Paying Overseas Project Partner


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I am in the state of Montana, USA and have an app that my friend in the Netherlands and I built. I'm in charge of taking payments and I'm getting ready to send a payment his way. I'm wondering, what is the cheapest way to send a payment both now and long term? Right now we're not incorporated (and don't intend to be for this project) but it's something I'm considering for future projects. I guess I'm not sure how to go about this in the most legal yet cost effective manner. Any suggestions?

Payments International Partnerships

asked Apr 7 '13 at 02:17
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Jeremiah Prummer
441 points

1 Answer


1

Ask your friend to send you payment instructions from his bank. Then take that to your bank and ask them so send him the money. Simple as that.

Regarding taxes on his side (or yours) you should consult a lawyer.

answered Apr 7 '13 at 02:55
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Mojsilo
594 points
  • Would the bank transaction be free? – Jeremiah Prummer 5 years ago
  • Ask your bank what the fee would be for an international money transfer. It will **not** be free. Price vary depending on the US bank and range from $5 to $100. Be very careful you know what it will cost before you do it. – Gary E 5 years ago
  • @JeremiahPrummer not lawyer, a (good) CPA. – Littleadv 5 years ago
  • PayPal? As for taxes, you only pay taxes to your own country. The receiving part must pay tax at his end. – Steven 5 years ago
  • Thanks for the help everyone! I ended up making this payment with Paypal, but I'll probably end up talking with a CPA to see if there's a better solution. – Jeremiah Prummer 5 years ago
  • @Steven not so simple. When paying to a foreign party US-sourced income, the payer must make tax withholding. – Littleadv 5 years ago
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Payments International Partnerships