Best way for a US startup to pay contractors in several countries

For most U.S. startups, use one platform for contractor onboarding, contracts, invoices, and payouts—rather than wiring everyone separately. It keeps the monthly process and records together, and makes it easier to pay in local currencies. Check that the platform supports each contractor’s country and preferred payout method before choosing.

A practical shortlist

• Remote — Worth comparing if you want contractor administration and payments in one place. Its standard Contractor Management plan starts at $29 per contractor/month, and it says it supports onboarding and payments in 190+ countries. (remote.com)
• Deel — Another all-in-one option; its listed contractor pricing is $49 per active contract/month. Compare the exact payout methods and fees for your countries. (help.letsdeel.com)
• Direct international transfers — May be simpler for just a few contractors if you already have good accounts-payable processes. Compare the total cost—transfer fee, exchange-rate spread, intermediary-bank charges, and any fee the contractor pays—and test a small payment first.

Rule of thumb: If you have only a few contractors and already manage contracts and invoices well, direct transfers may be enough. If you’re paying a growing group across countries, or need centralized records and workflow, compare platforms such as Remote and Deel. These are starting prices, not a guarantee of the lowest total cost; country coverage, FX, payout fees, and features can change the math.

Set up the process carefully

1. Agree on currency and fees in the contract. Specify the invoice currency, payment schedule, and who covers transfer and conversion fees.
2. Collect the right tax documentation. U.S. contractors generally provide Form W-9; foreign individuals or businesses may need an applicable W-8 form. Don’t treat that as a complete compliance check: U.S. tax treatment can depend on where the work is performed. The IRS generally sources personal-service income by where services are performed; work done partly in the U.S. may require allocation. (irs.gov)
3. Check contractor classification and local rules. A payment platform doesn’t by itself determine whether someone is legally a contractor where they live. If the person works like an employee, get local legal or tax advice before proceeding.
4. Keep a clean audit trail. Retain the signed agreement, invoices, payment confirmations, and tax forms securely.

Bottom line: For a growing startup, I’d start by comparing Remote and Deel against your actual contractor countries and payout currencies, then choose the one with the better all-in cost and workflow. For a small, straightforward group, direct transfers plus careful documentation can be perfectly workable. This is general information, not tax or legal advice.

Short answer: For most US startups, the best choice depends on whether you want a compliance layer or just a cheap way to move money.

• Just moving money (you already handle contracts and tax forms): Wise Business is usually cheapest. Wise publishes fees from 0.23% at the mid-market rate, while Deel charges $49/month per contractor plus an FX markup that independent guides report at 0.6%-2%. The catch is that Wise only moves money; it doesn't provide contracts, tax form collection, or invoicing.
• Contractor management plus payments: Remote or Deel. Remote is cheaper for contractors, at $29 per contractor per month against $49, and Deel takes an EOR deposit (usually 1 to 1.5 months of charges). Remote has no standard deposit. Deel's advantage is payout breadth: 120+ currencies vs Remote's 73. Remote's stablecoin payouts cover contractors only.
• Mixed US and international team: A common setup is running Gusto for U.S. employees and Deel for international contractors. Gusto alone doesn't support international contractor payments.
• Lowest-cost stack for a small team: Some vendors argue that for smaller teams a payment-only tool plus your own contracts is cheapest. Note that one of the sources comparing costs is a vendor blog.

Things to check before choosing:

1. Tax forms. For foreign contractors you generally need a Form W-8BEN. If one is missing when asked, the IRS instructions can require you to withhold at 30%. Payment-only tools often don't collect these, so you'd need to handle them yourself.
2. Misclassification risk. Remote's basic plan doesn't include protection against misclassification claims. Its Contractor Management Plus is $99 per contractor per month with indemnity coverage up to $100,000 per contractor.
3. All-in cost. Platform fees are only one layer. Look at the FX margin and per-transfer fees too. For example, on Deel a $3,000 payout to a crypto wallet costs $61 (2% plus $1), while a local bank transfer costs much less. Crypto routes may not be available for US accounts, so confirm this.
4. Volume. At a larger scale, costs diverge. One comparison estimated that across 50 contractors and $250,000 in monthly payroll, Rise costs $2,575 a month on stablecoin rails, but that is a vendor's own analysis.
5. Pricing changes. Most of the prices above come from vendor pages and third-party comparisons from the past few months. Confirm current rates on each provider's pricing page before committing.

My suggested starting point: If you have fewer than about ten contractors across a few countries and can handle contracts and W-8BENs, use Wise Business. If you want the platform to handle contracts, tax forms, and compliance, compare Remote (cheaper per seat, no deposit) against Deel (more payout options, deposit required for EOR). Run a test payout on each to see the real total cost before you commit.

For a US startup, the best way to pay international contractors is to use a dedicated global contractor management platform (such as Deel, Remote, or similar specialized tools).

