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Technical Hiring: My startup is a NY LLC and we're hiring an employee in Bangalore, India as a developer. Am I required to pay or withhold taxes in the U.S. for him?
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Michael B Rosmer, Advisor for offshore structuring & banking answered:

In addition to what everyone else has said you need to be careful because depending on the nature of his work if you've got an employee over there you could end up with corporate income tax obligations in India as well as the US, which is simply way more trouble than you want to deal with.

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