EOR vs PEO vs Direct Hiring

Choose the right global employment solution for your expansion strategy. Compare costs, compliance, speed, and control across all three options.

EOR

Employer of Record

Fastest way to hire globally without establishing a legal entity. The EOR becomes the legal employer while you maintain day-to-day control.

Best for: Testing new markets, small teams (1-10 employees)

Setup time: 1-2 weeks

Monthly cost: $500-2000 per employee

Professional Employer Org

Co-employment model where you share employer responsibilities with the PEO. Requires local entity but provides HR support.

Best for: Medium teams with local entity (10-100 employees)

Setup time: 4-8 weeks

Monthly cost: $150-500 per employee

Own Entity

Establish your own legal entity and hire employees directly. Full control but requires significant investment and compliance expertise.

Best for: Large, permanent teams (100+ employees)

Setup time: 3-6 months

Setup cost: $15,000-50,000+

Feature	EOR	PEO	Direct Hire
Legal Entity Required	No entity needed	Local entity required	Must establish entity
Time to First Hire	1-2 weeks	4-8 weeks	3-6 months
Compliance Risk	Provider handles	Shared responsibility	Full responsibility
Cost per Employee	$500-2000/month	$150-500/month	Lowest ongoing cost
Scalability	Highly scalable	Moderate scalability	Complex to scale
Control & Flexibility	Limited control	Shared control	Full control

Get a personalized recommendation based on your expansion goals and team size.