Bidding only on jobs posted by LLC

[andreasb1]

Hi all,

so here is the problem I am facing and I believe many others from EU like me. I am independant contractor with my own LLC (I am single employee) and because of the taxation complications I do not want to bid on any jobs that are not posted by LLC. Ones coming from USA are subject to reverse charge for me and other coming from EU are sujbect to tax exemption between LLCs and this is the reason why I want to work only with LLC. Working as LLC for an individual I have to issue invoice with VAT and that complicates everything and in the end increases my cost of work. 

I've worked before with many individuals that have a company and are registered as individuals at upwork, but at a time of bid I couldn't know that. So I have to spend my connects to place a bid, ask job poster is he LLC and only if he confirms I can proceed. As you could probably imagine, most of them weren't LLCs so time and connects wasted for nothig. It would be great if somehow all accounts are forced to chose company or individual upon account creation. I am aware this probably doesn't play well with Upwork agency setup but that really is tax payers problem. You chose to uphold taxation laws in USA and EU, yet your platform is not LLC friendly. 

I suggest you put this on your milestones and talk to tax experts how to adjust your platform so everyone like me can do business easily.

Thanks!

[filip_knezevic]

Hi Damir,

I don't think you will get a lot of clients that way.

Why don't you use Payoneer card (it has an USA bank account) and withdraw directly from the ATM with your Payoneer card? You will lose more cash compared to PayPal method, but you shouldn't have issues with taxes.

[andreasb1]

Hi Filip,

I think you missed the point. Taxation laws are very complicated and I have no issue with money withdraw.

Lets say individual posts a job and I bid for it. Now if individual is based in the EU my bid must contain price with VAT of the country where he resides. Automatically I am more expensive than other individuals who bid on the same job. It gets even worser, as my bid must include a VAT and VAT is paid by me instead job poster which is nonsense. Then it is extra work on me to send that VAT collected to taxation organs of the country job poster is from. Everywhere in the world VAT or sales tax is paid by one who purchases goods. If you would have system in place where job posters pay for VAT things would be far more transparent but I am aware that you would have far less jobs posted which is not really my problem as you take fee from workers and not job posters.

Secondly I do not want to even work with individuals because of all complications with VAT, working just with companies saves me a lot of headache and work related with LLC is usually longer term work which I prefer.