@Rudolf Schmidt yes, you are right

@Rudolf Schmidt: by the way, here are some insightful videos from James Baker on this topic:

@P S : there are 2 options of what you can do: 1) Bill them as a Disbursement or Reimbursement: Disbursement/Reimbursement structure means you bill only for the actual expenses incurred — no markup, no profit. You should attach receipts and clearly indicate that this is a pass-through expense. Use language like: "Reimbursement for out-of-pocket expenses incurred on behalf of [Client's Name], per agreement". This be classified in your books as a contra expense or liability offset, not as revenue, thus avoiding income tax on the reimbursed amount. 2) Bill them as Revenue but Offset by Expense (If simpler). If you don't set up a pass-through structure, the reimbursement will be taxable income (revenue).In that case, the expense you incurred should also be on your books as an expense, so you get an expense deduction to offset the taxable income (though timing differences can arise). This could be simpler to administer, but you have to report both the income and the expense, and your margins/profitability metrics may be distorted. Also, timing mismatches could result in temporary tax liabilities. Good luck!

@Brandon Smith: An EIN letter from the IRS (Form SS-4 Notice CP 575) does contain a business address, but: - The address is simply what was provided when applying for the EIN. - The IRS does not verify or validate the physical presence of the business at that address. - This address can easily be changed by filing a form (Form 8822-B), so it's not considered a strong or verifiable proof of physical presence. Banks and payment processors often require proof that shows you are actively operating from a location, not just that you submitted an address on a form.

@P S: you should probably start here: https://www.skool.com/global-business-growth-club-7119/irs-1120-and-5472-for-an-llc-founded-in-27-12-2024

@Vlad Million: I applied at the end of December 2023 and got approved in early January 2024, when the rules were more lenient than they are now. As I recall, the online application process was lengthy, but still manageable. However, they later sent me a long questionnaire by email, where I had to describe my business case in detail, including past history and future projections, and attach a large number of supporting documents. It was really exhausting... It was not about having or not having a website or about having or not having an ITIN. If you travel to the U.S. and open a brick-and-mortar business bank account, they don’t ask for more than what’s required in the standard questionnaires.

@Vlad Million: In my case, I switched from being a permanent employee to a freelance consultant, but I remained with the same U.S. employer. I provided Relay with all the supporting documents related to my situation, so my past history and future projections were well covered. I did not submit an ITIN, as I simply do not have one. Regarding the timeline: I applied in the last week of December 2023, which means the application fell under the 2023 compliance rules. > your home address with your local (non-U.S.) bank statement Yes, I used it as proof of address.