Although they are similar, the key difference between an EOR and a PEO is the entity requirement and shared legal responsibility for employees. Traditionally, PEOs are co-employment arrangements, meaning both the PEO and the client company must have a registered entity in the country where the employees are located—and both organizations share legal responsibility for employees. With an EOR, there is no shared legal responsibility for employees or entity requirement for client companies. An EOR, like Global Employment Outsourcing, is the preferred method for companies looking to onboard international employees quickly and compliantly.