Can an offshore company registered as a US LLC be sued by international contractors?

Yes. A US-registered LLC is a domestic legal entity subject to US federal law and the laws of its state of registration, regardless of where its founders or operators are located. A contractor based in France, Indonesia, or any other country can file claims in US courts in the jurisdiction where the LLC is registered. Geographic distance provides no legal immunity to a US-registered entity.

What is worker misclassification under US federal law?

Worker misclassification occurs when a company labels a worker as an independent contractor while the actual working relationship meets the legal definition of employment. The IRS applies a behavioral control test: if the company dictates how work is performed — not just the result — the worker is classified as an employee by law, regardless of what the contract states. Misclassification exposes the company to back taxes, state penalties, and civil liability across all affected workers.

What is the ABC Test and how does it apply to New Mexico LLCs?

The ABC Test is the worker classification standard enforced by the New Mexico Department of Workforce Solutions (DWS). Under this test, a worker is presumed to be an employee unless the company can affirmatively prove three conditions: (A) the worker is free from the company's control and direction; (B) the work performed is outside the company's usual course of business; and (C) the worker is engaged in an independently established trade or business. The use of HR tracking software, real-time task monitoring, and direct management feedback eliminates the possibility of satisfying condition (A).

What happens to intellectual property rights when invoices are unpaid?

Under US copyright law, intellectual property created by a contractor belongs to the creator by default. Transfer of ownership to the client requires both a written agreement and full payment. When invoices are left unpaid, the IP transfer is legally incomplete. The creator retains all rights. Any commercial use of the content by the company constitutes copyright infringement, enforceable through platform DMCA mechanisms and federal court.

What are the risks of filing a DMCA counter-notification?

A DMCA counter-notification is a formal legal declaration filed under penalty of perjury. If the underlying copyright claim is valid, it exposes the filer to perjury liability and opens eligibility for statutory damages of up to $150,000 per willful infringement plus mandatory attorney fee recovery for the claimant.

Can the New Mexico Department of Workforce Solutions audit a foreign-managed LLC?

Yes. The DWS has authority to investigate any company with a registered entity in New Mexico. A formal misclassification complaint triggers an administrative audit covering all contractors engaged under similar conditions. This mechanism operates independently of civil litigation.

Is publishing a factual account of a contract dispute legal in the United States?

Yes. The First Amendment and the legal doctrine of fair comment protect the publication of truthful, factual accounts of business disputes. Defamation requires that the statements be false. A documented factual record — unpaid invoices, breached notice clauses, IP used without payment — is not defamatory provided every claim is supported by documentation.

What is the difference between a DMCA takedown and a copyright registration filing?

A DMCA takedown removes infringing content from digital platforms without court involvement, within days. A US Copyright Office registration unlocks statutory damages up to $150,000 per willful infringement in federal court. The two are complementary: the takedown disrupts revenue immediately; registration enables maximum financial recovery.

Blog AI Strategy by Asymmetriq and Rémy Bigot

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