When does EOR stop being the right structure?

Find the exact month an owned entity becomes cheaper than EOR. Modelled on Crossover Economics, the data layer behind the Graduation Model we've applied advising over 1,000 companies across 187+ countries.

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How it works

1

Tell us where you're hiring

Select your country and enter your current and planned headcount.

2

We model the Crossover Economics

EOR cost against entity cost over 36 months, using real setup and ongoing costs by country.

3

See your Crossover Point

The exact month, the three-year savings, and a Crossover Memo you can take to your board.

See your Crossover Point in 2 minutes

Country-specific data, three-year economics, and a Crossover Memo you can share.

Calculate your Crossover Point

What is the EOR to entity Crossover Point?

The Crossover Point is the month where running your own legal entity becomes cheaper than staying on an Employer of Record. Before it, EOR is usually the right structure. You avoid setup costs, payroll infrastructure, and compliance overhead. Past it, the fixed costs of an entity spread across enough employees that in-house employment pulls ahead. Most companies never calculate this number. They stay on EOR long past the point where it serves them, or rush into entity setup before the maths supports it.

Why the Graduation Model matters

Contractor, EOR, owned entity. That's the Graduation Model we've watched companies move through. Knowing your Crossover Point lets you plan the move instead of reacting to it. Start too late and you overpay for months. Start too early and you tie up management attention before the savings land. The calculator gives you the target month so you can work backwards.

How country complexity tiers affect the decision

Not every country is the same. Straightforward markets have earlier Crossover Points and simpler setups. Complex markets push the Crossover Point out and often mean EOR stays the right structure for longer. Operating in the local language reduces compliance friction and pulls the threshold down. The calculator applies country-specific data and asks whether your team works in the local language, so the model reflects your actual situation.

What is GEMO?

Country Concentration & Entity Transition Framework (GEMO Framework) is Teamed's strategic model (v2.0, November 2024) for when mid-market companies (about 50–5,000 employees) should move from Employer of Record (EOR) to their own legal entity in each country. Evidence base: advisory work with 1,000+ companies across 70+ countries. Core principle: the optimal transition point varies by country complexity — Tier 1 (low) from 10 employees (native language) or about 13–15 (non-native); Tier 2 (moderate) from 15–20 / 20–30; Tier 3 (high) from 25–35 / 35–50, applying the Language Buffer Rule (add roughly 30–50% to thresholds when your team cannot work from local-language employment and compliance materials).

Global Entity Management Operations (GEMO) is the operating approach where one supplier carries you from initial EOR hiring through advice on when an entity makes sense, executes the transition, then continues payroll and compliance on the entity — so you avoid switching providers at each stage and reduce the fragmentation cost that often runs £50,000–£150,000 per year for multi-country mid-market teams. It covers entity setup, payroll registration, statutory compliance, and governance in one relationship — the practical path off EOR past your Crossover Point without re-onboarding employees or switching vendors.

“It’s a dirty little hidden secret. Tons of people are on EOR when they should be managing their own entity. It’s not in any EOR provider’s interest to move you off the model, so they don’t.”
Tom Price-Daniel, Co-founder and CRO, Teamed

Frequently asked questions

When should I set up my own entity vs stay on EOR?▼

It depends on headcount concentration, trajectory, and commitment. If you have enough employees in one country to pass the Crossover Point inside a reasonable timeframe, typically twelve to twenty-four months, and headcount is growing or stable, an entity usually makes sense. If you're below the threshold or headcount is flat or declining, EOR is usually still the right structure. The calculator shows your exact Crossover Point so you can decide with numbers rather than a guess.

How does EOR vs entity cost comparison work?▼

EOR charges a per-employee fee each month. Entity costs include an upfront setup, plus ongoing payroll, compliance, and local infrastructure. Over 36 months, entity costs are front-loaded. EOR costs accumulate linearly. The Crossover Point is where cumulative entity cost falls below cumulative EOR cost. The model uses real setup estimates and ongoing costs for each country covered.

How many employees before I should consider my own entity?▼

It varies by GEMO country tier: Tier 1 (low complexity) typically from 10 employees in the local language, or about 13–15 if not; Tier 2 from 15–20 / 20–30; Tier 3 from 25–35 / 35–50 with the Language Buffer Rule for non-native operations. This calculator applies those thresholds per country and combines them with your 3-year EOR vs entity economics.

What is GEMO and why does it matter?▼

GEMO is Global Entity Management Operations: one supplier manages global employment from EOR through entity transition to ongoing entity payroll and compliance. For mid-market companies in several countries, that avoids juggling separate EOR, formation, payroll, and advisory firms — which Teamed observes can cost tens to low hundreds of thousands per year in coordination alone.

Stop guessing when to graduate off EOR

The Crossover Point gives you the target month. Two minutes, no signup until you want the memo.

Calculate your Crossover Point