U.S. Expansion
EOR vs U.S. Entity: When Should You Switch?
The signals that tell you an employer of record has stopped being the cheap option, and what setting up a U.S. entity actually requires of your People function.
6 min read
The switching signals
Most companies switch late. These are the signals we look for:
- EOR fees exceed the fully loaded cost of an entity plus payroll and benefits administration.
- You want to grant equity on terms the EOR can't accommodate.
- Benefits quality is costing you candidates.
- You have employees in five or more states and the EOR's policy set no longer fits.
- U.S. employees feel structurally separate from the rest of the company.
What an entity actually adds to your workload
Registration in each state where you employ, payroll tax accounts, a benefits broker and renewal cycle, workers' compensation, a handbook, and ongoing employee relations. None of it is difficult. All of it needs an owner.
That owner does not have to be a full-time U.S. HR hire — that's the gap a managed U.S. People function fills.
Next step
This is the kind of problem we build, operate and lead through with clients.
Talk to a U.S. People Expert