My understanding of UpWork is that it is easy to make payments across borders; what kind of corporate structures allows this?

I'm interested in setting up a US company that contracts to individuals based in other counties, and if possible, even employs them full time. I know this is possible, because in my country of residence (South Africa) there are a large number of people who work for US-based companies (though I do not know if they are salaried or contractual)

Looking at this investopedia article, it seems that an LLC can only have US citizens as permanent employess? Also, looking at a question on this site: Changing the address of an LLC and tax requirements, and assuming that an LLC allows for payments to international contractors, can I contract to international (i.e. South African) individuals in my personal capacity?

closed as off-topic by Joe, Michael, NL - Apologize to Monica, JTP - Apologise to Monica Jul 31 '17 at 16:02

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  • 4
    I'm voting to close this question as off-topic because it is not about personal finance. – Joe Jul 31 '17 at 14:26
  • Noted @Joe. Is there a Stack Exchange site that would be a better fit? – Zach Smith Jul 31 '17 at 14:54
  • Not that I'm aware of. – Joe Jul 31 '17 at 15:10

Permanent employees are the distinct opposite of contractors.

Upwork can easily have business entities (limited liability company equivalents) in multiple countries, and it can make payments between them. Or they can merely use existing payment infrastructure (paypal, amazon) to accomplish the same thing.

Their corporate structure is a red herring and most likely unrelated to what they've accomplished.

  • Thank you, do you know where I could get more information on 1) how to make payments between corporate entities in different companies, and 2) the tax implications of using things like visa/paypal/amazon/etc to pay from a US person / LLC to a non-US person? – Zach Smith Jul 31 '17 at 15:25
  • @ZachSmith theres almost nothing to consider here. Why not just use paypal to pay your contractors? Maybe you would be interested in knowing that the payments are tax deductible in the us? – CQM Jul 31 '17 at 18:18
  • thanks. yes, that is helpful to know. I've asked another question here in response to that: money.stackexchange.com/questions/83512/… – Zach Smith Aug 2 '17 at 9:45

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