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Start Hiring For FreeExpanding internationally can seem daunting for US companies. Yet the benefits of a global workforce are too great to ignore.
This guide will walk through every step of building an international team, from exploring regulations to sourcing top global talent.
You'll learn key strategies US employers need to hire abroad legally and efficiently. Discover how to establish infrastructure for smooth payroll, taxation, and data protection to empower distributed teams.
Hiring international contractors can provide significant benefits for US companies looking to expand their talent pool and operations globally. By building remote teams abroad, businesses can access specialized expertise, reduce labor costs, and support their growth into new markets. However, international hiring also comes with challenges around legal compliance, payroll, time zones, and cross-cultural communication.
Global workforces allow businesses to find qualified candidates beyond their local region. Accounting professionals in South America often have similar expertise to US staff, with extra value from cultural alignment and English fluency. Hiring abroad also enables major payroll savings, with international contractors costing 30-50% less than domestic employees. Expanding teams internationally is key for growth-focused companies looking to enter global markets.
While beneficial, hiring abroad has pitfalls around taxes, employment laws, time zones, and cultural gaps between teams. Businesses must navigate complex regulations to legally hire contractors internationally and distribute payments. Remote work across distant time zones can hamper collaboration and alignment. Additionally, differences in work styles and communication can challenge productivity.
The keys to success are finding an employer of record to handle compliance, determining roles and requirements, identifying qualified candidates abroad, clearly conveying company culture, and managing teams effectively. Businesses should research regions with skilled talent pools in accounting and finance before recruiting specialized professionals that suit their needs. With careful preparation, international hiring can give businesses a real competitive edge.
There are a few options for US companies looking to hire remote employees internationally:
Setting up a legal entity in the target market is the traditional approach global companies take for hiring remote employees in other countries and building a long-term, global presence. Establishing a foreign entity allows you to hire and pay local employees directly.
Some key steps in this process include:
While this option provides the most control, it also involves high upfront and ongoing costs for legal, accounting, HR services to establish and maintain the entity.
An Employer of Record (EOR) allows you to hire employees globally without having to set up your own legal entity abroad. The EOR co-employs the remote worker and manages compliance, payroll, benefits and more in the employee's location on your behalf.
Key benefits of using an EOR include:
Leading EORs like Vintti have teams familiar with local laws and regulations who can take care of all employer responsibilities in the foreign country. This simplifies the process of hiring internationally.
A Professional Employer Organization (PEO) plays a similar role to an EOR but also delivers more hands-on HR services. PEOs provide talent acquisition, training, performance management and other HR support in addition to employment infrastructure abroad.
PEOs are ideal for companies lacking internal HR bandwidth to manage a global remote workforce or those that want the PEO to handle employee relations, engagement initiatives and more across borders. They provide customized global workforce management solutions.
In summary, EORs and PEOs allow faster, more cost-effective overseas hiring than setting up your own foreign legal entity. Assessing your budget, growth plans and HR needs can help determine the best route.
Recruiting employees from other countries can seem daunting, but following these key steps will set your business up for success:
You have a few options when it comes to hiring international employees:
An EOR like Vintti specializes in hiring international accounting staff and handles all legal, tax and HR complexities for you. This is the easiest option.
Plan 3-6 months in advance before your ideal hire start date. Recruiting globally takes more time due to extra steps like securing work visas. Start early to avoid business delays.
Before recruiting overseas, examine your internal infrastructure to support international hires. For example, evaluate payroll processes, HR policies around remote work, and management training for overseeing virtual teams.
Some international hires require approval from the Department of Labor before securing a work visa. This process confirms no qualified American workers are available for the role.
Finally, begin the visa petition process through U.S. Citizenship and Immigration Services (USCIS). Common work visas include H-1B for specialty occupations and L-1 for international company transfers.
Following these key steps will empower your business to access top global talent and effectively manage a world-class remote workforce. Reach out to the experts at Vintti for hands-on guidance tailored to your global hiring needs.