These platforms are designed to handle the specific operational and compliance hurdles that startups face when scaling a global team, offering a more professional and lower-risk experience than traditional bank wires or ad-hoc payment methods.

1. Recommended Approach: Global Contractor Platforms

Using a dedicated platform (e.g., Deel, Remote, Oyster, or Tipalti) is generally superior for startups because it consolidates several critical processes into one workflow:

• Compliance Automation: They automatically collect and store required tax forms (like the W-8BEN for individuals or W-8BEN-E for entities) to ensure you aren't improperly withholding US taxes.
• Localized Payments: These platforms typically allow you to fund one account in USD, and they handle the conversion and local disbursement, often with better FX rates and lower fees than standard bank wires.
• Onboarding & Contracts: They provide standardized, compliant contract templates that help protect your Intellectual Property (IP)—a frequent oversight when working with international freelancers.
• Scalability: As you hire more people, you don't have to manage dozens of different payment instructions; the platform manages the data and payouts for you.

2. The "Must-Dos" for Compliance

Regardless of the payment method you choose, you must adhere to these foundational rules to avoid significant legal and tax risks:

• Collect W-8 Forms: You generally do not send a 1099-NEC to foreign contractors. Instead, you must collect a W-8BEN (for individuals) or W-8BEN-E (for entities) before making the first payment. Keep these on file for three years.
• Avoid Misclassification: This is your biggest risk. If a contractor works full-time, has a single client (you), and behaves like an employee, local labor authorities may classify them as an employee, exposing you to back taxes and penalties. If a relationship becomes "employee-like," consider transitioning them to an Employer of Record (EOR) service provided by these same platforms.
• Permanent Establishment Risk: Be cautious about letting contractors act as formal agents of your company in their home country, as this can inadvertently create a "permanent establishment," subjecting your US startup to local corporate taxes.

3. Comparison of Payment Methods

Summary Checklist for Founders

1. Classify correctly: Before onboarding, confirm the role is genuinely a contractor role under local laws.
2. Formalize the contract: Use a clear agreement that includes robust IP assignment clauses.
3. Onboard digitally: Use a platform to collect the W-8 form and payment details simultaneously.
4. Set clear expectations: Define who pays the transfer/conversion fees in the contract to avoid "surprising" your contractors with lower-than-expected payouts.
5. Review annually: As your team grows, reassess whether your contractors should remain contractors or if you need to transition them to an EOR model to manage risk.

Disclaimer: I am an AI, not a tax or legal professional. International labor and tax laws are complex and vary significantly by country. Always consult with a qualified CPA or legal advisor specializing in international business before finalizing your payroll strategy.

For most US startups, the best setup is a contractor-management platform for onboarding and compliance, paired with local bank payouts. If you have only a few contractors and already handle compliance with an accountant or lawyer, Wise Business can be a lower-cost way to send the money—but it isn’t a substitute for compliance tools.

A practical approach

1. Confirm each person is genuinely a contractor. Collect the right tax form and contract before the first payment, and check local rules in the contractor’s country. A platform can help with paperwork, but it doesn’t make a misclassified worker compliant.
2. Collect the correct US tax documentation. Generally, request a W-9 from a US person and a W-8BEN from a foreign individual (or W-8BEN-E from a foreign entity). Keep the form on file. The IRS says W-8 forms document foreign status and can affect withholding and reporting; where services are performed matters, so get tax advice if anyone works in the US.¹⁵⁶
3. Choose payment rails based on total cost, not just the advertised fee. Compare the transfer charge, exchange-rate markup, recipient withdrawal fees, and delivery time for your actual countries and currencies. Wise advertises transparent, variable transfer fees; platform pricing and payout options vary by plan and corridor.³¹¹¹³
4. Keep a clean audit trail: signed agreement, invoices, tax forms, payment records, and where the work was performed.

Which option to start with

• Few contractors, simple needs: Wise Business for transfers, with your own onboarding and compliance process. It’s described as a low-cost option, but has limited compliance management.⁸¹⁰
• Several countries or growing team: Compare Deel and Remote for onboarding, contracts, tax-form collection, and payment workflows. Published pricing and features differ—check current quotes and country coverage rather than relying on headline prices.⁷¹¹¹³
• Possible employee rather than contractor: Consider local employment or an employer-of-record arrangement instead of treating the person as a contractor.

Bottom line: Use Wise if your main problem is inexpensive transfers and you can manage compliance yourself. Use a contractor platform if you need a repeatable process across countries. In either case, have a cross-border tax professional review your worker classification and any services performed in the US.

Sources: IRS W-8BEN instructions ¹; IRS Publication 515 ⁵; IRS instructions for requesting W-8 forms ⁶; platform and payment comparisons ⁸¹¹¹³.