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Tax & Compliance

International Contractors and Global Payroll

Collated by Harry Prabandham

Curated by Rubric Financial

Last updated

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Three Ways to Engage Global Talent

  • You can hire someone as an independent contractor, through an employer of record, or as an employee of your own foreign entity.
  • Contractors are fastest to start but carry misclassification risk if the person works like a full-time employee under local law.
  • An employer of record legally employs the worker on your behalf in their country, handling local payroll, benefits, and compliance.
  • Opening your own entity makes sense once headcount in a country is high enough to justify the setup cost and ongoing filings.

About the author

Harry Prabandham

Founder & CEO

Founder and CEO of StartupCFO. MBA from Wharton, MS in Computer Science, and decades of experience building and advising venture-backed startups.

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