I now have TWO NGOs!-So do my employees work for me or "me" (I'm lost agin.)

Diana

Ok, when last I visited this forum I was "simply" looking for clear (ha!) advice, of a un-official but insider nature, on how I might pay the folks I hired, while in India, who live in India, are Indian, and are excellent employees in the preschool I opened and run, from America, without breaking any laws, while paying all due taxes, and all that jazz.

Silly me.

Now it's about a month (?) later and here's where we are based on the best cheap legal advice we can find and even some of the pricey stuff:

I am/have a U.S. non-profit corp that is in the process of applying for (at a tune of $500 and 40 pages of documentation) my /our 501c3 federal Tax-exempt status...thus making us (let me call us "Roo"") a legal, federal, U.S. NGO able to accept donations from Americans who want to donate for tax deductible reasons in addition to charitible ones, etc.

AND

I but really "I" (in quotes) also have an Indian NGO that has been formed and is being registered as a Charitible TRUST in Kerala. We'll call that NGO - "Kanga."

The approval for Kanga as a trust should be complete in about a week. Then we (or "we" - I cannot officially be a part of my own preschool in India as I'm not Indian...so I'm an "honorarly patron" only and don't even have voting rights..meaning my staff - who are on the board of trustess, being Indian, can vote me out of business but I can't vote them out of a job even though "I" - but really the US I, pay the wages. Unofficially.)

And that is the point of this query: Are my employees in India employees of the Indian NGO or the US Non-profit Corp?

And, in a broader quest, is this anywhere near the way it is supposed to be?

Many many thanks for any suggestions, help, advice, whatsoever.

__________________
“I slept and dreamt that life was joy. I awoke and saw that life was service. I acted and behold, service was joy.” - Rabindranath Tagore

crvlvr

all you will be doing, in the current scenario, is donating your money to the trust. then the BOD decide what to do with your money. They can even decide to start giving themselves raises. Just make sure you keeo them on a tight leash. To answer yor question, they are not "your" employees

Diana

Thanks. That is rather what I was hoping. It's a shame as they are excellent employees. I hope the other "me" will know what I good deal she..er I have.

So just the Trust in India deals with tax withholdings. Excellent. I think.

wonderwomanusa

Although my experience is with US tax law, I believe the employees in India are employed by the Indian NGO, not the American foundation, though that may employ YOU.