US Based Relatives Collecting and Sending Payments to Me

blackmongol

Newbie
Joined
Feb 11, 2013
Messages
7
Reaction score
0
I'm a part-time freelancer and I'm experiencing some issues with receiving payments via international bank transfer, from a company that I've been working with long -term. These problems are expected to continue and the only alternative available to the company is Paypal, which isn't available in my country. My only option is to ask a cousin who is a US resident and Greencard holder to receive the payment in his Paypal account and transfer it to me through Western Union after withdrawing the payments to his bank account. Will this be an issue for my cousin tax-wise? if he isn't retaining this money would it still be considered income and will he have to declare the amount in his returns and pay taxes on it?

The amount isn't expected to be huge and shouldn't exceed $15k and thats over a 12 month period, if I choose to go through with it for that long. With that being said If this has the potential to feck shit up for my cousin than I'd rather find an alternative. Any input from folks knowledgeable about this would be greatly appreciated.
 
Why don’t you open an LLC and have him be the registered agent?
Will I have to register it in my country? If so that would be a long , tiresome and expensive process and I don't think my current income would justify all of that. If in the US can you provide a little more information on how that would work? Having to pay US taxes would also be difficult for me at this stage.
 
In which country are you living? There are different laws for different countries for foregin transaction. You can search on Google about that "tax treaty benefits with US". Got lots of information about that.
 
I live in Pakistan. I've found a treaty related to this on the IRS website but it dates back to 1957. I'm going through it but I'm not sure if its still valid as a lot has changed since then :P
 
Try Transferwise. My Company pays me through this company every month and the money directly comes to my bank account (usually within 2 hrs in India). I did see pkr in the list so you should be fine. Oh and yeah, their fees as much lesser than paypal or any other companies AFAIK.
 
This seems to be a good option. I looked into Transferwise a few months ago but there was a restriction on companies sending money to Pakistan that restriction doesn't seem to be there anymore.
 
Back
Top