Outsourcing

[Destined]

Hi Fastlane folks,

I have an idea that I want to have created, for me by an outsourcer. I have a paypal account that is one level above the regular one and I have a paypal account that is linked to a company.

When I am getting my project created, do I need to pay the outsourcer with the company paypal account or will the 2nd tier/ paypal account be ok as well? I plan on paying this outsourcer monthly as well. Do I need to have this individual sign some sort of contract as well, while he/she is creating my project for me?

Thank you for reading this.

 

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[Developmental]

I would imagine the firm you are outsourcing to will have a preferred method of payment that they will specify so check with them and pay via a method that you are comfortable with and I would say a contract is a very useful and worthwhile document - for both parties - helps prevent misunderstandings and can help to firm up proceedings

 

[Destined]

I would imagine the firm you are outsourcing to will have a preferred method of payment that they will specify so check with them and pay via a method that you are comfortable with and I would say a contract is a very useful and worthwhile document - for both parties - helps prevent misunderstandings and can help to firm up proceedings

Thank you for your reply. I am not 100% sure, that this project will be a smashing success, but I want to give it a go anyways. Most of these outsourcers will accept paypal, but I am wondering if I should pay and do this project with the company paypal account. I have 2 accounts and
one is used to buy stuff and the other (company account).

If my project is created and paid with a normal paypal account will my liabilities be much higher. Should I just pay with the company paypal account to reduce the risk....

thats my question

 

[Visionquest]

The "outsourcer" person you are going to be paying monthly. If this person is acting as an independent contractor you will not have to deal with to many legal variables. you just have your company hire him and away you go. But yes I would have a contract in place that he is going to do the job to completion for the allotted sum you are offering to pay him. All is fair in business and I have seen a ton of people get burned. If you don't know him personally it is a good idea. I never have one of my businesses engage with another without the specifics of the jobs listed and signed by both parties.
Just a way to protect yourself
Hope this helps

 

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[Developmental]

Ahh I understand

Well if it is not inconvenient I imagine it would be best to have the payment come from company funds rather than an individual's account. Easier for taxation purposes and (potentially) easier/safer from a liability point of view depending on how you are financing the outsourced work

I can't imagine a situation where it would be beneficial to pay from a personal account so I would personally pay from a company account

 

[Visionquest]

Always Always Always pay from your company. Get in that habit all of the time. This is the first step to getting the government off of your back. You get direct tax benefits even in the beginning when your small.

 

[Destined]

Yea, I guess this is the route, I must go with . Pay them with the company paypal.

 

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