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Local Entity vs EOR: Decision Framework
Strategic guide to choosing between establishing local entities or using EOR services for international expansion. Make informed decisions based on your business needs.
16 min read
Kumo Strategy Team
Entity vs EOR Comparison
| Factor | Local Entity | EOR Service | Advantage |
|---|---|---|---|
| Setup Time | 6-18 months | 2-4 weeks | EOR |
| Upfront Costs | $50K - $200K+ | $0 - $5K | EOR |
| Ongoing Costs | Lower per employee | Higher per employee | Entity |
| Control | Full control | Shared control | Entity |
| Compliance Risk | Your responsibility | EOR responsibility | EOR |
| Scalability | High (once established) | Immediate | EOR |
Make the Right Decision
Explore resources to help with your expansion strategy: