I'm thinking of switching jobs and join an American LLC company either as a full time employee (while sitting in India) or as an independent contractor. Need to know all regulatory compliance things that need to be taken care of?

My current client that I'm working with right now as part of my job is a registered financial advisor in the US. He and I are planning for months to have me join his RIA (Registered Investment Advisor) LLC firm based in state of Michigan, USA.

The thing that isn't decided yet is - will I be joining as a full time employee of their company or will I be joining as an independent contractor?

I had a lot of trepeditions surrounding joining the company as an independent contractor - whether or not this would count as a full time work experience and what about salary slips and whether or not they have the ability to just terminate my contract immediately and get rid of me leading me with nothing. My client has said that if I join as an independent contractor they would put this in the contract that I'll recieve regular salary slips from his company, they'll give a proper experience letter with no mention of any contractual experience but it would just be a regular experience letter for an associate position and even though I'll join in as a contractor - they'll put these terms in my contract that if they were to terminate me - they would be providing me with severance package for 2/3 months.

What I want to figure out is - if I would join their company as a full time employee - what kind of things will they have to set up especially from a regulation and compliance standpoint to employ me as a full time employee of their company? Do they have to withhold any taxes for the US government and what about taxes in India? Will that income be taxed as regular income? Are there any deductions etc. that I could claim or any expense that I could show to reduce or mitigate taxes in India? What about EPF contributions?

Right now, my client wants me to do all the research to figure out what it would take for his LLC company to hire me as a full time employee sitting in India. And what it would take if they were to hire me as a full time contractor.

Lastly, what do you guys suggest - should I go for the full time employee route (if that is something his company could do) or should I go with the independent contractor role? Any suggestions would be deeply appreciated...