Knowledge Leadership weConnect

PEO or Entity?

A big part of global expansion is hiring on-the-ground talent. The best way to do this is often greatly misunderstood. To keep things simple for now, there are basically two options. One option is through an Employer of Record solution (also called “International PEO”). A second option is through the establishment of a local entity to payroll talent.

While both can work, the use cases for these options are often misunderstood and the costs and benefits vary greatly depending on your specific situation, target country and business objectives.

We introduce both options to you via a high-level comparison table below. If you are interested to discuss in greater detail about your specific situation, please click one of the three buttons below to BOOK A MEETING with one of our global expansion experts so they can share their decades of experience helping companies just like you.

  Employer of Record (PEO) Entity
Hiring Speed Fast
(typically 2 weeks)
(depends on the country, 1 to 6 months)
Can invoice clients locally No Yes
Local Brand Strength Low High
Market Commitment Very Low High
Recruiting top talent is Hard Easy
Cost Low to Extremely High
(Depends on Number of Employees)
Compliance Burden Low Medium to High
(depending on country)
Open a local bank account Low Yes
Control over your employees Less Control More Control
Control over Your Local business Low High

Depending on your business goals, one of these options may make more sense than the other. To explore your goals and which option may fit, get in touch with us today.

Discuss the pros and cons of Employer of Record
vs. Entity with Derek Begue, weConnect’s USA Director
Meet Derek, weConnect’s USA Director