How to Hire US Employees without a US Entity

Explain the desire for many foreign companies to enter the us market and their challenges due to not having a US entity. (common situations – wanting to hire a US Sales person to sell in the US). Explain things they should think about like tax implications, foreign laws (US laws), and other challenges. The answer is to use an EOR, and explain the benefits of that. 

If you’re considering hiring U.S. employees but lack an American presence, you may believe your only option is to set up a subsidiary company. This requires incorporating the entity and setting up a Federal Tax ID Number. These are time-consuming steps that are regulatory-laden and potentially costly. Then there are issues of hiring employees. Are you prepared to take on all of the regulatory rules for state and federal employment? We have a better answer. Why not consider an Employer of Record (EOR)—like FoxHire. 

Easiest Way to Hire U.S. Workers without a U.S. Subsidiary 

If you’re an overseas business seeking to set up shop in the U.S. you are probably full of questions: 

  • What are the rules for hiring U.S. workers? 
  • What benefits do U.S. workers receive? 
  • Can I fire a U.S. employee without notice? 
  • How do I handle payroll in the U.S.? 
  • How much will healthcare cost me for my U.S. workers? 
  • How is U.S. employment law different from my country? 
  • How much should I pay? 
  • How can I attract talent? 

These are probably just a few of the questions you have. There are pros and cons with setting up shop in a foreign country like the U.S. For example, if you are seeking to increase sales in the U.S., having an American handle selling to U.S. companies makes sense in many ways. But one challenge is your need to comply with local employment laws. The steps necessary to set up a full company in a foreign land is time-consuming and costly. 

If your primary goal is to hire a U.S. workforce, there are faster and easier alternatives. There are generally three ways to do this: 

  1. You can establish a partnership with one of your suppliers or another type of joint venture arrangement. That way your U.S. partner will have knowledge of compliance requirements. But this sets you up for a conflict of interest between the U.S. company and your business. Where will the employee’s loyalties lie? 
  1. You can independently contract with workers. As 1099 employees they handle their own taxes, benefits, and various paperwork requirements. There is no employer-employee relationship and this is both a benefit and a drawback. Freelancers come and go so you lack some of the control you could have with a “real” employee. 
  1. Outsource employment and all of the reporting and management to an EOR like FoxHire. We can source, hire, train, and onboard your employees. We take care of recruiting and all of the payroll requirements as well as hiring and firing. This is a highly effective system for any company seeking to establish a firm foothold in the U.S. market. FoxHire handles the risk associated with employment. You even have the option of short-term contracting that allows you to dip your toe in the waters of U.S. commerce without committing fully. Thus, you have no investment in the time it would take to do business here in the United States. Instead, FoxHire becomes your de facto presence. 

Ready to make a move to the U.S. market?

Talk with FoxHire about how we can help you reach your expansion goals.