Handling outsource programming

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Handling outsource programming

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Attila

posts: 16

Aug 04, 2008 9:15 PM ET Quote Report Abuse

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Hello,

I am about to get "real" with my dream of starting a business. I am thinking to create an LLC for it, doing photography and programming consulting in my spare time (I am employed currently).

I am also thinking to hire a programmer outside of US to help me with some programming tasks.

Do you have any advice on the LLC forming (things I should look for) and also how could I handle the payment of somebody outside of US.

I have been reading startupnation, listening to the SN radio. I have a basic idea of what I need to do (except on how to pay somebody if its outside US). I plan on talking to an accountant and have him help me record my LLC. I am looking for advice, or maybe checklist points I should know/remember, if you have any.

thank you very much for your help
Attila

john64

posts: 3

Aug 05, 2008 12:27 AM ET Quote Report Abuse

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Attila,

First you need to decide which country you want to outsource. You can do some search on the internet to find tech companies outside the US in a particular country. Contact them through email for general information. Check three or four companies to compare the prices, normally the prices for your project shouldn`t be much different

I don`t think you need to hire a programmer permanently. Project based is much easy to handle. Most foreign countries accept US dollars, so you can send US dollars after calculating foreign currency exchange rate with that country plus wiring transfer fees from your bank.

Once you decide to proceed, establishing a LLC is easy, you can do it online in your state. Follow the procedures. It takes about half an hour to do so.

I don`t think you need to hire an account now. Once you open the business and have revenues, then hiring an accountant is an easy job. I recently finished one outsourcing project from China. The only problem outsourcing in China will probably be language barrel. They understand English, but not as good as us. They know the technology very well. They do things very efficient and fast. But you need to communicate with them very clearly. I am originally from China, so the project went very well. The cost is much lower there than here.

Richard

Attila

posts: 16

Aug 05, 2008 6:47 AM ET Quote Report Abuse

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Hi Richard,

Thanks for your reply. I am curious what was the process to pay the company/programmer? They sign a contract with you and based on that you send them the money? How do you account for it? Just as you would for a normal salaried worker?

thanks,
Attila

john64

posts: 3

Aug 05, 2008 7:31 PM ET Quote Report Abuse

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Attila,

After both of you agree what the project scope is and how much it is for your project, you need to draw a contract, letting both parties sign the contract. It is legally binded. You can pay them (to the company) 30% upfront as down payment. When they finish the project, you pay the rest 70%. The percentage is negotiable. In my case I paid 50% upfront. Normally they are reliable. They will finish the project on time.

Check www.baidu.com to begin with if you want to outsource your project in China. Type key words software development to see what it comes up. There are many tech companies specializing in doing outsourcing projects from other countries. If you need my help, let me know.

Richard

Attila

posts: 16

Aug 05, 2008 10:51 PM ET Quote Report Abuse

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Thanks Richard for your reply. I actually plan on going in Eastern Europe as I am from over there and I already have friends I can count on. My main problem is, if they don`t have a company how can I "hire" them. Should I ask them to form a company or I can pay them as consultants, how can I put their payment on my financials...

Attila

googleguy

posts: 65

Aug 05, 2008 11:38 PM ET Quote Report Abuse

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You can also check out www.odesk.com for overseas programmers. Some of our clients have had success with this site and the payment system is very secure. Good Luck!!!

www.searchmarketingsystems.net

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www.searchmarketingsystems.net

john64

posts: 3

Aug 06, 2008 9:18 AM ET Quote Report Abuse

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Attila,

It depends on what your preference is. If they are your friends you really can count on, both of you can just reach a simple agreement. You pay some money down or you can let them do the job first, whatever both of you agree.

If your project is big, it involves quite a bit money. You probably let them register a company and sign a contract. Good luck.

Richard

WebBizIdeas

posts: 125

Aug 06, 2008 1:26 PM ET Quote Report Abuse

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Hi,

What you need to do is the following:

1. Hire the employees as Vendors...draw up a "Vendor Agreement" to cover you, your company, your customers privacy, your customers ideas, etc...

2. You will need to fill out a 1090 at the end of the year.

3. Tip: communication is key...don`t hire just off skill...only hire if you can code in the day and that person is able to pick up that same coding at night...otherwise you will find it is inefficient.

Jeff

Attila

posts: 16

Aug 06, 2008 9:55 PM ET Quote Report Abuse

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Thanks guys for the great replies. Special thanks to Jeff for the specific informations on it.
I will make sure to follow your advice.
Attila

doljia

posts: 1

Aug 21, 2012 9:12 AM ET Quote Report Abuse

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thanks for all the information guys

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http://dir.doltuku.com http://rumah.doltuku.com

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