International Contractors and Global Payroll
Written by Girija Srinivasan
Curated by Rubric Financial
Last updated
1 / 5
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.
Related Resources
The Income Tax Provision Under ASC 740
An overview of the ASC 740 income tax provision, covering deferred tax assets and liabilities, valuation allowances, and why unprofitable startups still record a provision.
Tax & ComplianceISOs vs NSOs: Structuring Option Grants
How Incentive Stock Options and Non-Qualified Stock Options differ in tax treatment, eligibility, and when to use each type in your startup's equity compensation plan.
Tax & ComplianceSection 754 Election: Step-Up Basis for Partnerships (and Why S-Corps Can't)
The §754 election is the mechanism that lets partnerships and LLCs step up the inside basis of their assets when a partner dies, transfers their interest, or takes a distribution. S-corps have no equivalent, a real cost founders often discover too late.
About the author
Girija SrinivasanCAPartner, Cross-Border Tax & Corporate FP&A
Chartered Accountant with 15+ years in finance leadership, ERP, and cross-border compliance. Leads US-India cross-border tax and corporate FP&A at StartupCFO.
More articles by Girija →Related tools and reading
Cross-border tax
Form 5471 for a foreign subsidiary, FBAR and PFIC filings, coordinated with your accountant abroad.
Free toolR&D Tax Credit Estimator
Estimate your Section 41 / 174 research credit and payroll offset.
InsightAustin Startup Tax Deadlines 2027: Texas Franchise Tax Calendar
Texas has no personal or corporate income tax, but Austin startup taxes are not zero. Here is the 2027 calendar for founders: the May franchise tax report, the Public Information Report, sales tax on SaaS, the new refundable R&D credit, Travis County property renditions, and the federal and Delaware dates layered on top.
GlossaryR&D Tax Credit
Federal credit for qualified research expenses, usable against payroll tax by startups.
InsightBoston Startup Tax Deadlines 2027: Massachusetts Calendar
Boston startup taxes run mostly through the state: the Massachusetts corporate excise with its $456 minimum, sales tax on SaaS, PFML contributions, and the 4% millionaire surtax that hits founders at exit. Here is the full 2027 calendar for a Delaware C-corp in Massachusetts.
GlossaryMulti-state Apportionment
Formula for dividing a company's income across states for state income tax purposes, typically based on sales, payroll, and property.
Want a CPA to own this?
Deadlines tracked, estimates filed, and multi-state compliance handled across all 50 states, with expert sign-off.
No spam, ever. If the download doesn't start, email us.
Or talk it through: