How to Hire and Pay to the International Contractors

Most businesses are adopting the practice of finding international talents from outside, but many of them do not understand the legal consequences of establishing cross-border business relations. This will help you identify what needs to be considered into account by your company to build a hassle-free and stable business. An online business employs contractors from a range of countries.

In deciding whether an individual is an independent contractor or an employee, a company has to take up all the factors. There will be many factors that may indicate that the individual is an employee, while others will suggest that the individual might be an independent contractor.

Who are International Contractors –

In particular, individuals who are in an autonomous occupation, company or career offering their services to the public are independent contractors as per the IRS concept. The issuer will have the right to determine only the outcome of the job not what is going to get done or how it is going to get done. Contractors are entitled to self-employment tax and there is no need for companies that hire employees to withhold income tax and give benefits.

Let’s look at the below steps for hiring contractors from abroad

Whether your preferred candidate is from another region, the method of recruiting new employees is somewhat different from a traditional system of in-house placement. Skype or some other teleconferencing device may support the entire interview, but you are going to have to ask questions about the remote work situation— specifically about interaction. Don’t make sure to check past experiences and credentials and any other recruit you could.

How to Hire and Pay to the International Contractors

When you employ a foreign worker, you may be concerned about securing work permits. If the employee does not stay for the contract period, you do not have to struggle with permits at all. Furthermore, you will have to get the proper paperwork done and get all the permits if you want to bring an international contractor to your region even if it is for a short duration.

There will be different ways of determining international contractors ‘ withholdings, and it’s important to pay income taxes on time. Failure to pay taxes on time could lead to heavy penalties.

Various methods to pay contractors

  • The best-known way to receive money abroad is through an international wire transfer.
  • Another international payment method that has been developed is a money order. By charging the fee you would like to give including an invoice, this method is very popular among while hiring contractors from abroad.
  • PayPal – one of the most popular internet payment applications to transfer money.
  • Xoom which is owned by PayPal, but provides its very own services to individuals and companies seeking to send funds from the United States.

Wrapping Up

Although recruiting international contractors is certainly different from hiring conventional domestic workers, most employers consider the benefits that make up for the effort needed. If you find a suitable candidate for your business, use the advice above to make ensure that you are prepared properly for the on-boarding process.

What Is a General Contractor?

Also termed as main contractor or prime contractor, a general contractor is vested with the responsibilities of overseeing a construction site, management of the business vendors and communicating the information to all the stakeholders throughout the course of a building project. They act as the intermediary between the builder/developer and the group of subcontractors who execute diverse job assignments such as electrical, plumbing, carpentry, and flooring work.


A general contractor is an individual or an entity who may hire subcontractors and provide supplies for a given project.

Where are they deployed?

A general contractor can comprise individual partnership, corporation, or any entity or group of entities in business that can execute construction as a contractor. And, they will shoulder total responsibility for the timely completion of the project with the help of the project resources to execute or supervise the work.

General contractors are employed by property developers or property owners to organize and continue the work or diverse types of projects including residential homes, roads, office buildings, treatment plants and government buildings and the like.

They are responsible for hiring subcontractors and overseeing them. They review the architectural plans, purchase building materials, and ensure all deadlines are met.

What Is a General Contractor?

Educational background required

Any individual aspiring to become a general contractor must fulfill the relevant criteria.

The applicant:

  • Should be 18 years or older
  • Must have secured a high school diploma or equivalent qualification duly recognized.
  • Must be eligible to work in the United States as per law.
  • Must have a good work record in the construction sector and should be able to discuss and resolve any job-related issues.

Additional requirement

State governments may mandate each applicant to pass such an exam as may be determined by relevant law. Further, a few states may also make it mandatory to buy a liability insurance cover, read more about liability insurance by clicking here, get Federal Tax Identification Number and submit the address of business with utility or lease bill.

