Hiring Canadian Engineers

Recently I've been getting a lot of questions from US startups on how to hire Canadians engineers. I wanted to share this with others so people are aware of the options and take advantage of the amazing talent in Canada.

Just to be clear, I am not a lawyer or accountant. These are just things I have learned from personal experience and research.

1. The first option is to setup a Canadian subsidiary and hire them under it. You can setup IP sharing agreements between the two companies. I don’t recommend this unless your have at least 3 people because the costs don't make sense. In this scenario you can use something like Humi (Canadian version Gusto) and do all the payroll and benefits through it.

2. The second option is to use a PEO (there are tons of old ones and then more modern ones like Deel). In the scenario the PEO will hire them under their Canadian corporation and then contract them out to you. This allows them to be a full time employee and get benefits without you setting up a subsidiary.

3. The final option is to hire them as a contractor and then have them invoice you. You can pay them through sites like TransferWise or Deel. One thing to note here: they will need to get their own personal benefits which can become a bit of a pain for the employee.

There are probably other ways but these are the most common ones. All these are thinking about the structure of the employment but there are other things to consider like equity. I will do another thread of those later.