Exactly. If you're outside the US, you can only be a contractor, even if you work full-time for your company. There are no caps on how high a contractor's fee can be - that's not the case with employee salaries.

There are more fancy options, such as having a second, foreign company owned by you be the contractor - if you want to avoid personal income taxes in whatever country you live in. Beware of CFC regulations though.

For US founders, S Corps are better.