Foreign company looking to hire contractors, freelancers, or independent contractors working in the USA? We know all your employment options—and we’ll help you choose the best one.
At Contractor Taxation, we partner with all the major umbrella companies and contractor management providers in the USA. Whether you need to hire one contractor in California or build a remote team across multiple states, we’re here to help. Knowledgeable, friendly, and responsive by phone or email.
Sound Familiar? Real Questions from Companies Like Yours
“I am a director for a UK-based company. I would like to engage a US citizen, resident in Virginia, USA to perform R&D work in the US on my company’s behalf for a period of between 6 and 18 months. I am interested in understanding the costs rather than paying the US citizen directly.”
“We are based in Northern Ireland but have an enquiry from a large existing customer to do a project for them in Chicago. This would involve us sending our goods for a locally based contractor to install on site. Could you help with employment of a contractor based in Chicago?”
“We are a Canadian company that currently has ~15 full time contractors based in the US. We are looking at options to potentially outsource the employment of these people, in order for them to have the benefits of employment.”
“We are a small Canadian company. We have one employee who has been working and living in the USA since the pandemic. We do not want to set up a foreign entity. What are our options?”
“We currently have a global sales team. Historically our US sales team have been contractors and self employed through their own LLC entities. I believe Californian law is different and won’t allow that. This is a single individual in California.”
“We are pharm company in China, and currently we have around 3 candidates in USA and need to be employed, but we do not have legal entity in USA, and now we are looking for employment service in USA, our candidates are medical resarch scientists whose salary range from 300,000USD to 500,000USD anually. It would be appreciated if you could provide a quotation with supplement helath insurance plan as well.”
“We are looking to employ a sales manager in USA but do not want establish him on our UK payroll. What details would you need to advise on cost of your providing a payroll service to do this in USA. We currently do not have a legal entity in the USA.”
“We are a company based in Ireland interested in employing a customer support representative based in the USA. We do not want to set-up a legal entity in the US. The individual we want to employ is US resident. Is this something you can help us with?”
“We have a potential new employee that will be located in the USA to support our growing USA client base. I want to know more about the management cost associated with hiring this person through your organisation.”
“Hi Team, We are an Australian based software company looking to employ a US citizen in the US. Just investigating the simplest options to get started and the cost of using this service. Thanks”
“Good Morning, we have hired a new employee in the US who has started with us in March. I am looking to outsource the US payroll so that the correct withholding tax can be taken. The employee is based in New York and would like to know if this is something you could cover and help support us with? Many thanks.”
“Hello, I’m gathering information for a potential employer that wants to hire me. They are based in the UK and I live in the US. The company want’s to bring me on full time but neither of us have navigated hiring an international employee before. Based on the information I’ve gathered, I think a 3rd party to handle the taxes and withholding may be the best way to go. Is this a service you offer? What are your rates? What do the rates look like if we were to bring on additional US based employees in the next year or two? Thank you for your time, Cheers,”
“Good Morning, we have recently launched our business in North America and are looking to hire employees on the ground so require assistance on taxes, benefits, legal and so on. I’d like to set up a call with one of your advisors to learn more. Would be great to get on a call tomorrow.”
“We’re looking to partner with a PEO organisation to help us hiring remotely with lower volumes to start off with. Can you send me some more info on hiring in the USA and Norway, and how much this would cost?”
“We have a company in Singapore, and we hire a local employee in USA (She is American, lives in USA). We need to pay the salary to her. Please can we have your services for this I can give you more detail, please contact me as above email. Thanks”
“We are a scaling technology company entering the USA market. We require PEO Services, starting with one employee who we already have in mind, and planning to expand to around 20 within the next 2-3 years. We want good health / medical plans, flexible depending on the requirements of the staff member, and pension options, ideally ROTH not just 401k.”
These are real enquiries from foreign companies hiring in the USA. We helped them find compliant, cost-effective solutions—and we can help you too.
What We Do: USA Contractor Management Solutions
Hiring contractors in the USA as a foreign company comes with complexities: multi-state tax compliance, contractor classification rules, payment methods, and employment law. We simplify the process.
✓ Umbrella Company Solutions
Don’t want to set up a US entity? Use an umbrella company. They employ your contractor on your behalf, handling payroll, tax withholding, and compliance while your contractor works exclusively for you. We partner with all the major US umbrella companies and will help you choose the right one.
✓ Contractor vs. Employee Classification Guidance
Not sure whether your US worker should be an independent contractor or employee? We’ll assess your working arrangement and advise on the most compliant structure. Misclassification can be costly.
✓ Multi-State Contractor Compliance
Hiring contractors across multiple US states? Each state has different tax and employment rules. We ensure your contractors are properly classified and compliant no matter where they’re located.
✓ Converting Independent Contractors to Employees
Ready to bring your US contractors on as permanent employees? We guide you through the transition: payroll setup, benefits administration, and tax withholding—all without setting up a US entity.
✓ Payment and Tax Withholding Setup
Paying contractors in the USA involves navigating federal and state tax withholding, 1099 reporting, and cross-border payment regulations. We’ll help you structure compliant payment arrangements.
✓ Managing Remote Workers and Freelancers
Have remote workers or freelancers working from different US states? We help you navigate the complexity of multi-state employment and ensure compliance.
Why Foreign Companies Choose USA Contractors
- Access to Top Talent: The USA has deep talent pools across tech, sales, marketing, R&D, and consulting.
- Time Zone Coverage: US-based contractors can provide better coverage for North American customers.
- English Proficiency: Native English speakers make communication seamless.
- Market Entry: Hiring in the USA helps you establish a presence without the cost of opening an entity.
- Flexible Workforce: Independent contractors give you flexibility to scale up or down quickly.
Why Choose Contractor Taxation?
