1
1 Comment

Pre-LLC how do you hire contractors?

I've heard the common wisdom that you should wait to file for an LLC before you're soon ready to ship to reduce cost/risk (in California, it can cost upward of $2k). However, if I wait, how do I hire contractors (particularly Internationally) without a business entity? Can I contract them as an individual... if so, what tax forms what I use? [e.g. w2, w4, etc].
Also is there an HR service that can handle this? I tried reaching out to Gusto, but they do not deal with International contractors, and they require one W2 employee which requires a legal business entity.

  1. 1

    I can't give too much information about California but in Australia we have a "sole trader" status for most people working by themselves, if you and the other contractor have this status then you can have a business relationship.

    If you're hiring contractors and not employees you should be able to work with them regardless. You don't handle taxes for your electrician so why would you your web designer?