Your team is across Latin America. Is your back office ready for that?

In summary: if your company is incorporated in the United States and you're hiring contractors in Latin America, you need an independent contractor agreement, the W-8BEN form before the first payment (W-9 and 1099-NEC if the contractor lives in the U.S.), and organized documentation of each payment. And for that distributed team to work well, flexible workspace in each city where they operate.

Your company is incorporated in the United States. Your team is spread across Buenos Aires, Bogotá, Mexico City, and Lima. And a good portion of that team works as international contractors.

Your designer in Bogotá and your sales rep in Mexico work from Desky spaces, the platform that allows companies and individuals to access a network of coworking spaces, meeting rooms, and flexible offices through a single plan or pay-per-use. She books a desk close to home; he books a meeting room to meet clients the same day he needs it. The team scaled, and so did the workspace.

But there's something that doesn't scale on its own: the contracts, tax forms, and accounting for each person you hire. And that's exactly what an investor looks at in the next funding round.

When each contractor is handled their own way

No one plans it at first. The first developer starts with an email agreement. The designer from Bogotá gets paid by transfer and sends the invoice over Slack. The sales rep from Mexico signed a contract, but nobody knows where it went. Each decision, on its own, makes sense. Together, they're a problem.

In a due diligence process, disorganized documentation, misclassification of workers, and lack of payment records are immediate red flags. And it's not just a matter of perception: if the IRS audits and your forms aren't in order, it can demand a retroactive withholding of up to 30% on all payments.

Contractor or employee: the line you can't cross

In the United States, the difference between an employee and an independent contractor is key. An employee comes with withholdings, benefits, and strict labor laws. A contractor is an external provider: they run their own business, decide how and when to do the work, and pay their taxes in their country of residence.

Misclassifying an employee as a contractor is one of the most serious risks for a startup, and the IRS penalizes it. To avoid it, the relationship has to function like that of an independent provider:

• No fixed hours imposed or daily micromanagement.
• No exclusivity requirement.
• A clear contract backing it up.

W-8BEN, W-9, and 1099: what to ask each person for

The rule is simple: W-8BEN for talent in Latin America, W-9 and 1099 for talent in the United States.

W-8BEN. It certifies that the contractor is not a tax resident in the U.S. You don't send it to the IRS: you keep it as backup. Request it before the first payment and renew it every three years. If you hire a foreign company or agency, the form is the W-8BEN-E.

W-9 and 1099-NEC. If the contractor resides in the U.S., first have them complete the W-9. Then, your company issues the 1099-NEC, which goes to the IRS and to the contractor before January 31 of the following year.

A distributed team also needs a place to work

Getting your paperwork in order is half the job. The other half is making sure your team has a place to work productively, wherever they are. With Desky, each person has access to a network of coworkings, meeting rooms, and flexible offices across Latin America, with a single plan for the entire company or pay-per-use. You see in one place who uses what and how much you're spending, without renting offices or managing individual reimbursements. And since the contractor chooses when and where to work, the workspace supports their independence rather than imposing a schedule.

When you need more space, and you need it now

Not everything is day to day. A large company has peaks: a special project, a team assembled for a few weeks, a client that needs to work under specific conditions.

That's what the WPP Production team in Buenos Aires experiences. Their clients demand high levels of privacy and security protocols, and their own offices are equipped for that. The catch is that when a client needs to use them, the internal team has to work somewhere else.

The HR team solved it with Desky. Throughout August, the team worked in a private office that occupied an entire floor in Palermo. And now they've added a new office for 16 people for 40 days at another coworking in the downtown area.

No bidding, no long-term contracts, and no operational disruption. When the business needs space, Desky delivers. When it no longer needs it, there are no attached costs.

Culture that scales

Anyone who's been to a Lazo community event knows that the conversations that generate the most value happen in person. In a distributed company it's the same, but you have to design it. With Desky, that becomes possible in any city:

• Vibrant hubs in each city. The Bogotá team can have a fixed day per week to work together without the company signing a lease.
• Cross-team meetings. Product and sales can get together in the same city for a working session that would take weeks of back-and-forth on Zoom.
• Onboarding with a human touch. New hires can spend their first days working alongside their team or manager. That accelerates the ramp and builds connection from day one.
• Professional presence with clients. Your sales team can meet with clients and investors in meeting rooms that match the caliber of the company they represent, in any city.

→ Discover Desky's network of spaces

Lazo: one partner for your entire back office

Lazo centralizes company incorporation, taxes, accounting, and support for growth in a single system. It's built for founders with companies in the United States and teams across the region.

With Lazo, your international team stays in order:

• Clear accounting. Each payment to contractors is properly categorized and separated from employee payroll.
• Complete documentation. Contract, invoice, and payment proof for each transfer, ready for any audit or data room.
• Compliance calendar. January 1099s and W-8BEN renewals won't catch you off guard.
• Taxes on track. Your company's obligations in the United States, handled by a team that understands how a Latin American startup operates.

Lazo and Desky share a common competitive advantage for LATAM founders: moving away from scattered vendors and centralizing everything with a single partner saves time that you can use to scale your business.

Checklist: your next contractor in 7 steps

Before hiring the next person, make sure you have all of this:

• [ ] Confirm that the role qualifies as an independent contractor and not as an employee.
• [ ] Sign an independent contractor agreement with IP assignment and confidentiality.
• [ ] Request the W-8BEN (Latin America) or W-9 (United States) before the first payment.
• [ ] Add the contractor to a centralized payment platform.
• [ ] Agree that they'll issue you a monthly invoice.
• [ ] Record the expense in the correct category in your accounting.
• [ ] Set reminders: W-8BEN renewal every three years and 1099 issuance each January.

Frequently asked questions about contractors in Latin America

What form do I request from a contractor living in Latin America?

The W-8BEN, if they're an individual, or the W-8BEN-E, if they're a company or agency. It certifies they're not a tax resident in the U.S. You don't submit it to the IRS: your company keeps it as backup.

How often do I need to renew the W-8BEN?

Every three years. An expired W-8BEN is equivalent to not having one, and the IRS can demand a retroactive withholding of up to 30% on payments.

What's the difference between a contractor and an employee?

A contractor is an independent provider: they decide how and when they work, they have no exclusivity requirement, and they pay their taxes in their country. An employee has set hours, withholdings, and benefits. Treating an employee as a contractor is a misclassification that the IRS penalizes.

When is the 1099-NEC issued?

Only for contractors who reside in the U.S. Your company sends it to the IRS and to the contractor before January 31 of the year following payment.

How do I provide workspace for a distributed team across multiple cities?

With a flexible space network like Desky: desks, meeting rooms, and private offices in different Latin American cities, with a single plan for the company or pay-per-use, no long-term rental contracts.

Structure in the United States, team across the region

"A global team is a huge competitive advantage. But if contracts and tax forms aren't in order, that advantage becomes a hidden liability that stalls your next funding round." Juan Manuel Barrero, CEO of Lazo.

Investors value founders who take compliance seriously from the start. An organized back office shows operational maturity and speeds up any due diligence.

With Desky, your designer and sales rep could have a place to work in any city, from a desk for day-to-day work to a meeting room for client meetings. And with Lazo, your back office would be up to speed: contracts, taxes, accounting, and compliance in one place, so that team can grow without surprises.

About to hire your next contractor? Talk to Lazo and get your back office in order before an investor asks for it.

→ Schedule a call with Lazo

Is your team already working across multiple cities? Give them a place to work in each one.

→ Book a space with Desky

This content is a general guide and does not constitute legal or tax advice. For your specific case, we recommend validating it with a professional.