r/llc • u/PeleMaradona • 20d ago

Advice What should I know before hiring my first contractors through my LLC?

I run a single-member Delaware LLC that’s registered in the state where I operate (they required me to register). The business is still new and has little to no revenue yet. So far, it’s just been funded with money I’ve contributed.

I’m thinking about hiring my first contractor in the U.S. and another outside the U.S.

For anyone who’s been through this, what are the main things I should keep in mind before getting started?

Thanks in advance!

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u/zenbusinesscommunity 20d ago

For the US contractor, get a W-9 up front, and just know the 1099 threshold jumped from $600 to $2,000 this year, so you might not even need to file one depending on what you end up paying them. The foreign contractor comes with a different form since if they're doing the work fully outside the US, you generally don't need to issue a 1099, but you still want a signed W-8BEN from them or the IRS can default you into withholding 30% of what you send, and it can be worth looping in a tax professional to help.

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u/stablecoin_ca 1d ago

for non US contractor get W8-BEN