For the past two years I have a US based consulting LLC (in PA). The business is international and for the last year 90% out of the country. Actually I have a project in Chile and need the services of a Canadian based consultant. The Canadian based company is not registered in the US and does not have a EIN, TIN or SSN valid in the US. All services of the Canadian consultant are to be performed in Chile only. The only involvement of the US will be to send a PO and the payments out of the US based LLC.
What do I have to do, and which steps do I have to take to legally hire and pay the Canadian company? Is there a special difference in hiring a Canadian sole proprietor or a corporation? How do I report this transaction with the US IRS?
Thank you for any input.