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Can hiring a contractor abroad create problems in their country?

Banking, payments & cross-border

Yes. Beyond reclassification risk, a contractor who negotiates or concludes contracts on your behalf can create a permanent establishment, which brings local corporate tax filings.

The exposure sits with your company rather than the contractor. Scope what they do, not just how they are paid.

We handle this for founders running US companies.

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Check your EIN confirmation letter (CP 575) first. If that is gone, look at a previously filed tax return, a business bank account application, or any 1099 you have issued. Your bank or your payroll provider will also have it on file.

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