🤝 We Know All Your Options
We partner with all the major umbrella companies and contractor management providers in the USA. Instead of spending weeks researching, we’ll present the best 2-3 options for your specific needs.
📞 Friendly, Responsive Support
We’re here to help by phone or email. You’ll work with knowledgeable, approachable experts who understand both US employment law and the challenges foreign companies face.
💡 Expert Guidance on US Employment Law
We understand IRS contractor classification rules, state-by-state employment requirements, and multi-state tax obligations. We’ll help you get it right from day one.
💰 Cost-Effective Solutions
Because we work with multiple umbrella companies, we can help you find competitive pricing. We’ll compare costs transparently so you choose what fits your budget.
⚖️ Compliance Peace of Mind
US employment and tax law is complex—especially for foreign companies. We ensure you’re set up compliantly, reducing your risk of IRS penalties or legal issues.
Common Scenarios We Help With
UK Companies Hiring US Contractors
“I’m a director for a UK-based company. I would like to engage a US citizen in Virginia to perform R&D work.”
We Help: Connect you with US umbrella companies so you can hire the contractor without setting up a US corporation. The umbrella handles all US tax compliance and payroll.
Canadian Companies with Contractors in Multiple US States
“We are a Canadian company with ~15 full time contractors based in the US. We’re looking at options to outsource their employment.”
We Help: Reviewed the pro and cons of a full employment solution, Contractor of Record and Contractor Management Solutions through Umbrella Companies. Aggregate all the contractors into one USA based Umbrella Company to streamline payroll and compliance. Crucially for the client this solution can scale to handle employees across all 50 states.
Single Contractor in California or Other States
“Our US sales team have been contractors through their own LLCs. I believe Californian law is different. This is a single individual in California.”
We Help: California has strict contractor classification laws (AB5). We’ll assess your arrangement and recommend compliant structures—often an umbrella company is the best solution.
Irish/Northern Irish Companies with US Projects
“We’re based in Northern Ireland and need a locally based contractor to install on site in Chicago.”
We Help: Quickly set up compliant employment for project-based contractors in any US city through our umbrella company partnerships.
Converting Self-Employed Contractors to Employees
“We have one employee who has been working in the USA since the pandemic. We don’t want to set up a foreign entity.”
We Help: Transition your contractor to employee status through an umbrella company, giving them W-2 employment without you needing a US entity.
How It Works: Simple, Straightforward Process
Step 1: Free Consultation
Contact us by phone or email. Tell us about your hiring needs: How many contractors? Which states? What roles? We’ll discuss your options—no obligation.
Step 2: We Present Your Options
Based on your needs, we’ll recommend 2-3 employment solutions (umbrella companies or contractor management providers) with transparent cost comparisons.
Step 3: We Help You Choose
We’ll explain the pros and cons of each option in plain English. You’ll understand exactly what you’re getting, what it costs, and what the compliance implications are.
Step 4: We Facilitate Setup
Once you’ve chosen your solution, we’ll introduce you to the provider and help coordinate the setup. We’re here to answer questions throughout the process.
Step 5: Ongoing Support
Even after your contractors are onboarded, we’re available if you have questions, need to scale up, or want to adjust your arrangement.
Frequently Asked Questions
Do I need to set up a US entity to hire contractors in the USA?
No. Using an umbrella company allows you to hire contractors or employees in the USA without creating a US corporation or LLC. The umbrella becomes the legal employer while your worker works exclusively for you.
What’s the difference between a 1099 independent contractor and a W-2 employee?
1099 contractors are self-employed and handle their own taxes. W-2 employees have taxes withheld by the employer. The IRS looks at control, financial relationship, and type of work to determine proper classification. Misclassification can result in penalties.
How much do umbrella companies charge in the USA?
Umbrella company charges can vary dependent on the level of service, salary and market sector. Some providers charge a set monthly fee whilst others charge a percentage of salary. We’ll get you transparent quotes from multiple providers so you can compare. The cost is significantly cheaper than full employment solutions.
What about California’s AB5 law? Can I hire contractors there?
California’s AB5 law makes it very difficult to classify workers as independent contractors. Most relationships will require W-2 employment. An umbrella company is often the best solution—they provide W-2 employment without you needing a California entity.
Can I hire contractors in multiple US states?
Yes. Umbrella companies can employ contractors across all 50 states. You get a single point of contact for payroll and compliance even if your contractors are spread across California, Texas, New York, and elsewhere.
What if I want to convert my independent contractors to employees?
This is a common transition. As and when you might choose to convert any contractors to employee, we’ll help you move from 1099 independent contractor status to W-2 employment ensuring proper payroll setup, benefits administration, employment compliance and tax withholding.
How do I pay contractors if I’m a foreign company?
If you use an umbrella company, they handle all payments, tax withholding, and reporting. You pay the umbrella company a single invoice, and they manage paying your contractor. You can pay in USD or any major currency but most clients choose to pay the vendor in the same currency that they pay the employee (USD) which simplifies cross-border payments significantly.
What about remote workers working from home in the USA?
Remote workers can be hired the same way. The umbrella company handles employment regardless of whether your worker is in an office or working remotely from home anywhere in the USA.
Ready to Hire Contractors in the USA?
Get a free consultation today. We’re friendly, knowledgeable, and here to help.
📞 Call us or 📧 enquire at contractortaxation.com/contact
We work with all the major umbrella companies and contractor management providers in the USA. Let us help you find the right employment solution for your US contractors—quickly, easily, and compliantly.
Contractor Taxation – Your friendly, knowledgeable partner for hiring contractors in the USA. We know all your options, and we’re here to help you choose the best one.
If you have questions about how an umbrella company can help while contracting in the United States, please contact us at Contractor Taxation.
