Expanding your digital marketing agency into new international markets is an exciting but complex step. One of the biggest decisions you’ll face is whether to partner with an Employer of Record (EOR) or to set up a local entity in the target country.
Both options have distinct advantages and challenges, and choosing the right model depends on your agency’s growth goals, budget, and timeline.
In this guide, we’ll break down the differences between EOR and local entity set up to help you make an informed decision that supports your agency’s global expansion.
What Is an Employer of Record (EOR)?
An Employer of Record is a third-party organization that legally hires and manages employees on your behalf in a foreign country. The EOR handles payroll, taxes, compliance with local labor laws, and employee benefits. Meanwhile, your agency retains full control over daily operations and team management.
This model enables agencies to hire remote executive assistants, virtual sales development reps, or digital marketing account managers quickly and compliantly without the need to establish a physical presence.
What Does Setting Up a Local Entity Mean?
Setting up a local entity involves registering a legal business in the foreign market. This means your agency becomes the official employer responsible for all employment, tax, legal, and HR obligations in that country.
While this approach offers full operational control and may be required for long-term, large-scale operations, it also demands significant time, capital, and expertise to navigate complex local regulations.
EOR vs Local Entity: A Side-by-Side Comparison
What Is Involved in Setting Up a Local Entity?
If your agency plans to build a permanent regional office with dozens of employees, setting up a local entity might be the right choice. However, be prepared for a complex process that includes:
- Registering your business with local authorities
- Opening a local bank account
- Hiring legal and tax advisors to ensure compliance
- Establishing HR and payroll systems
- Managing employee benefits and contracts
This process requires a significant investment of time and money, and small to mid-sized agencies may find it challenging to navigate without local expertise.
Why EOR Is a Game-Changer for Growing Marketing Agencies in the US
For fast-growing marketing staffing agencies, speed and flexibility are critical. The EOR model allows you to:
- Hire a virtual assistant for marketing, or hire local seo expert and remote marketing staff quickly, without legal hurdles
- Avoid upfront costs and infrastructure setup in every country
- Ensure full compliance with local labor laws, taxes, and benefits
- Maintain direct control over your team’s daily work and deliverables
- Scale your team based on project demands and global client needs
This makes EOR the ideal solution for agencies working with international clients and managing remote teams across multiple time zones.
When Should You Consider Setting Up a Local Entity?
A local entity setup may be necessary if:
- You plan to open a permanent office and hire 50 or more employees
- You want full control over operations, HR, and branding in the region
- Local laws or industry regulations require a physical presence
- You intend to stay long-term without outsourcing employment
In these cases, the benefits of direct control and compliance may outweigh the higher costs and slower setup.
Which Model Should Your Agency Choose?
If your priority is fast growth, cost efficiency, and hassle-free access to global talent, the EOR model is the clear winner. It lets your agency focus on delivering client results while leaving the complexities of international employment to experts.
Whether you are a marketing recruitment agency or a service-based business, partnering with an EOR saves you both time and money. You gain quick access to skilled professionals like a content and graphic associate, a virtual sales development rep, a media buyer and planner, and even a local SEO expert — all fully compliant and ready to contribute from day one. This flexibility allows your agency to scale smarter without the overhead of setting up international operations.
Frequently Asked Questions
What is the difference between an EOR and a local entity?
An EOR hires employees on your behalf, handling payroll and compliance. A local entity requires setting up a business in the country and managing everything internally, which is costlier and slower for growing marketing agencies.
Why is EOR ideal for marketing agencies?
EORs let marketing agencies quickly hire global talent like virtual sales development reps or content and graphic associates without legal hassle or upfront investment, making it perfect for fast, scalable international growth.
When should I consider setting up a local entity?
If your agency plans to hire 50+ employees, open a physical office, and manage HR directly in a specific country, then setting up a local entity might be more suitable than an EOR model.
Can I still control my remote team if I use an EOR?
Yes. With an EOR, you manage daily tasks, deliverables, and operations. The EOR handles only payroll, compliance, and HR—giving you full control of your team without the legal complexities.
What roles can I hire through RepStack’s EOR model?
You can hire pre-vetted talent such as virtual assistants for marketing, content and graphic associates, local SEO experts, and digital marketing account managers—all with no upfront fees or compliance worries.
Why choose RepStack for your agency’s global hiring?
RepStack offers a no-risk EOR model tailored for marketing agencies—handle hiring faster, avoid legal headaches, and access high-performing, trained professionals ready to deliver results from day one.
Why Choose RepStack’s EOR Model for Your US-Based Marketing Agency?
RepStack offers one of the most flexible and trusted EOR solutions tailored for US marketing agencies. With RepStack:
- You pay nothing until you successfully hire
- There are no hidden fees or upfront investments
- Legal compliance, payroll, and benefits are fully managed for you
- You get access to vetted virtual assistants, sales reps, and remote executive assistants
- Your agency can scale quickly without administrative burdens
Ready to save thousands in hiring costs and scale your agency effortlessly? Book a discovery call with RepStack today and discover how our EOR model can accelerate your global growth.
