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MenuClose friend from outside the U.S asked me if I can use my account to receive money for his online payments. How much % should I charge him?
My friend wants to sell his apps and receive money from his work but he is a foreign guy who can't set up an account in the U.S (and his country, Bolivia, doesn't have banks that work with paypal or any other service that can facilitate this.). I want to say yes but I don't know how much should be my cut if I consider income taxes and other logistic expenses. Any thoughts?
Answers
Depending on average transaction size, number of transactions and the potential risks you are taking on (i.e what are you responsible for if your friends product or service isn't delivered on?). Anywhere from 2-20% could work depending on the above.
As for accounting, I would recommend keeping the transactions in a separately coded lines of revenue and expenses so you can clearly show the in and out flow of money for his app. It will be taxed as income so you can include that in your fee if you wish.
Also know that banks these days are very sophisticated with detecting fraud and money laundering so ensure you document the arrangement with your friend so you can easily show everything is on the up and up.
I hope that helps!
Hello, I have experience in the international trade and payment issues around the world.
You should be aware that, under your national legislation the incomes perceived in your account will be accountable and you should declare and pay the relevant taxes. Anyway, I am not and expert in the American taxes, so I am no going to enter in this issue.
I should assume that your friend is interested in selling his apps in the USA market, and I should assume that is your trusted friend, so there are some options that should consider as the incorporation of one company under American Laws , where you and your friends will be partners, so the incomes will be shared following the distribution you agree, so you can help your friend providing for a service he needs and you will have separated bookkeeping. This issue takes some steps from the negotiation to the distribution of dividends.
If you have the relevant information, we can arrange a call to check everything in detail.
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