If I need to just pay someone small amount, like less than $100 in bitcoins to their account, and we are in 2 separate countries and won't meet in person, is it possible to send them money like this without me having to connect my bank account? In other words, what would be the best approach for sending someone $100 in bitcoins to become 100% untraceable? I can use TOR for logging in purposes to a site obviously to cover that side of the equation.
Face to face in cash transactions will provide you the most anonymity. Furthermore, you can just use bitcoin mixing services so that people can't trace where the Bitcoin that you bought is going.
but i'm not sure it applies to me, because I'm going to have a buyer already. I know who I need to pay the $100 to, I just don't want to be on the records for paying this person, so if anyone can confirm that it will be super easy for us to go to
https://localbitcoins.com/ and just do the exchange without having to show ID that would be great.
When you are buying Bitcoin, it all really depends on the seller. Most sellers will want to see an id so that they know that the person they are trading with is who they are actually supposed to trade with. However there should not be any record of that since those trades are for meeting face-to-face. So the seller will know who you are, but no one else will (except maybe your name which might be in chat logs so that the seller knows what name to check for).
Alternatively, instead of buying Bitcoin, you can just get paid in Bitcoin and that way no one will need to know your identity to pay you.