...handle being a contractor?

[silverwhisper]

somewhat out of the blue, a friend i've known on another forum (strictly OL interactions) for literally years invited me to work on the dialogue for a game. i'm a US citizen and resident. i believe the employment relationship will be as a contractor. the employer is located in canada. they're small and this is their first product.

i guess my question is: what is the best way for me to be reimbursed by them, WRT tax implications and the like? i know that i'd probably prefer a cut of the profits rather than a lump sum but am fuzzy on what that means.

any thoughts, folks?

ed

 

[Guest]

 

[silverwhisper]

good point re: currency. i'm checking on that.

do i want to be a natural person or some form of corporation? not worth it if i'm doing this more or less on a lark?

ed

 

[EJFan]

scalywag makes some good points.

i think you have to consider their reputation in the gaming industry. if this is their first time out of the gate and you're only doing dialogue (thus not entirely within the creative process) then a cut of the profits may not be very fruitful. not to mention that when you get that sort of reimbursement there are so many ways to cook the numbers (and the contract) to leave you with no money at all. unless you know them well and trust their work i'd recommend just getting a lump sum.

as far as taxes go, just look at irs.gov and they should cover that information somewhere. and god knows that if there's a special form you'll need, they'll sure as shittin' have it.

of course, if at all possible, be sure a lawyer looks over your contract... or at least someone who closely resembles a lawyer. granted, it's only canada (hell, they even let bi in to that place) but i'm sure the commerce laws and shit are at least a little different than they are here.

 

[EJFan]

do i want to be a natural person or some form of corporation?

i don't think filing for incorporation will be worth it to you. you're probably better off just acting as a sub-contrator and that's it. if you incorporate, there's a lot of paperwork and filing fees you'll have to pay. i don't know what they're offering you but i'm sure it won't be worth the cost and effort.

also, remember that incorporating just creates a separate legal entity. the only benefit here is that if there's a suit of some kind then your personal assets are left out of the loop. there's potential for you being sued (like if you used a catch phrase that belonged to some other celebrity or something) but if you sign over the rights to your work to the game's creator then it'd be their problem to contend with.

again, have a lawyer check over your contract. but i wouldn't advise incorporating for just this one venture.

 

[midwestyankee]

Listen to EJ. What he has posted so far is right on the money.

If, at some point in the future, you find yourself wanting to do this kind of side venture more often then it will be time to look into organizing your side venture into a business. Even then, it's not unusual to remain a sole proprietor and unincorporated for a lifetime of work.

And as for finding someone who resembles a lawyer to look over your contract, make sure that the model is a good-looking lawyer.

 

[caldwdp]

Canada Tax

Watch out for the Canadian income tax. Make sure that your employer will pay that for you.You will still need to pay US taxes on the income.
The IRS will help the Canadian goverment collect from you if you don't pay there tax. Also you will need some kind of permission from the Canadia goverment to work in Canada. (Even though you are not actually working in the country, they still think that since you are doing work that will be used in Canada you are working there.
Working outside the US canbe very tricky.It is best to look into all the angles before you take the job

 

[wicked woman]

Watch out for the Canadian income tax. Make sure that your employer will pay that for you.You will still need to pay US taxes on the income.
The IRS will help the Canadian goverment collect from you if you don't pay there tax. Also you will need some kind of permission from the Canadia goverment to work in Canada. (Even though you are not actually working in the country, they still think that since you are doing work that will be used in Canada you are working there.
Working outside the US canbe very tricky.It is best to look into all the angles before you take the job

Yup...in addition to your lawyer get a CPA with Canadian/US tax knowledge/experience. It will be a simple question for them...hazardous for you without it. FYI there is a tax treaty agreement between Canada/US that will come into play.

 

[silverwhisper]

many thanks, folks!

ed