I'm Sergio Pereira, and this is my Remote Work newsletter 👋
A major insecurity of any aspiring remote worker is what contract to sign, and if you need a work Visa. Especially when applying to remote roles in US companies.
Many people message me on Twitter with such questions, and I can totally relate with those struggles. In fact, it was a new world for me too. Back in 2016, being a contractor for the first time was daunting to me.
In this second issue of the newsletter, let's dive into contracts and visa requirements. It all depends on the company you're applying to, and this is what you should know as a Remote Work applicant:
- Local employment contracts, If a company has a local subsidiary in your country, they can extend you a permanend employment contract according your country's labor law. This would give you the less amount of headache, but it's rare, unless you're applying to a multinational company. You won't need another country's Visa in such case, since you'll be employed by a local company in your country.
- Employer of Record, When companies don't have a subsidiary in your country, they can engage a third party who has. Those are called Employer of Record (EOR), and the company will pay them a fee so they hire you. You'd be in fact an employee of the EOR, who'd extend you a local employment contract in your country. As such, again, you'd be employed by a local company in your country, not requiring further Visas.
- Contractor, This is the most common form of employment in Remote Work, especially when working with US startups, and other SMBs in general, which don't have subsidiaries and don't want to pay EOR fees. In this case you don't usually need a Visa, but you'll certainly need to engage a lawyer and/or accountant to guide you through to legal setup to be able to sign contracts and issue invoices to foreign companies.
It sounds more complex than it actually is. You can read more about Remote Work contract here.
For me, being a contractor has been the only option, since I work mostly with US startups. As with everything in life, I got used to being a contractor, and to its tradeoffs:
- Cons of being a contractor, It's obviously a weaker employment relationship, and contractors are the easiest employees to layoff. On top of that, being a contractor requires taking ownership over one's business and taxes.
- Pros of being a contractor, This extra ownership is daunting in the beginning, but one gets used to it. In fact, it offers greater flexibility regarding incorporation and tax management. The weaker nature of the contract also allows to avoid exclusivity clauses.
Thank you for reading this newsletter issue until the end!
If you're looking for a Remote Job you might want to join the waitlist for the Remote Jobs Braintrust, my new course + community to be launched in June/23.
See you next Friday,
Startup CTO & Remote Work Lover