LLC. I got a contract to create design for 10,000. I dont create design myself, I pay 9,000 to subcontractor located in Europe. Do i pay tax from profit or all amount?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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TurboTax Self Employed Online

Vanessa11_2

Level 13

No, the $9,000 will be deducted as a business expense. If this was a US subcontractor you would be required to file a 1099 Misc for them.

However, since you are paying a foreign Subcontractor be sure you are properly reporting and withholding any taxes if necessary as there are special reporting requirements for that situation. You may want to contact a local tax professional to be sure you are properly handling the reporting

https://www.irs.gov/businesses/small-businesses-self-employed/reporting-payments-to-independent-contractors

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