Is it legal for a non-American without a green card, to work for an
American company, from abroad? I am an Israeli/British, living in the
UK, and can issue Israeli or British invoices. I was offered a job by
a US company (research work through the internet), on condition
it is legal for me to work. So is it? And how do we do it,
technically.

---

Request for Question Clarification by politicalguru-ga on 24 May 2004 10:59 PDT

Dear Assaf, 

How are they going to pay you? 

Are you going to work as an independent contractor, paying your taxes
as an independent/free-lance business owner, or are you expecting this
company to hire you as a full employee?

---

Clarification of Question by assafga-ga on 25 May 2004 11:04 PDT

Hi,

In answer to your questions:
Yes - I will work as an independent contractor, paying my taxes as a
business owner. They will NOT hire me as an employee.
As to the method of payment - they mentioned Paypal.

Thanks,
Assaf

Hi! Thanks for the question.

Yes this is perfectly legal. In fact the IRS says that since you are
working outside the US, you will be except from paying US taxes. You
will have to inquire with your accountant about the approriate taxes
you must pay in your home country instead.

"Under Sec. 1441(a) of the Internal Revenue Code, compensation paid to
a nonresident alien for services performed entirely outside of the
U.S., is considered to be foreign source income, and no U.S. tax
withholding is required. This exclusion applies to services performed
as an independent contractor and as an employee."

"EMPLOYEE OR INDEPENDENT CONTRACTOR?"
http://www.dbf.state.fl.us/bosp/nra_c.html


"Question: I am a foreign citizen working in my native country as a
consultant for a U.S.-based company. Must I pay U.S. tax on my
income?"

"Answer: No. Because you are performing services outside the U.S. and
are not a U.S. resident or citizen, your income is foreign sourced and
is not subject to U.S. tax."

"Employees vs. Contractors; Foreign Consultants; Moving Expenses and
IRS Collection Limits"
http://www.taxprophet.com/faq/980920.htm 
 

Since you are living in the UK then you can really receive payment
through Paypal.

Paypal Non-U.S. Accounts
http://www.paypal.com/cgi-bin/webscr?cmd=_display-approved-signup-countries-outside


Search terms used:
"independent contractor" outside US Paypal

I hope these links would help you in your research. Before rating this
answer, please ask for a clarification if you have a question or if
you would need further information.
                 
Thanks for visiting us.                
                 
Regards,                 
Easterangel-ga                 
Google Answers Researcher