Forums: Discussions for entrepreneurs and small business.

Hello all!

I'm looking to hire a full time employee from another country.  I can't for the life of me come up with documentation as to the rules and regulations for this as far as taxes and other things go.  This person would be working from their home in the other country not coming here.  I just need to get pointed in the right direction to figure out what I need to be aware of as a business owner, such as my responsibilities tax wise and anything else.  Any information you can provide me regarding this issue would be much appreciated!

Thank you for your time!

 

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Hi there,

For the purposes of your US company, there really wouldn't be any "employee" in the typical sense regarding a foreign individual (no US contacts whatsoever). The relationship would be contractual. There are variety of international contractual schemes you could choose from to determine the nature of the relationship. For example, they could be an agent, franchisee, distributor, etc. This would determine how the relationship would be treated under US and foreign law, where liabilities falls for financial or civil damages, and other factors. The country of the foreign resident also makes a great deal of difference as to what rights they give their own citizen in such a relationship and what rights the foreign employer might have (many countries are either lax or overprotective when it comes to right to termination, non-compete clauses, etc.). There are also other issues that would come into play, such as your tax liability for profits made overseas, how any disputes might be resolved, your oversight ability, and much more.

Bottom line: It's a complicated proposition based on a contractual relationship. You should consult with an attorney experienced in international business prior to making any final decision, and when drafting the contract. 

If you would like to discuss your matter further over a free and confidential phone consult, please contact me at your convenience.

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PA and NJ Business Attorneys

Hello mduffy!

Have you tried looking for one on job hosting sites like Elance, Staff.com or oDesk ? There are sites that offers free-trial service so why not try and make the best of it. Take the time to do some in-depth research, then you identify exactly the kind of staff your business needs.

Good luck.

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