EOR vs Entity Cost Estimator
EOR vs Entity Cost Estimator
Should you set up a local subsidiary or stay on an Employer of Record? See the cumulative cost curve for three options — Second Talent EOR ($199/mo flat), a traditional EOR, and your own entity — and find the exact month each one starts to win.
Salary + statutory + entity costs
Engineers in the country
Months of coverage
Cumulative cost over time
Cost curve — three models
When each model starts to win
Entity vs Second Talent EOR
—
Your own entity starts to beat Second Talent EOR around this month.
Entity vs Traditional EOR
—
Your own entity starts to beat a traditional EOR around this month.
Side-by-side cost breakdown
| Line item | Second Talent EOR | Traditional EOR | Own entity |
|---|---|---|---|
| One-time setup | $0 | $0 | $0 |
| Monthly platform fee (per engineer) | $0 | $0 | $0 |
| Monthly entity overhead (team-wide) | $0 | $0 | $0 |
| Salary + statutory (team monthly) | $0 | $0 | $0 |
| Total team monthly | $0 | $0 | $0 |
| Engagement total | $0 | $0 | $0 |
Your winner
—
over the engagement horizon
Savings vs Traditional EOR
$0
over full engagement
Savings vs Entity
$0
over full engagement
Entity payback
—
months to recoup setup
We help companies save $103,000+ per hire
25k USD
Average one-time cost to register a local entity in APAC
10+ eng
Team size where own-entity economics start to make sense
3+ yrs
Horizon where entity setup typically pays back
199 USD
Second Talent flat EOR fee per employee per month
How to read the cost curve
The crossover point where your own entity becomes cheaper than an EOR depends almost entirely on team size and time horizon. Here is how the three lines behave.
Second Talent EOR
Flat $199 per employee per month + base salary + statutory. Zero setup cost, so the line starts at zero and climbs fastest in the early months but slowest of the three after that.
Traditional EOR
Generic EOR platforms (Deel, Oyster, Velocity) charge ~$699 per employee per month. Same zero setup, but the monthly slope is steeper than Second Talent's — so it loses to both the other options over time.
Own entity
Starts with a $15k–40k setup cliff, then climbs at the slowest monthly rate (no per-employee platform fee). Wins once the cumulative savings on platform fees exceed the setup + ongoing overhead.
The crossover month
Where the entity line finally crosses below the EOR line. Depends on team size: small teams never cross (entity overhead eats any savings); large teams cross in the first year.
Setup cost by country
Vietnam + Philippines run ~$15–18k. Thailand, Malaysia, Taiwan ~$20–28k. Singapore, Hong Kong, China run $30–40k because local legal and accounting rates are higher.
Ongoing entity overhead
Monthly accounting, tax filings, local HR admin, compliance officer, and local legal counsel on retainer. Runs $1,500/mo in Vietnam to $4,500/mo in China. Constant whether you have 1 engineer or 20.
If entity wins, here is the playbook
Setting up a local subsidiary is a 3–6 month project. If the cost curve above says entity wins for your team, here is the sequence.
Legal + accounting scoping
Engage local legal and accounting partners. Scope the entity structure (branch vs subsidiary vs WFOE), ownership, and repatriation mechanism. Typically 2–4 weeks.
Entity registration
File the incorporation, register for tax IDs (VAT/GST, corporate income tax, payroll withholding), and secure a local director if required. 4–12 weeks depending on country.
Banking + payroll setup
Open local corporate bank accounts, set up payroll software, enrol statutory funds (pension, social insurance, health). 3–6 weeks; banking is often the longest pole.
Employment contracts
Draft local-law employment contracts, benefits policies, and offer templates. Migrate any existing EOR staff onto entity contracts with correct tenure preservation.
Ongoing compliance
Monthly payroll, tax filings, social insurance deposits. Quarterly VAT returns. Annual audit + corporate tax filing. Factor $1.5–4.5k/month per country into the cost curve above.
EOR vs Entity questions, answered
What is the biggest factor in the crossover calculation?
Why does entity never win at small team sizes?
What does the "one-time setup" actually include?
Can I switch from EOR to entity later?
What risks does an EOR carry that an entity does not?
How long does entity setup actually take?
What this estimator helps you understand
Cumulative cost curve over 36 months for Second Talent EOR, a traditional EOR, and your own local entity
Country-specific entity setup cost ($15k–40k) and monthly maintenance overhead ($1.5k–4.5k)
Exact crossover month where each option starts to beat the others, for your team size and country
Side-by-side cost breakdown so you can brief your finance partner with the right number
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