# Employees abroad employees - W-8BEN



## fishnet786 (Dec 8, 2016)

Hi,

I am an indian and have owned and IT freelancing service for a few years now and have been sending clients in the US. I mostly get paid via PayPal (indian PayPal) and get money right in my bank account... But PayPal have their fees and huge currency conversion fees as well, which comes down to around 7% total before I have cash in hand.

Recently, I had a friend suggest that I should US based merchant (stripe) and have money transferred in a US bank account (BOFA) and wire money to myself in India which would only cost me the wire transfer fee ($35) and nothing else.

My friend was kind enough to setup the account bank and stripe for me and have started using it already.

What kind of tax liability would he fall under for not paying taxes or actually for not showing any income at all or not even filling the income tax return?

Most of the money comes into the account and then is used for paying bills (online servers and all) and a few thousand are wired every month.


Any insight would be helpful? Also, the number is less than $80,000 per year.

Thank you,


----------



## Bevdeforges (Nov 16, 2007)

I guess I don't quite understand your arrangement - but if your clients are paying you via your bank account, that money is yours and needs to be reported on your tax returns. If he is operating the account for you, it depends on what arrangement you have with him for compensating him for his time and trouble. 

Or perhaps I am misunderstanding the set-up.
Cheers,
Bev


----------



## fishnet786 (Dec 8, 2016)

Bev,

I believe that answers my question to some extent.

Thank You,


----------

