# Employer of Record vs PEO

An Employer of Record (EOR) becomes the sole legal employer of your team member, on its own entity, so you do not need one. A Professional Employer Organization (PEO) co-employs alongside you, so you must already be incorporated in the country.

- The deciding question: do you have a legal entity where you are hiring? No entity means EOR is the only model that can employ for you.
- Legal employer: the EOR, versus you under a PEO's co-employment arrangement.
- Employment liability: carried by the EOR, versus shared (and in practice mostly yours) under a PEO.
- Time to first hire: 24-48 hours with an EOR, versus however long incorporation takes first.
- Indonesia: Indonesian employment law has no co-employment framework equivalent to the US PEO model, so services marketed as "PEO Indonesia" are functionally an EOR. Ask any vendor whose entity the employment contract sits on.
- Cost: RainTech EOR is USD 300 per employee per month with no entity required; a PEO fee excludes the cost of the entity you must already run.