Full-time employee vs contract developer: which is better for early-stage startups?

A contract developer is usually a better choice for most early-stage startups because they require less commitment, enable quicker onboarding, and offer flexibility to change the scope without legal employment obligations. A full-time employee becomes sensible once the product attains consistent development progress and needs dedicated long-term responsibility. Most pre-seed and seed-stage startups initially engage 1–2 contractors before transitioning to full-time employees.