--- title: "Hiring people in the US and beyond" id: "424746" type: "post" slug: "hiring-people-in-the-us-and-beyond" published_at: "2025-09-09T11:38:14+00:00" modified_at: "2025-09-09T13:38:14+00:00" url: "https://seedlegals.com/resources/hiring-people-in-the-us-and-beyond/" markdown_url: "https://seedlegals.com/resources/hiring-people-in-the-us-and-beyond.md" excerpt: "Sam Ross, Chief Legal Officer at Remote, gives the golden rules for a tax-trap-free expansion to the US in this conversation with SeedLegals CEO Anthony Rose." taxonomy_category: - "Video Zone" --- 3 min read Expert reviewed This article has been fact-checked by a SeedLegals subject matter expert. [Meet our experts](https://seedlegals.com/authors-and-experts/) and learn more about our review process and quality assurance in our [editorial policy](https://seedlegals.com/editorial-policy/) . # Hiring people in the US and beyond Published: Sep 9, 2025 Contents [Key takeaways](#key-takeaways) [Co-Founder & CEO Anthony Rose Co-Founder and CEO](https://seedlegals.com/resources/author/anthony/) [Erin Deasy Junior Content Executive](https://seedlegals.com/resources/author/erin-deasy/) Tax traps and legal twists can be unsettling when you’re expanding your startup across the pond. The US may be the land of opportunity, but it’s also a patchwork of 50 states – each with its own complex rules for hiring and managing teams, which can be stressful to navigate. Join [Sam Ross](https://www.linkedin.com/in/sam-ross-29ab0311/?originalSubdomain=uk) , Chief Legal Officer at [Remote](https://www.linkedin.com/company/remote.com/) , as he chats to SeedLegals CEO [Anthony Rose](https://seedlegals.com/resources/author/anthony/?nr=1) about the essentials of engaging contractors and understanding when it’s time to set up a US entity. Get the insights that every founder needs before scaling internationally as you learn how to hire compliantly, manage share options across borders, and decide if – and when – the Delaware Flip is right for your business ## **Key takeaways** ### **Hiring in the US: rules and risks** - The US isn’t one country legally – it’s 50 states, each with different employment laws and requirements. - Unlike the UK, employment in the US is typically ‘at will’, which means people can be let go on very short notice. - Contractors are fine for project-based work but hiring someone as an employee in the US without the right setup can create tax liabilities for your UK company. - Misclassification is a serious risk: if a contractor later claims they were really an employee, you could face back pay, penalties and litigation. ### **Contractor, EOR, or PEO? Choosing the right path** - Contractors work well when the person runs their own business and delivers project-based work (simple and low-cost). - An Employer of Record (EOR) allows you to give someone full employee status and benefits, without setting up a local entity. Remote becomes the legal employer on your behalf. - A Professional Employer Organisation (PEO) is a US-only option that co-employs staff with your US entity, handling payroll, benefits and compliance. Many startups use this until they hit ~100 employees. - Payroll-only services exist too, but require more internal HR and legal know-how. ### Perfect your pitch Use our free ultimate pitch deck template: includes step-by-step guidance & tips from investors [Get the free template](https://seedlegals.com/resources/pitch-deck-template-uk-startups/) ### **Employment law differences across Europe** - Probation periods are a crucial tool – when used effectively, they provide flexibility and honest feedback loops for both sides. - Some countries, like the Netherlands, even require going to court to terminate an employee, which can surprise UK and US founders. - Employment protections vary widely: in the UK, complexity ramps up after two years; in Europe, tenure usually means higher costs. - The golden rule: communicate transparently, regardless of jurisdiction. ### **Share options and international staff** - Granting options to contractors doesn’t automatically change their status – but always clarify their classification upfront. - In the US, you must get a 409A valuation before issuing options, or employees risk harsh tax penalties. - EMI remains the gold standard for UK staff; but if you use an EOR, you may lose eligibility for tax-advantaged schemes like EMI. - In other countries, exercising options can trigger company tax liabilities, so founders should get advice before granting widely. ### **When and why to set up a US entity (or flip to Delaware)** - Reasons to create a US entity include entering contracts with US customers, hiring local staff and limiting liability. - A Delaware Flip makes your company a US parent with a UK subsidiary, which US investors often prefer because it simplifies tax, legal, and QSBS (Qualified Small Business Stock) benefits. - Done right, existing SEIS/EIS investors can keep their benefits even after a flip, and UK investors can continue backing the new US parent. - Incorporation is relatively cheap in Delaware, but setting up bank accounts and securing EINs can take time – so plan ahead. ##### SeedLegals events ### Connect with fascinating founders Sign up to our newsletter and get the best of SeedLegals events delivered directly to your inbox. By subscribing, you agree to receive information from SeedLegals. You can unsubscribe anytime. View our [privacy policy](/privacy-policy/) Related articles [– How to expand to the US, raise from US investors and do the Delaware Flip](https://seedlegals.com/resources/daniel-glazer-on-usa-expansion/) [– Nailing taxes, IP and payroll before a Delaware Flip](https://seedlegals.com/resources/nailing-taxes-ip-and-payroll-before-a-delaware-flip/) [– Should you do the Delaware flip?](https://seedlegals.com/resources/should-you-do-a-delaware-flip/) ## Related posts [2 min read What’s hot? The planet with or without Habla’s eco-friendly kilns? Peter Habla, founder of Habla Kilns, replaces traditional kilns with a fresh, sustainable alternative – the Zig Zag Kiln... 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