Yes, it is possible for a US company to hire a US citizen who is living abroad, as long as certain legal and tax requirements are properly handled. Here are some key things to consider:
The key is working with experienced partners to handle legal, tax, payroll and compliance requirements. Global remote hiring provides access to great talent, but does require research and preparation to do it properly. With the right partners and infrastructure in place, there is no reason a US company can't successfully hire US citizens irrespective of where they reside.
Yes, it is possible for non-US citizens to work remotely abroad for an American company. However, it is important to ensure you are correctly classified as either an employee or contractor.
Here are some key things to consider:
By proactively addressing these factors upfront with the employer, non-US citizens can successfully work remotely for American companies while abroad. The key is open communication, understanding all requirements, and setting clear expectations. With the right preparation, international remote work can be mutually beneficial for both parties.
Hiring international employees can seem daunting given the complex legal and compliance considerations. However, with the right guidance, U.S. companies can successfully build global teams. Here's what you need to know:
When hiring internationally, it's crucial to understand employment regulations in your contractors' locations regarding:
Key tax and compliance obligations include:
Safeguard employee data through:
In summary, partnering with a global Employer of Record (EOR) simplifies international hiring by ensuring compliance through localized expertise. With an EOR, your company benefits from cost-effective, legal hiring abroad without establishing foreign legal entities.
Global payroll refers to managing payroll for employees located in different countries around the world. There are a few options companies can consider:
Key considerations when determining the best approach include costs, compliance needs, size of team, and whether you want a strategic partner to help enable global growth.
When hiring globally, it’s important to develop a compensation policy that attracts top talent worldwide. Here are some tips:
Creating globally consistent yet locally relevant pay and benefits enables you to build an engaged international team.
Paying international contractors can vary depending on their classification. Here are some best practices:
Be sure to gather proper documentation like W-8 forms for US tax purposes. Having a streamlined payment system eliminates hassles for the finance team when working with a global contractor pool.
Expanding into global markets can seem daunting, but with the right strategies, it can lead to significant growth opportunities. Here are some best practices for attracting, interviewing, hiring, and onboarding international talent:
When hiring remote employees internationally, clearly define each role by:
This structure allows for productive asynchronous work.
Cast a wide net when sourcing international candidates by:
This expands your talent pool.
Streamline international interviewing by:
This allows you to build a diverse team that boosts innovation.
Successfully onboard international hires by:
This integration enables international contractors to quickly ramp up.
With strategic planning, expanding globally can give businesses access to specialized talent that drives growth. Defining asynchronous roles, sourcing candidates broadly, streamlining diverse interviewing, and supporting onboarding are key.
Clear communication is essential for remote teams spanning different time zones and cultures. Here are some tips:
Managing a productive global team requires setting clear expectations and providing robust feedback:
Optimizing schedules and coordination for team members in different time zones demands flexibility:
An Employer of Record (EOR) and a Professional Employer Organization (PEO) both facilitate international hiring and payroll, but have some key differences:
The main advantage of an EOR is they enable fast and flexible global team building without the client needing to set up local entities. A PEO is better suited for larger existing teams.
An Employer of Record handles all the complex tasks involved with international hiring and payroll:
Benefits include reduced risk and easier expansion into new markets. The EOR solution simplifies hiring globally.
Partnering with a Global PEO can greatly simplify the process of building out an international remote workforce. Advantages include:
This allows the client company to focus on growth rather than administrative hurdles when hiring globally. The PEO becomes a strategic partner in cost-effectively managing a global workforce.
Hiring international talent can provide immense benefits, but requires careful planning and management to ensure legal compliance and cross-cultural success. Here are the key steps covered to build an effective global team:
Following these best practices allows businesses to access global talent, increase diversity, and reduce labor costs by up to 50%.
To get started with international hiring:
International hiring requires an investment of time and resources to build a strong foundation. But the long-term benefits for business growth, diversity, and innovation are immense. Take the first step by connecting with specialized partners who can provide tailored guidance and support.
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You can secure high-quality South American talent in just 20 days and for around $9,000 USD per year.
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