Learn how U.S. companies can hire foreign independent contractors, covering legal aspects, benefits, and compliance tips. When a US company hires independent contractors who are US residents, it should have contractors complete Form W9.Establish an independent contractor agreement. Discover the essential steps and legal intricacies involved in hiring independent contractors from overseas for US companies. An independent contractor agreement is a legally binding document that spells out the scope of the work, obligations, deadlines, and payment. Use the steps below to engage and pay your Nonresident Independent Contractor. You can also read about other processes for nonresident contractors. If you are hiring a foreign contractor, you will need to have them complete IRS Form W8BEN. To do this, you must fill out and file Form 1099-MISC at the end of the fiscal year. Learn how to create, negotiate, and terminate independent contractor agreements.