I've seen this asked a few different ways (closest was here), but I am looking to find out from the business's perspective, how to report (if necessary) the amount paid to a foreign contractor.
My situation is as follows: I have a US LLC and am wanting to contract an agency in India that I have found via odesk.com. I know I'd have to file a 1099 for a US contractor working in the US, and I think the 1042(S) for a foreign contractor working in the US, but what if I have a foreign contractor working outside of the US? Would this fall in a box of the 1065? Should I file a 1099/1042(S)?
I'm sure there's a form for it; any help is greatly appreciated!