Importance of experience

Real work experience in construction projects is critical to becoming a licensed contractor. You can get experience by working in diverse crafts as a carpenter, electrician, or a plumber. Supervisors experienced in construction are also useful.

Oral and written communication skills

The applicant must have good communication skills (oral and written). This is important because they need to hire and evaluate subcontractors and participate in project negotiations with property developers and owners.

How to get a license?

To get the license, apply for it once you choose an area of work. You need to register your company. You need to pass the contractors’ exam. You may be required to buy insurance and bond as per the rules of the State where you wish to start contracting. Further, your social antecedent must be clean. You can get a Contractor License when you fulfill all these criteria.

To start the job, the applicant must have a contractor license. It is issued to tradesmen having a predetermined level of expertise and experience. These criteria vary across States.

Benefits of license

Though a few states contracting is permissible without a license, having a license will be advantageous for you. You can market yourself to be reliable and trustworthy to hire.

  • The license will make you eligible to work as a legal entity.
  • As you’re licensed, you need to fix electrician, plumbing work, and mechanical work as these types of trades all have license requirements.
  • It will protect you from all potential legal tangles.


Whether you oversee a building or other construction project, you get exposed to the specifications of diverse specialties. All this will enrich your experience, make you employable at competitive remuneration over time.

How To Get The Contractor License

A license is a primary requirement for starting any type of business. Contracting business is no exception. Getting a Contractor license without proper knowledge of the process may get cumbersome and complicated. Plus, the run-around that you may have to experience will run you out of all the enthusiasm you have for your new venture. Let’s walk you through the process of procuring a valid contractor’s license.

Determine the Basic Requirements

This is predominantly something you as an applicant, need to take care of. First things first, determine the nature and scale of business you would be doing. Based on that your license class will be determined. Next check if you would want to add a specialization to your business. Then come the naming and registration of your business. You need to register your company as a proprietorship or a limited company based on which the license will be provided in the name of the registered business. Once all your requirements and company registration documents are ready you can then look into applying for a contractor’s license.

How To Get The Contractor License

Pass an Exam

You may have to sit for a small contractor exam to get a license. Different states have different requirements and the same may vary. These exams comprise of many genera topics based on various business aspects. You may contact the ICC (International Code Council) to know about the exams required in your area. This exam is important as the certificate you obtain after passing this exam is one of the documents required when you apply.

Background Checks and Verification

If you wish to apply for a contractor license you will have to get your background check done by the local authorities. They check if you have any criminal background and provide you with a certificate if you pass the checks. Make sure you retain the Background Check certificate for submission along with the application.

Submit the Application

This is the final and most important step. Ensure that you have gathered all the required documents required to be submitted along with the application forms. Some commonly required documents comprise of; Company name and details, Contracting Class and Specialization, your education and expertise summary, your identification documents, ICC Approved exam passing certificates, Background check certificates, etc. Get in touch with your local authorities and agencies to get the exact details of the required forms to be filled and necessary instructions. Make sure you are filling the forms as per the given instructions. There may be a fee associated with filling and submission of the form. Pay the fees and get an application reference number to track your application.

Wait for It

Good things come to those who wait. And once you have submitted your application you may have to wait a bit but you will eventually get your contractor license. Make sure you obtain a license for each state you want to work in for every state has different regulations. Compliance to the law is the primary reason behind obtaining a license and ensure you are complying with the law of the land at all times in conducting your business.

How to manage your construction business

Are you having difficulties to manage your construction business? Do you want to know how to make profits? Managing a construction business might not be easy especially when you are new to this industry. Construction business demands industry knowledge, expertise in the building process, accounting skills, and understanding of the economic conditions to achieve the desired success. The benefit is that you will always have clients. You just need to know how to reach and inspire your potential clients to invest in new properties. Here are a few things that you can consider to manage your construction company more effectively.

