Below, we explore the necessary steps to hire international contractors compliantly: Research and understand legal and tax implications. Find and vet potential foreign independent contractors. Create a detailed contract. Set up a secure payment method. Manage the relationship effectively. Ensure compliance with regulations.
Contractors must complete a Form W-9 if they're US citizens or residents and a Form W8-BEN if they're based entirely abroad. Both forms are available to download from the IRS website. From the moment the contract begins, you must store these documents for at least four years.
U.S. companies can hire non-U.S. citizens as independent contractors without a work visa, provided the contractor performs the work from outside the U.S.
In most cases, yes. In addition to obtaining a freelance visa that legally permits you to vie for freelance jobs in a country, you also need to register yourself with the local business office.
The answer is yes—US companies can hire internationally legally. However, in most cases, you cannot hire remote workers as direct employees unless you have a legal entity in the workers' country of residence. But there is another option: hiring them as independent contractors.
Yes, a non-U.S. citizen can be an independent contractor for a U.S. company. This is a key point in understanding how can a US company hire a foreign independent contractor.
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The IRS requires a flat 30% withholding on ALL types of payments to foreign national individuals UNLESS: The individual has a U.S. tax identification number (SSN or ITIN) and qualifies for a tax reduction under the tax treaty between the U.S. and their country of tax residency.
A foreigner can work in the USA by obtaining a work visa, such as the H-1B for skilled workers, L-1 for intra-company transfers, or O-1 for individuals with extraordinary abilities. You typically need a job offer from a US employer who will sponsor your visa.
IRS Form W-8BEN or IRS Form W-8BEN-E Foreign independent contractors must submit IRS Form W-8BEN (for individuals) or IRS Form W-8BEN-E (for entities) to the US company they work for. This form certifies the contractor's foreign status and can help reduce or eliminate withholding tax on payments.