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We are a US based LLC. We are adding two independent contractors based in England. Do we need to est. a UK based company to pay them?

Michael Losch's Profile


Ernie Humphrey CTP
Title: VP, Thought Leadership
Company: Stampli
LinkedIn Profile
(VP, Thought Leadership, Stampli) |


If the employees are in fact "independet contractors" and not direct employees of your compoany then I believe that you do not need to set up a legal entity just to pay them (you need to verify with legal counsel as this is a legal issue and not strictly a cash management issue and I AM NOT A LAWYER).

It seems as if you mean to treat them as independent, and avoid the Employers NI. And avoid giving them the employment protections that apply to employees.

You may want to get the contracts checked by a a firm specializing in this area.

IR 35 might be an issue for your contractors, but again you need to check the terms of your contract with them.

I hope this helps.


Michael Losch
Title: Chief Financial Officer
Company: Advanced Clinical Trial Solutions
(Chief Financial Officer, Advanced Clinical Trial Solutions) |

Thank you for the comment and the workers definitely choose and we prefer they remain Independent Contractors. I appreciate it

Topic Expert
Marc Schwartz
Title: Partner
Company: Schwartz International
(Partner, Schwartz International) |

Depending on the activities of the contractors, you should ensure you are not creating any UK tax liability (income, VAT, etc.) for the LLC.


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