durrelllrobert
Elite Nomad
Posts: 7393
Registered: 11-22-2007
Location: Punta Banda BC
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Mood: thriving in Baja
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Question about doing business in Baja
Business in Baja:
I have a
company in San Diego, we supply construction professionals
to work in Baja. These people are all American, independent
contractors and are 1099 workers so there is no problem
paying them. Recently we have had some Mexican nationals
inquire about these same positions. Does anyone know the tax
implications on an American company compensating someone
from Mexico who does not have a US SSN? Should I contact a tax
attorney? In the U.S? Mexico??? Any advice would be greatly
appreciated!!! I don't know where to start.
Thanks,
Michele Little
Michele@littlecg.com
619-207-7242
Bob Durrell
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Bajaboy
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How can those US workers legally work in Baja?
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durrelllrobert
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They live in US and cummute to work every day and also have
MX work visas.
Bob Durrell
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DENNIS
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I believe work visas have to be specific as to employer and job, but the real question remains....what are they calling a work visa? Their original
inquiry tells me they don't have a clue.
"YOU CAN'T LITTER ALUMINUM"
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durrelllrobert
Elite Nomad
Posts: 7393
Registered: 11-22-2007
Location: Punta Banda BC
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Quote: Originally posted by DENNIS  |
I believe work visas have to be specific as to employer and job, but the real question remains....what are they calling a work visa? Their original
inquiry tells me they don't have a clue. |
They must have all their ducks in a row since they have had a US citizen employed on the Toyota expansion construction site in Tecate for over 2
years. (Toyota could not find a MX national qualified to do the job)
[Edited on 5-3-2016 by durrelllrobert]
Bob Durrell
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woody with a view
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check U2U
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JoeJustJoe
Banned
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Registered: 9-9-2010
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| Quote: Originally posted by durrelllrobert | Business in Baja:
I have a
company in San Diego, we supply construction professionals
to work in Baja. These people are all American, independent
contractors and are 1099 workers so there is no problem
paying them. Recently we have had some Mexican nationals
inquire about these same positions. Does anyone know the tax
implications on an American company compensating someone
from Mexico who does not have a US SSN? Should I contact a tax
attorney? In the U.S? Mexico??? Any advice would be greatly
appreciated!!! I don't know where to start.
Thanks,
Michele Little
Michele@littlecg.com
619-207-7242 |
What a strange possibly complicated question to ask on a "Baja forum, when they should be taking to their accountant or lawyer! But I see it's not
Michele Little, who is asking, it's Durrelrobert who is asking the questions.
I also see this is not the first time a "Baja Nomad" members is trying to do favors for Michele Little.
Here are some links to their business " Little Consulting Group, Inc." which is some kind of Safely management, and OSHA consulting group, that
provides also expert testimony in construction lawsuits.
You have to wonder why these construction experts can't figure out a tax question for themselves, or why they don't have their own accountant that
could answer the question for them?
Here are their links:
http://littlecg.com/
http://servicesdonecheap.com/index.php/clients/business/comp...
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JoeJustJoe
Banned
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Location: Occupied Aztlan
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Mood: Mad as hell
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The second question that raises red flags for me is why would a US Construction firm in the US want to hire American construction workers to go to
Mexico and work in Baja?
You would think this so-called construction company, would do what American companies do in the US, and that's hire mostly Mexican construction
workers, and pay them at a fraction of what they would pay American workers. Whoever heard of hiring illegal Americans to go work construction in
Mexico! That's funny.
Well, "Little Consulting Group, Inc' seems to be on the right track, and now wants to hire Mexican nationals to work for their American construction
company in Baja.
If this is a serious question, and I do have my doubts. Is the question is no, you do not need to issue a 1099 to foreign workers, provided the
foreign worker does all the work outside the USA. However, if the foreigner worker does any work inside the US, then yes you need to issue a 1099. ''
You however will have to verify that the worker is indeed a non US citizen, and you may want them to fill out and sign a Form W-8BEN, in case you're
audited.
Read about Form W-8BEN here:
https://www.irs.gov/uac/Form-W-8BEN,-Certificate-of-Foreign-...
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gsbotanico
Nomad
Posts: 209
Registered: 7-28-2015
Location: Cardiff by the Sea, CA
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I worked independently in Mexico for many years with an FM3 work permit, later converted to an FM2 and permanent residency. I was always paid by a
Mexican company. I was responsible for the permits and US income taxes. The Mexican companies were responsible for any Mexican taxes. As a US
citizen the Mexican companies needed to demonstrate a need for my services and maintain a certain ratio of non-Mexican to Mexican workers.
But a Mexican working in Mexico getting some kind of payment from a US company? Time for a tax expert, maybe two, one in each country. It may be
necessary to set up a company in Mexico.
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