We’ve been trying to get clearer on something that probably sits somewhere between tax, HR, and business operations. We plan to start hiring people from different countries, so we’re currently trying to figure out which employment setup makes the most sense. Right now, an EOR seems like the best fit, but I’d really like to hear from people who have experience with this.
So far, we’ve compared hiring contractors or working with an EOR. From what I understand, an EOR seems like it would provide the best experience for both our employees and us. It handles onboarding, payroll, compliance, taxes, and other administrative tasks, saving us time and helping us avoid legal headaches that go hand in hand with expanding internationally.
Contractors’ setup doesn’t seem like the right type for us because we’re looking to hire people for long-term roles rather than short-term projects or freelance work. Setting up a legal entity in every country also feels like a bit more than we need right now, especially since we’re only starting to hire internationally.
I also found this comparison that actually explains the difference between contractors and employees. It was a help for sure, but I would also like to hear your thoughts.
For those of you who’ve been through this, how did you decide? When does it make sense to use EOR?