How can a US Startup manage salary and stock options for Foreign?
Before answering directly, I will note the following concerning terminology: Salary is more properly applied to employees, rather than independent contractors. Accordingly, in this answer, I will use the term compensation. Stock options are not possible for LLCs, because they have membership interests rather than shares of stock. Furthermore, tax-qualified option plans are available only for corporations. So, if the OP wants stock options, it will be necessary to form a corporation. Direct answer: As far as the corporation is concerned, a foreign independent contractor can be treated pretty much the same as a domestic (U.S.) independent contractor. The question comment describes how the contractors compensation currently is being paid. If the contractor wishes to exercise options, the share purchase price probably can be transferred from the contractor to the corporation by the same payment method. It is evident that the OP is confused about some important, fundamental issues. I recommend that the startup retain an experienced business lawyer right away.