We are a fully remote 10 people startup. Everyone is in a different country, mostly in Europe. The only option to make it work is to have everyone as a contractor, because setting up legal entities that can do employment around the globe is not feasible for SMEs.
Also there are some companies selling full employment and payroll option, reporting. They might work for large enterprises, but for us it is just easier to limit the talent pool for those who are willing to work as a contractor and pay then more for taking that risk. Global talent pool is larger than any local talent pool, so you find more staff, more talented staff and staff willing to go for more competitive compensation.
