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Tax Advice Needed - Working Remotely For US Employer

I am planning to move to San Miguel for the coming school year. I want to work remotely for a US-law firm on US-related cases.  I will not be giving any legal advice to Mexicans.  I'm forming a LLC in the US.  The law firm will contract with the LLC, which will employ me.  The LLC will be paid in the US.

The question the law firm has is whether they will need to register to do business in Mexico, which would be a deal breaker if it is complicated and/or expensive.  I'm happy to register the LLC in Mexico if that is required.

If anyone has advice on this, I would greatly appreciate it. Likewise, if you have lawyers that you can recommend to assist us, that would be great.

Thanks!

Tracey Kitzman

Mexico has nothing to do with it.  Pay US taxes and that's it

What ever you do, you will have to declare every year, the money you earn anywhere.  I just know that working and living overseas. The IRS will allow you a tax exemption. But you cannot go back and stay in usa for more than 30 days oer year.  You need to talk in both countries to people who can advise you and that is not easy to find.  I have had accountants in each country making mistakes.  Surf the internet, the Irs website, qnd find yourself an extremely good accountant. 
You would need to declare the IRS FBAR, that is for your bank accounts in Mexico.
IT IS COMPLEXED.

Have employer deposit to US bank account and use ATM card to get cash here.  Very easy

sparksmex :

Have employer deposit to US bank account and use ATM card to get cash here.  Very easy

Based on my limited knowledge, that should do it.  FBAR doesn't come into effect because you have no foreign bank accounts.

There could be other considerations if you were to have significant operating expenses in Mexico.

The man wants to work in Mexico. So all that is complexed.

Launia Tate Sullivan :

The man wants to work in Mexico. So all that is complexed.

How is it complex at all if he's paid in the US and working from a home office and has no other needs than office supplies?  He's not working IN Mexico in the sense that is covered in the requirements for a work visa.

It is just my opinion. Working in a country and be paid in USA is an usual thing.
With my husband we have worked for decades in many countries in different continents.
We were always paid in Houston but still if working in a country, Gabon, Bulgaria, Malaysia, Tunisia,,Uk,
Etc etc.  We  always needed a work permit in each country and a tax declaration in each country, and in USA, we had a tax exemption becausemof that but could not come back to Usa more than 30 days.  This is just my experience of decades. I believe Mexico is not different.
I feel it is always better to mention to people who do not know, to check thoroughly always be extremely careful. Laws always change and rarely to our benefits.
It is not that dimple but ok if you aware of the rules of USA AND THE RULES OF EACH COUNTRY WHERE YOU WILL WORK AND RESIDE.  If you do not reside in the foreign country, the IRS does not allow any foreign exemption. And maybe, let s say Mexico, will have that person declare his work and income. Even if USA has a tax agreement with Mexico.  The paper work is not simple.
This is not retirement status.  I have a business in Mexico and  and.
I find all all tnose discussions, things seem to be too easy. The facts are not always like that when you deal with two countries.

gudgrief :
Launia Tate Sullivan :

The man wants to work in Mexico. So all that is complexed.

How is it complex at all if he's paid in the US and working from a home office and has no other needs than office supplies?  He's not working IN Mexico in the sense that is covered in the requirements for a work visa.

But he is working IN Mexico. In his residence where he works on a regular basis. That is working IN Mexico. You are going to be taxed one place or the other. Remember, as a Resident in Mexico, Mexico taxes you on world wide income.

It would be unwise to go ahead without a complete answer.  Anyone close to an INM office might be able to ask for him.  Alternatively, he could ask at a Mexican consulate.  Other experts may be looking for fees.

Is there some reason why the law firm doesn't want to ask its sources in the US about possibly requirements?

Mexico cares about competing with Mexicans for jobs and salaries from Mexican companies that avoid Mexican income taxes.  That doesn't apply.  He's not even opening his own Mexican comnpany.

gudgrief :

Mexico cares about competing with Mexicans for jobs and salaries from Mexican companies that avoid Mexican income taxes.  That doesn't apply.  He's not even opening his own Mexican comnpany.

I am not questioning this, but to assume that just because you are resident in a foreign country you can avoid paying taxes as a US citizen. You can not move across the river from McAllen to Reynosa and avoid taxes in the US and Mexico. There is no magic provided by the Internet to be working for an US company, being paid with US dollars and having that deposited in an US bank, then saying that you are exempt from US taxes just because you live across the river. Many people are claiming that filing IRS from 2555 are forgetting about US/Mexico tax agreements.

Now with that said, yes, many people are avoiding taxes to the US and Mexico and telling people that it is legal. I am not a CPA nor a lawyer, however, I am not going to tell anyone that all this is legal. You may not be a resident of the US, but you are a resident in some country.

joaquinx :
gudgrief :

Mexico cares about competing with Mexicans for jobs and salaries from Mexican companies that avoid Mexican income taxes.  That doesn't apply.  He's not even opening his own Mexican comnpany.

I am not questioning this, but to assume that just because you are resident in a foreign country you can avoid paying taxes as a US citizen. You can not move across the river from McAllen to Reynosa and avoid taxes in the US and Mexico. There is no magic provided by the Internet to be working for an US company, being paid with US dollars and having that deposited in an US bank, then saying that you are exempt from US taxes just because you live across the river. Many people are claiming that filing IRS from 2555 are forgetting about US/Mexico tax agreements.

Now with that said, yes, many people are avoiding taxes to the US and Mexico and telling people that it is legal. I am not a CPA nor a lawyer, however, I am not going to tell anyone that all this is legal. You may not be a resident of the US, but you are a resident in some country.

There's no assumption there that he can avoid US taxes.  They get you wherever you live or earn your money.

I WAS wondering if he was earning any income IN Mexico for Mexican Impuesto Sobre la Renta purposes.

Nobody said anything about avoiding US taxes.  My pensions and a small income from Google go to a US bank .... and they have for over 10 years.  Mexico does not know and has absolutely no reason to

For all the googling I have been able to do, this is the only direct reference that seems to apply to expats and their US pensions.
https://internationalliving.com/countries/mexico/taxes/

That backs up your post.

US/Mexico Tax agreement exempts pensions including Social Security from taxation in Mexico.

joaquinx :

US/Mexico Tax agreement exempts pensions including Social Security from taxation in Mexico.

I think this covers it.
https://www.irs.gov/pub/irs-trty/mexico.pdf

You just have to find the correct phrase.

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