Process to hire employee overseas for my LLC and how to inform IRS about Indian worker?

Thanks for the info, that's helpful. Quick question - for the W-8BEN form, does it expire at some point? And what if the person I hire works exclusively for me but from their home in India using their own computer? Would they still be considered a contractor?

The W-8BEN is generally valid for three years from the signature date, unless a change in circumstances makes any information on the form incorrect. If someone works exclusively for you, that's actually one factor that might point toward an employee relationship rather than a contractor arrangement. The IRS looks at multiple factors to determine worker classification, including behavioral control, financial control, and the type of relationship. Even if they use their own equipment and work from home, exclusivity can be a red flag. Consider creating a strong independent contractor agreement that clearly establishes their independence, have them invoice you for specific deliverables rather than paying hourly, and avoid micromanaging their daily work. Documentation is key in case your classification is ever questioned.

That sounds interesting. Does it actually help with the ongoing reporting requirements or just the initial setup? I'm concerned about making sure I stay compliant each quarter/year with whatever filing requirements there are.

I'm skeptical of services like this. Couldn't you just talk to a CPA who specializes in international taxation instead? What does an AI service know that a professional accountant doesn't?

It handles both the initial setup and ongoing compliance. The platform sends reminders about when certain forms need to be updated (like when that W-8BEN expires after 3 years), and it generates quarterly checklists of what you need to file based on your specific situation. It even tracks payment thresholds so you know when you've crossed reporting requirements. As for comparing to a CPA, I tried that route first and got quoted $2,500 for international business consulting. This service isn't meant to replace professional advice for complex situations, but for straightforward contractor relationships in common countries like India, it automates what would otherwise be expensive consulting hours. The platform actually references IRS publications and international tax treaties in its recommendations, which I found reassuring.

How does this actually work? I don't understand how another service can get you through to the IRS faster than calling directly. Seems like it wouldn't be allowed or something.

This sounds like BS honestly. The IRS barely answers their phones at all these days. You're telling me some random service got you through in 45 minutes when people wait on hold for HOURS? I'll believe it when I see it.

It works by using their technology to navigate the IRS phone system and wait in the queue for you. When they reach a representative, they connect the call to your phone. It's completely legitimate - they're just handling the wait time for you. They use a combination of artificial intelligence and actual people to constantly dial and navigate the complicated IRS phone tree, which means they can get through the system much more efficiently than an individual can. The service is particularly useful during tax season when wait times are longest. There's nothing deceptive happening - they're just specialized in dealing with the IRS phone system's inefficiencies.

What's an EOR service? Is that like a PEO? And do you have any recommendations for ones that work well with very small businesses? I'm only looking to hire one person to start.

An EOR (Employer of Record) is similar to a PEO but specifically designed for international hiring. They essentially become the legal employer in the foreign country while you maintain day-to-day management. For small businesses hiring just one or two people, services like Deel, Remote.com, or Ontop tend to be more cost-effective than traditional global PEOs which usually cater to larger companies. They handle everything from compliant contracts to local tax withholding and benefits requirements. The fees usually range from 5-8% of the employee's salary, which might seem high but is typically cheaper than setting up your own foreign entity. For just one employee in India, this approach could save you significant headaches with compliance.

The US-India tax treaty definitely applies here. Article 15 covers dependent personal services (employment), while Article 14 covers independent personal services (contractors). Generally, if your Indian worker never comes to the US to perform services, their income is only taxable in India. As for LLC vs S-Corp, it really depends on your overall business situation. An LLC with S-Corp election could give you some employment tax advantages if you're also taking a salary, but for purely hiring overseas workers, the structure is less important than properly documenting the relationship. What matters more is whether you classify them correctly as employees vs contractors, and whether you follow the reporting requirements for foreign persons.