Comparison
EOR vs Own Entity
Below roughly ten employees in a country the EOR nearly always wins. Above that, run the break-even and factor in how permanent the market commitment really is.
Option A
Employer of record
In favour
- Hire within days, not months
- No local incorporation or filings
- Easy to exit the market
- Compliance handled by the provider
Against
- Per-employee fee every month
- Less control over benefits and contracts
- Costs scale linearly with headcount
vs
Option B
Own legal entity
In favour
- Lower marginal cost at scale
- Full control of employment terms
- Required for some local contracts and licences
Against
- Months to establish and significant setup cost
- Ongoing accounting, payroll and filing obligations
- Slow and expensive to unwind
Settle it
Global EOR Cost Calculator
EOR = payroll + fee × headcount × months · entity = payroll + setup + running cost
Estimates, not advice. Every figure here is produced from the inputs you enter and the formula printed on the page. Rules differ by state, carrier, lender and contract, so use these numbers to prepare for a conversation with a qualified professional rather than to replace one. See our full disclaimer.