What is an Employer of Record (EOR) and when should a foreign-owned LLC use one?
I'm a non-resident alien who owns a U.S. LLC but I don't want to deal with registering as an employer, running payroll, or dealing with state taxes. Someone suggested using an EOR (Employer of Record). How is this different from a PEO? With an EOR, who is the actual employer of the worker? Can I still manage the worker's day-to-day activities? Is this common for foreign-owned LLCs?
Related Questions
Should my foreign-owned LLC use a PEO for payroll and HR — what are the pros and cons?
As a foreign owner of a U.S. LLC, I find U.S. payroll incredibly confusing. Someone recommended a PEO (Professional Employer Organization) that would handle everything — payroll, benefits, HR complian...
Can a foreign employer really owe U.S. Social Security and Medicare withholding for work performed in the States?
I always thought Social Security and Medicare withholding was mostly a domestic-employer issue, so I was surprised to read that a foreign employer can still have U.S. payroll obligations when services...
My nonresident employee says a treaty exempts some wages and wants to give us Form 8233. How should we think about that file?
We are a small foreign-owned LLC and one new U.S.-based hire says she is a nonresident alien and may be treaty-exempt on part of her compensation. She mentioned Form 8233, which I had never dealt with...
Everyone keeps mentioning totalization agreements when payroll crosses borders. What file should we actually maintain if we think one applies?
Our founder is from Germany and now works partly in the United States for the company. Several advisers have mentioned a possible totalization agreement angle for Social Security coverage, but so far ...
My payroll provider says nonresident alien employees have special W-4 and withholding treatment. What should I verify before first payroll?
We are hiring our first employee in the United States and she will be a nonresident alien for tax purposes. My payroll provider says the setup is not identical to a normal domestic payroll profile and...
I'm a foreign LLC owner hiring my first U.S. employee — what payroll taxes do I owe?
I own a single-member LLC registered in Delaware as a non-resident alien living in the UK. I just hired a full-time employee in Texas to handle customer support. This is my first hire and I have no id...
Can my foreign-owned LLC file Form 944 instead of quarterly Form 941?
I have a tiny foreign-owned LLC with one part-time employee whose total annual wages are about $8,000. Filing Form 941 every quarter seems like a lot of paperwork for such a small amount. I heard ther...
If a founder ends up working in the U.S. on H-1B status, does FICA usually apply from day one?
I know the company will need immigration counsel separately, but on the tax side I am trying to understand the payroll basics before compensation starts. I have read that some categories of foreign pr...
I am an O-1 creator on U.S. payroll. Should I assume FICA applies from day one unless totalization says otherwise?
My tax team keeps circling around treaty questions, but payroll still feels unclear. I am on O-1 status, getting wages through a U.S. company, and I do not want the wage file built on the wrong intuit...
If a payroll provider files my LLC's W-2s late or wrong, is the LLC off the hook?
I run a foreign-owned LLC from Nigeria with three US employees, and we pay a well-known payroll service to handle literally everything — deposits, the quarterly returns, and the year-end W-2s. My assu...
Have a similar question?
ForeignLLCTax members get expert answers with IRS citations. One CPA consultation costs $200+. Full access is $9.99/month.
Become a Member — $9.99/moDisclaimer: All content on ForeignLLCTax.com is created by a tax professional and is provided for general educational and informational purposes only. It does not constitute tax, legal, or accounting advice, and should not be relied upon as such. Every tax situation is different — for advice specific to your circumstances, please consult a licensed CPA, Enrolled Agent, or tax attorney. By using this website, purchasing a subscription, or accessing any tools or services, you acknowledge that no client-professional relationship is established between you and ForeignLLCTax.com or its operators. This website is not affiliated with the IRS.
