All the more reason to be incorporated. They HAVE to do that in order to comply with US tax laws. Anyone that is a "sub-contractor" is required to fill out a W-9 and will get a 1099 at the end of the year.
I'm not sure what the laws are in the US for out-of-country salespeople, but did you ask them...and what did they say? There is probably a different form to fill out, maybe only on their end for that. It's not a big deal...what are you guys scared of? You make the money, you take the checks to the bank (or they get wired), so why not allow the company you do business with to comply with the law?
Personally, I want 1099's and W-9's. This is a legitimate enterprise and to try to fly under the radar makes it harder for the rest of us to defend ourselves as part of the business community.
My $.03 worth.
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