Design Your Team

Your team will have the key role to decide the success of your business. You will have to hire the best skills in the industry. Besides, you will have to train them to perform better regardless of the complexities and demands of projects. You will have to develop a healthy working environment so that your workers will be motivated to contribute to your success, read more about developing healthy working environment at You can offer some employee benefits, incentives, and competitive pay. Also, address the safety issues and make sure that all emergencies are handled with the utmost care. These things are important for a successful construction company. As a managing authority, you will have to combine many duties such as training, hiring, firing, and maintaining the discipline in your company.

How to manage your construction business

Delegate Works

A manager must know to bid competitively against competitors. Also, you will have to manage your assets properly to ensure that all your workers are paid on time. A construction company has to manage a lot of things both administrative and financial. Therefore, it is important to hire someone to assist with your work. If someone will be there to look after the office, booking tasks, and communication, you can manage other things efficiently. You will have more time for bidding preparation, worker interaction, and other job duties.

Manage Finances

Construction business demands huge expenses. Some startups consider outside financing for buying vehicles, tools, equipment, and materials. As the manager or owner of a construction company, it is important to understand the financial needs of your company and how to manage it effectively. You should know how to write your business plan and manage long-term and short-term operating costs.

Manage Your Clients

This is one of the important aspects to create your brand identity. Like any other business, the success of your company will depend on your clients. You will have to take all the required steps to satisfy your clients and win their trust. Make sure that you are present to answer their queries. Good communication skills is required to be effective during a conversation. A good construction manager should develop decision-making and problem-solving skills to manage the business smoothly.

All these tips might help you to lead the industry. A skilled construction manager takes care of every detail to ensure that all his team members are working together for the benefit of the company. Concentrate on your leadership, problem-solving skills, team, and company finance to accomplish your job more intelligently and smartly.

What to think about before you start your contracting business

Working as a contractor has many benefits – it pays well than the same salaried job. The predicted growth of the construction industry has made many people consider starting a contracting business. If you’re interested in getting started, here are some considerations you should think about before starting your construction business.

1. Mentoring and expertise

Don’t start a contracting business blindly. There are many resources you will need as a contractor and a business owner. Mentoring is the best way to learn all the ins and outs of any business. Look for a mentor in your local area and spend some time working with him or her. Enroll in a local business class and then develop a business plan.

2. Do your research

There are so many online tools you can use to learn more about running a construction business. Take time to browse blogs, software programs, and general advice. Learn more about software programs that will help you manage your business.

3. Get financing

You need capital to start your business. There are many credit unions and banks offering bank loans at low interest. Look for the best financing option for you. Local Small Business Administration is the best option for a construction business.

What to think about before you start your contracting business

4. Name and register your business

Decide on the best name for your business and then register it. The business name should be unique. For better business, use a name that is related to the service your company will be offering.

Before opening the doors of your company, you need to obtain licenses and permits. A general business license and other specific licenses are required to protect your company and your clients. If you are doing plumbing and electrical work, you need a tradesman license. It is illegal to run an unregistered construction company.

5. Insure your business

Look for an insurance company offering a contractor’s insurance plan. Purchase the plan that includes property, general liability, and vehicle insurance. Make sure to adhere to all the legal requirements when it comes to obtaining insurance coverage.

6. Arrange surety bonds

A surety bond is a third party guarantee that pays customers when your company is unable to fulfill all the work obligations stated in your contract. Regulations for surety bonds vary from state to state. Look at your state’s surety bond requirements or talk to a surety bond agent near you.

7. Develop an OSHA plan

The Occupational Safety and Health Act requires all workers employed in a construction company to work in a safe environment. The construction industry has many hazards. It is your role as a business owner to provide your employees with appropriate clothing, footwear, and helmets.

8. Build a workforce

You’re going to hire employees for your company no matter how small it seems. If you are planning to take large or medium-sized projects, you will need to hire a considerable number of employees. Use accounting software such as Zoho and Freshbooks to simplify the bookkeeping chores.

To be on the safe side, research for regulations in both state and federal hiring practices in your state.