Remote Job Categories. . By Luis

How to Work Remotely for US Companies (From Abroad)

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The rise of remote work has made it possible for professionals around the world to collaborate with US tech companies without relocating. If you live outside the United States and want to work for a US-based company, there are several employment models you’ll likely encounter. Each one has its own legal, financial, and lifestyle implications.

1. Direct Employment Through a Local Subsidiary

Some US companies set up subsidiaries or branches in countries where they have significant hiring needs. In this case, you’re hired as a regular employee under local labor laws.

  • Pros: Standard employment contract, local benefits (healthcare, pension, paid leave), and tax withholding handled by the employer.

  • Cons: Only an option if the company has a legal presence in your country, which is less common for smaller startups.

2. Employment Through an Employer of Record (EOR)

When a company wants to hire abroad but doesn’t have a local entity, it can work with an Employer of Record such as Deel, Remote, Papaya, or Oyster. The EOR acts as the legal employer in your country, while you work day-to-day for the US company.

  • Pros: You get the stability of an employment contract, local benefits, and compliance with labor laws. Onboarding is usually fast.

  • Cons: Benefits may be more limited than if you worked directly for a local branch. Some countries may not recognize seniority or perks from EOR-based employment.

3. Independent Contractor (Freelancer)

Another common setup is working as an independent contractor (self-employed/freelancer). You sign a contract with the US company, invoice them monthly, and handle your own taxes and social security in your home country.

  • Pros: Maximum flexibility, often higher take-home pay since companies don’t have to cover benefits. Easy for companies to set up.

  • Cons: Less job security, no guaranteed benefits, and you’re responsible for handling compliance and taxes. In some countries, this route may not be suitable for long-term stable work due to labor law restrictions.

Which Model is Best?

  • If stability and benefits matter most → Direct Employment or EOR

  • If flexibility and higher gross pay matter most → Freelancing/Contracting

  • If you’re aiming for long-term career growth with a US company → Prefer Direct Employment where available, or EOR if not.

Takeaway:

Working remotely for a US company is easier than ever, but how you’re hired matters. Understanding the differences between employee via subsidiary, employee via EOR, or independent contractor will help you choose the model that best fits your goals, lifestyle, and financial situation.