# What is eor?

Source: https://launch-rec.com/glossary/eor. Category: Compliance. Market: US and UK.

Also called: employer of record.

## Definition

An employer of record legally employs a worker on your behalf in a jurisdiction where you have no entity, handling payroll, tax and compliance.

## In practice

For a UK agency making its first US placements, an EOR is the fastest legal route to payroll in a new state without forming an entity or registering for state taxes.

It costs more per head than running your own entity, so it is an entry mechanism: use it to prove demand, then form the entity once volume justifies it.

## Related terms

- https://launch-rec.com/glossary/peo
- https://launch-rec.com/glossary/worker-classification
- https://launch-rec.com/glossary/state-registration