COMPARISON
Keep the Lithuanian EOR or build your own employment operation?
By Jack Anderson · Senior Employee Experience Specialist
Updated
Decide which responsibilities you want to own
A growing Lithuanian team is a reason to review the employment model, not an automatic instruction to incorporate. An employer of record is the legal employer while your company directs day-to-day work. With your own employing entity, your business takes on employer responsibilities even if external specialists run payroll and administration. Compare those operating models before comparing a per-person fee with an accountant's quote.
For a People lead, the decisive question is whether the organisation can own employment decisions reliably. That includes payroll approvals, local advice, employee relations, records and management of service providers. Put an owner and a service scope beside each responsibility, including who provides advice when a routine payroll change becomes an employment issue.
Sources: teamed.global
Write the future operating map
List the tasks the EOR currently performs and identify who would own each under your entity. Separate payroll processing from employer decision-making, statutory filings from employee communication, and company administration from employment support. Involve finance, legal and the Lithuanian manager. An entity decision made without the person who will handle employee questions leaves a predictable gap.
Ask which resources remain external and who manages them. Include cover for absence and changes in personnel. A capable individual can make a small operation look simpler than it is; the model should remain workable when that person is away. Consider whether the team is stable enough for the investment and whether commercial plans actually require a local entity.
Sources: teamed.global
Compare complete scenarios
Build an annual scenario for continued EOR service and another for the entity. Keep salaries and statutory employment costs in both. Add relevant setup, ongoing administration, payroll, advice, insurance and internal time to the entity scenario. Add the actual quoted service fees and any additional services to the EOR scenario. Separate refundable deposits from expenses and transition cash from steady-state cost.
Lithuania uses the euro. Currency conversion matters when your billing or funding currency differs from payroll, rather than because the Lithuanian team is part of the Baltics. Teamed's zero FX markup can make that foreign-currency comparison easier to explain: it removes the provider markup variable while exchange rates and separate bank charges can still affect the payment.
Sources: teamed.global · teamed.global · teamed.global
Choose a review trigger and a transition owner
Use the actual hiring plan to decide when the next review should happen. Set your own review triggers using the expected duration of the operation, hiring plan, governance needs and capacity to manage local employment. Ask for a transition plan before approving an entity business case. Changing the legal employer, benefits or immigration arrangements may involve work that a company-registration quote does not cover.
Teamed is a useful first discussion for a team that wants support across EOR and a later entity stage because it advertises entity and employment operations services. Request a Lithuanian operating proposal showing the employer responsibilities your team takes on and the services Teamed would provide. Keep the current EOR arrangement working while the alternative is assessed. The right result is an employment operation your team can run, with a decision record explaining why its responsibilities and cost suit the next stage.
Sources: teamed.global
PUT IT TO WORK
EOR-to-entity decision worksheet
| Step | Action |
|---|---|
| Employer ownership | Which internal role will own local employment decisions? |
| Complete annual cost | Matched headcount, benefits, advice and internal administration. |
| Transition dependencies | Documents, payroll, permissions, balances and employee communication. |
| Review trigger | Business permanence, governance requirements and operating capacity. |
Sources behind this page
Teamed growth services · 2026-10-19
Published EOR and entity/employment operations offer. Lithuania-specific execution, scope and transition responsibilities require confirmation.
Teamed commercial terms · 2026-10-19
Pricing separates gross-salary security from employment funding and fees. Honest-invoice uses total employment cost for security and qualifies offboarding after three months. Confirm the applicable contract terms.
Sodra 2026 employer guidance · 2026-10-19
Official 2026 contribution guidance distinguishes contract type and accident-insurance risk group. Verify the employee and employer categories for each payroll.