Paying taxes on freelancers working overseas

Hi!

TWO QUESTIONS!

Question 1) I am considering creating a startup business here in Germany (I'm an American). If I do this, I will probably hire the help of some freelancers around the world, for piece-work (like, $200 to write some custom software or to come up with a graphic style).
Any idea if I would have to pay Germany taxes on this?

Quesiton 2) In the meantime, I am not earning money here. I have a permanant residence status. Do I have to pay the US any kind of taxes while I am away? (permanently!)

Tchuss & Danke
Nan

If you are planning on starting a business here in Germany, you should consult with a tax advisor from the beginning, perferably one who is a CPA in the US as well.

Good luck...

You do have to file a US tax return while living here. Whether or not you end up paying any taxes depends on your personal situation (this is why I advise finding someone here who knows the US system as well). You also have to file a Report of Foreign Bank and Financial Accounts if you have over $10,000 in accounts outside of the US at any time during a calendar year.

http://www.irs.gov/pub/irs-pdf/f90221.pdf

Also you generally have to pay tax on worldwide income while resident in Germany. A tax advisor will explain all this and more to you.

Yep – talk to a tax advisor. Do it correctly from the beginning.