While there are fewer responsibilities when hiring contractors, you still need to comply with local laws, taxes and IRS filing requirements. If your contractor is selfemployed (a sole proprietor in their country), you'll need them to fill out Form W8BEN.This guide will help you learn how to hire overseas contractors and pay them compliantly. How to hire overseas contractors in a foreign country. If you are hiring a foreign contractor, you will need to have them complete IRS Form W8BEN. Foreign limited liability companies that are "transacting business" in Michigan must first obtain a Certificate of Authority from this agency. How does a foreign contractor complete the W8 BEN? A foreign independent contractor is a nonU. However, when you seek out foreign independent contractors, it's important to know how to do so legally. Anticipating a significant portion of business revenue will come from the state.