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What is it about the company structure of a corporation like “Automattic Inc.” That allows for their employees to live anywhere in the world?

From Automattic’s Website:

Automatticians Work from Anywhere

HOW WE WORK

Choose your own adventure · Everyone works from the location they choose. We’re spread out all over the world in more than 50 countries. We track about 70 percent of our projects on P2-themed WordPress.com blogs, 25 percent in private chat rooms, and the rest on Slack. Because of the geographic variance, we’re active 24/7. We care about the work you produce, not just the hours you put in.

I am looking to register a U.S. company in a forward-looking manner so that eventual employees can live anywhere in the world and work remotely (including myself).

Does anyone have insight into the type of company structure required to make this happen? I understand that U.S. entities can only employ U.S. employees. What is it about this type of company that enables their employees to live anywhere in the world?

Thanks.

Answer 12802

Most of the time there’s nothing forward thinking about it.

Some companies, like Github, formally incorporate locally and only hire employees in their shortlist of countries. Because they’ve a local branch there and hire actual employees.

Most other companies, like Automattic insofar as I’m aware, will just hire employees as contractors and call it a day.

FYI doing the latter leaves the door open for tons of venues for liabilities down the road, in the sense that contractors can readily claim that they actually were employees - complete with unpaid tax liabilities, etc. that come with it. It’s not a big deal if you’re a small business with no assets but it’s a potential Damocles over your head down the road if you grow big.


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