will need to enlist the services of a notary to do this.

    In the end, it was a very long, drawn out process, which was made longer by things not being done correctly the first time.

    Good luck!
    Felicity

    #1026964
    Felicity_Sapphire
    Member
    • Total posts: 45
    Up
    0
    ::

    In that situation, the US company was withholding tax from payments and we were declaring it in Australia & including the foreign withholding in Australia.

    #1026965
    10001
    Member
    • Total posts: 8
    Up
    0
    ::

    Thanks for your advice, Felicity.

    I’ve had our meeting with our accountant now, and they have advised the following:
    a) Acquire an “EIN” (Employee Identification Number) from the IRS for our Australian corporation
    b) Fill out and submit form W8-BEN to the IRS, including our EIN on it, and stipulating that withholding occurs at 5% due to the Australia-USA tax treaty.
    c) We get paid, less 5%
    d) We get to claim that 5% off our tax obligations to the ATO in Australia

    Does that sound accurate to you? Our accountant freely admitted that he’s never dealt with this stuff before, so I’m slightly concerned.

    His quote for assisting in this process was also exorbitantly high, so we’re a bit confused there as well.

    Any further thoughts would be great!

    #1026966
    JohnSheppard
    Member
    • Total posts: 940
    Up
    0
    ::
    10001, post: 31992 wrote:
    His quote for assisting in this process was also exorbitantly high, so we’re a bit confused there as well.

    You’ll have to remember that to your accountant, he/she will likely never have dealt with this before and likely never will again. The research he/she would have to do to advise you accurately I would imagine go into days or possibly week(s).

    You’d best seek out a specialist who focuses on that area who may charge you more per hour for being a specialist, but less all up…. or try an American firm…

    Although, I’m not an Accountant, so I’m just making presumptions :)

    #1026967
    10001
    Member
    • Total posts: 8
    Up
    0
    ::
    JohnSheppard, post: 31993 wrote:
    You’ll have to remember that to your accountant, he/she will likely never have dealt with this before and likely never will again. The research he/she would have to do to advise you accurately I would imagine go into days or possibly week(s).

    You’d best seek out a specialist who focuses on that area who may charge you more per hour for being a specialist, but less all up…. or try an American firm…

    Although, I’m not an Accountant, so I’m just making presumptions :)

    Thanks! That’s very good advice actually.

    I have one concern: if we take our accountants advice, what is our legal position if he is wrong?

    #1026968
    JohnSheppard
    Member
    • Total posts: 940
    Up
    0
    ::
    10001, post: 31994 wrote:
    Thanks! That’s very good advice actually.

    I have one concern: if we take our accountants advice, what is our legal position if he is wrong?

    I’d say if you get it signed and in writing you would be covered in at least that you would have the ability to sue for losses. Most professionals handing out important advice will have indemnity insurance. I can only assume that it is there for a reason.

    Thing is that if he is unsure and has said so, he/she is unlikely to sign anything :)

    But again, I’m making guesses, I can’t say for sure. The only way to feel safe is make the outlay, go to the lawyer, go to the accountant. If you can’t afford to pay those bills then ask yourself if what you are getting paid is worth it? (cause it probably isn’t)

    #1026969
    Felicity_Sapphire
    Member
    • Total posts: 45
    Up
    0
    ::

    Hi 10001,

    I have one concern: if we take our accountants advice, what is our legal position if he is wrong?

    Like John has said, all accountants must have professional indemnity insurance in order to practice. That being said, I would recommend you find a specialist in this area, be it in Australia or in the US. It may cost you a bit more now, but the time wasted in even just lodging the incorrect forms could be costly to you.

    #1026970
    BrightSpark
    Member
    • Total posts: 131
    Up
    0
    ::

    There is nothing to stop you from setting up a LLC company in the states. An LLC is a limited liability company much like our Pty Ltd companies in Australia. Nevada seems to be one of the better states to do it in, but you will need to have an agent in the state to forward any paperwork back to Australia, mainly the annual members list.

Viewing 10 posts - 1 through 10 (of 10 total)
  • You must be logged in to reply to this topic.