Navigating Contractor vs Employee Issues in Remote Development Teams

I'm running a startup in the U.S. and I'm seeking some advice on managing remote development teams, particularly when hiring developers from India. At the start, we quickly brought on a couple of engineers as contractors, which allowed us to scale fast without the hassle of local setups. As time passed, these contractors became essential team members—they worked full-time, participated in daily standups, followed our sprint cycles, and fully integrated into our internal tools, similar to full-time employees. However, we've encountered a potential issue during our legal review for fundraising. Despite being classified as contractors, their work patterns resemble those of full-time employees, which raises concerns about contractor misclassification. This could lead to implications for taxes, benefits, and compliance. I've read about various international hiring structures, including the Employer of Record (EOR) in India, as a viable option. I'd love to hear how others are structuring their remote teams to avoid these issues down the line.