I have an interest and been doing some research on outsourcing IT work to another country.
Customer / Company abc — hires my company ( an LLC ) by entering into consultant contract
for 5 Software Developer for 6 month of work at rate of X / day. My company LLC takes payment from Company abc. Then in another country ( India ) I start another company LLCindia and hire 5 software developer and assign these to Company abc.
Money flows from ABC -> my LLC -> LLCindia -> payroll for indian developer
1) Would I need professional insurance of omission and liability for my software developer ? I think yes but this crosses international boundaries and varies from country to country so it's difficult to say ?
I researched the cost which is 500 – 1k per year per developer USD
2) what would be an efficient way to avoid taxation and get my developers in india pay correctly?
ABC pays -> my LLC which pays -> LLC india -> payroll
if I hold money in my LLC I will pay tax income here, if I transfer all my earnings to LLC india,
my money will be in india and I will pay india corporate tax rate/ or whichever country I outsource to.
3) what is an efficient way to transfers money from one country to another via company ?
I could request payment to be wired directly to LLC india ? but I think most small company / medium size won't do international wires ? hassle to pay ?
I expect to lose % of transfer fee when I go from LLC -> LLC india due to crossing countries
4) do I even need an LLC in the US ? can my LLC india enter into contract here in the US ?
does anyone have any resource where I can read more or get more answers ?
or any insight from your experience would be helpful.