What are the HR roadblocks/hurdles that I would face in trying to get this candidate hired? The candidate does not want to move to the US. Could this person be hired as a contractor internationally? If we wanted to hire them full-time, permanent would that require setting up an entity in the country that they live in?
Most of the roadblocks would be in the form of communication and getting things done. However, if the person is capable of managing him/herself well and they are productive at work, whether in an office or not, the work will still get done.
>Could this person be hired as a contractor internationally?
That is what will be done. They will lose out on US-only benefits, but I've seen SV/SF salaries, and if you're paying that much to a person in a third-world country, they won't care for 401k or dental insurance. You should consult a lawyer for the best way around this (maybe a tax benefit too).
>If we wanted to hire them full-time, permanent would that require setting up an entity in the country that they live in?
Multinationals do this for tax and other benefits. You don't need to do this (unless you are producing a tangible product and there is big demand in the foreign market).
We treat everyone as equal as we are able to. Contractors or employees. The way we define this: if you do the same job and have similar experience, the cost to the organisation will be the same. Salary+taxes+benefits costs are the same. This works quite well.
We have four s/w developers hired in the organization as employees. The other dozen are hired as contractors, including me as CTO & co-director.