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Remote hiringAug 11, 2026·6 min read
Contractor or employee? Structuring your first international hire
Most small businesses start with contractors. Here's what that means practically, and when to switch.
This is general guidance, not legal advice — confirm specifics with an accountant or employment lawyer in the country you are hiring from.
The common starting point
A US business hires an international professional as an independent contractor who invoices monthly. It is fast, widely understood in LATAM and Eastern Europe, and requires no local entity.
What your agreement must cover
- Scope of work and deliverables
- Payment amount, currency, schedule, and method
- IP assignment to your company
- Confidentiality and data handling
- Notice period on both sides
When to move to employment
If the person works your fixed hours, uses your systems exclusively, and is directed day to day, several countries will treat that as employment regardless of the contract. An employer-of-record service is the usual bridge once someone is clearly full-time and long-term.