AOR vs CoR vs EOR

What’s the Difference Between AOR, CoR, and EOR?

When hiring international talent, companies often face a tough question: What type of service do I actually need?

• Do you want to hire full-time employees abroad?

• Or pay independent contractors across borders?

• Or stay in control while outsourcing compliance?

This is where EOR, CoR, and AOR come into play. They’re often confused - but they solve very different problems.

Real Use Case Examples

• A U.S. startup hires a full-time engineer in Argentina → uses an EOR to issue a compliant employment contract and handle taxes.

• A design agency wants to pay a video editor in Brazil → uses a CoR to handle contracts and classification for a freelancer.

• A marketing firm has contractors in Colombia and Kenya but wants to manage relationships directly → uses an AOR for compliance support while staying the legal payer.

How to Choose: EOR vs CoR vs AOR

Still not sure? Many companies start with AOR or CoR for flexibility, then shift to EOR if they scale into employee relationships.

Why It Matters

Choosing the wrong model can lead to:

• ❌ Worker misclassification fines

• ❌ “Permanent establishment” tax exposure

• ❌ Delays in onboarding or blocked payments

SigmaRemote offers all three options, helping you grow your team globally - without the legal or operational friction.

Related Glossary Terms

• Employer of Record (EOR)

• Contractor of Record (CoR)

• Agent of Record (AOR)

• Cross-Border Compliance

• Contractor Classification

Explore More

📘 [Avoid contractor misclassification →]
📘 [Explore SigmaRemote’s global contractor options →]
📘 [EOR vs Direct Hire: When to make the switch →]