Hiring independent contractors globally can be a complex and risky endeavor.

From misclassification penalties to regulatory uncertainty, the stakes are high for companies operating in multiple jurisdictions.

Rise provides a best-in-class Agent of Record (AOR) service that makes compliance simple, fast, and secure.

Key Takeaways

• Rise AOR minimizes misclassification risks and streamlines global contractor payments.
• Supports crypto and fiat, enabling fast and flexible payouts.
• Ideal for high-growth teams, Web3 companies, and compliance-sensitive industries.

What Is an Agent of Record (AOR)?

An Agent of Record (AOR) is a third-party entity that assumes legal responsibility for managing independent contractors on behalf of a client company.

This includes handling contracts, tax reporting, and compliance checks. By acting as the intermediary, the AOR reduces legal exposure for the hiring company.

Why AOR Services Are Critical in 2025

The legal environment for contractor engagement has become increasingly complex. Regulatory shifts such as California's AB5 and EU-wide reforms mean that companies must carefully navigate classification laws. AOR services provide a safe, scalable alternative to managing compliance internally.

Real-World Risk: What Happens Without an AOR?

A notable example is Uber's 2022 settlement, where the company paid $100 million to drivers in California and Massachusetts due to misclassification lawsuits.

These penalties stemmed from engaging contractors directly without adequate compliance structures. Without an AOR in place, companies like Uber expose themselves to significant financial liability and long-term reputational risk.

Why Choose Rise for AOR?

Full Legal Protection

Rise becomes the legal agent for your contractors, removing your company from the legal line of fire. This setup helps mitigate potential liabilities and shields your business from costly lawsuits. It’s a proactive approach to staying ahead of regulatory scrutiny.

Compliance-First Approach

Rise performs detailed classification checks to ensure every contractor is properly categorized.

We also manage the entire administrative stack including NDAs, background checks, contracts, and year-end tax forms like 1099s or W-8BENs. This ensures consistent legal and financial oversight.

Global Contractor Management

Rise enables seamless contractor onboarding in over 190 countries. Companies can invite contractors through the Rise dashboard and track onboarding in real time.

It’s fast, intuitive, and built for scale.

Crypto & Fiat Payment Flexibility

Companies can fund their payrolls in either USD or stablecoins like USDC and USDT.

Contractors then have the freedom to withdraw in either local fiat or cryptocurrency. This flexibility caters to both traditional firms and Web3-native businesses.

How the Rise AOR Model Works

Step 1: Create Your Business Account

Getting started is easy. You provide your business name, address, and contact information to set up your profile. Once your account is active, you can begin adding contractors to your dashboard.

Step 2: Invite Contractors

From your dashboard, you can send onboarding invitations directly to contractors. Each contractor receives a secure link to join the platform and complete required documentation. Rise handles all legal paperwork from there.

Step 3: Rise Becomes The Legal Agent

Once the contractor accepts, Rise signs a direct agreement with them. This agreement makes Rise their legal agent, allowing you to subcontract work without taking on the legal relationship. You maintain all project-related control.

Step 4: Fund Payroll in Fiat or Crypto

You can choose to fund payrolls via traditional wire transfers or by sending stablecoins. Payments are processed securely and made available quickly. This ensures your contractors are paid on time, every time.

Step 5: Compliance and Tax Reporting

Rise monitors classification risks and manages tax documentation. At year-end, they issue the appropriate tax forms and reports. This simplifies financial planning and reduces the need for in-house compliance expertise.

Step 6: Contractor Withdrawals

After receiving payment, contractors can withdraw funds in their preferred currency. Options include local bank transfers or crypto wallets. This gives your team a better contractor experience, no matter where they are.

Who Should Use AOR Services?

High-Risk Jurisdiction Operators

States like California and countries in the EU enforce stricter contractor laws, increasing the risk of misclassification lawsuits and regulatory penalties.

Companies operating in these regions need an added layer of protection to confidently work with independent contractors.

Rise’s AOR service acts as that legal buffer, ensuring full compliance with regional labor standards and dramatically reducing the risk of non-compliance fines.

Enterprise-Level Businesses

Larger firms with widespread contractor networks often struggle to manage contracts, classifications, and compliance across borders. With differing labor laws and tax regulations in every country, centralizing compliance becomes crucial.

AOR services like Rise standardize onboarding, documentation, and risk management, allowing enterprise teams to maintain legal integrity while scaling operations smoothly.

Crypto-Native or Hybrid Companies

Many payroll providers lack the infrastructure or regulatory clearance to handle crypto payments.

For Web3-native companies or fintech startups that rely on stablecoins like USDC or USDT, Rise provides a secure and compliant channel for contractor payments.

It combines financial flexibility with compliance assurance, making it an ideal fit for modern businesses operating at the intersection of crypto and regulation.

Related: Stablecoin Payroll

Rapidly Scaling Teams

Startups and fast-growing companies need to move quickly, often onboarding contractors in new markets overnight. But with rapid growth comes heightened legal risk if compliance isn’t managed properly.

Rise offers a turnkey AOR solution that automates onboarding, manages classification, and ensures all paperwork is audit-ready, allowing growing teams to scale with speed and legal peace of mind.

Benefits of Rise’s AOR Service

Legal and Compliance Protection

Contractor misclassification is a legal minefield with serious financial consequences. Rise mitigates this risk by assuming legal responsibility for contractor engagement and ensuring all documentation meets local standards.

With Rise as the intermediary, companies can confidently scale across borders without worrying about audits, penalties, or disputes.

Seamless Contractor Experience

A positive contractor experience leads to better relationships and longer engagements.

Rise provides a clear, structured onboarding flow, fast payments, and contract transparency that make working with your company frictionless. Contractors get peace of mind knowing their payments and paperwork are being handled correctly.

Operational Efficiency

Managing international contractors involves numerous administrative tasks that can slow down HR and legal teams. Rise centralizes everything from contracts, classification, tax forms, and support, into one dashboard. This allows businesses to focus on operations while knowing compliance is fully taken care of.

Transparent Pricing

Budgeting for compliance can be tricky when costs are unpredictable.

Rise simplifies this with a flat-rate model of $400 per contractor per month, covering everything from onboarding to tax filings. Companies can scale without worrying about hidden charges, extra compliance costs, or third-party surprises.

Conclusion: Is Rise the Best AOR Service in 2025?

Rise stands out in a crowded market by combining compliance, global reach, and flexible payment solutions. Whether you’re a growing startup, an enterprise, or a Web3-native team, Rise offers a clear path to compliant contractor engagement.

With coverage in over 190 countries and support for crypto payouts, it’s the most future-ready AOR option available.

If you want to protect your company, streamline your operations, and give contractors the best possible experience, Rise is the best solution for 2025.

Ready to protect your company and pay contractors the smart way? Book a demo with Rise

Frequently Asked Questions (FAQ)

What is the difference between EOR and AOR?

EOR stands for Employer of Record and is used for hiring full-time employees. AOR, or Agent of Record, is for managing independent contractors while minimizing compliance risk.

How much does Rise’s AOR service cost?

The service costs $400 per contractor per month. This includes classification checks, tax reporting, onboarding, and legal representation.

Can I pay contractors in crypto?

Yes. Rise supports funding in USDC and USDT and allows contractors to withdraw in both fiat and crypto.

Is Rise AOR compliant with local labor laws?

Absolutely. Rise conducts classification checks and works with local legal experts to stay compliant across 190+ jurisdictions.

Who owns the contractor relationship?

Rise becomes the legal agent, but the day-to-day working relationship, project guidance, and communication remain under your control.

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