Global teams need legally clean hiring from the start. Employer-of-Record (EOR) services let you onboard fast without forming entities. Local entities offer deeper control and benefits flexibility. The right choice depends on timeline, headcount, and market strategy. EOR shines for pilots, contractors converting to employees, and small country footprints. You gain speed but accept standardized policies and fees. Compliance risk sits with the provider, which reduces administrative load. It is ideal when testing demand. Local entities make sense for meaningful revenue or strategic markets. You can tailor benefits, equity, and culture locally. Banking and government relations also improve. The trade-off is setup time and ongoing filings. Hybrid models are common in 2026. Start with EOR to validate traction, then transition to entities as teams grow. Plan migrations to minimize payroll disruption and equity tax surprises. Communicate clearly with employees throughout. Budget both direct and indirect costs in your decision. Factor in HR tools, legal fees, and internal admin time. Consider manager bandwidth and policy consistency. A deliberate approach keeps your team compliant and motivated.