Is an International PEO Right for Your LATAM Expansion? Here Are 3 Ways to Tell

When organizations begin the process of expanding internationally, many assume that establishing a legal entity in their new market is the only way to effectively establish a presence. While it’s true that this will work and entities offer a number of unique benefits, they’re not the only option for establishing a company in a new territory.

In truth, partnering with an International PEO (Professional Employer Organization) offers far more flexibility than establishing an entity right off the bat, allowing businesses of all sizes the ability to remain agile throughout the expansion process.

However, it’s also true that there is no “one size fits all” approach to global expansion. Therefore, deciding whether establishing an entity is the right move for your business or whether teaming with an International PEO would offer a more applicable alternative requires you to keep a few key things in mind.

International PEO and your Business Expansion Plans?

One of the major factors that will determine which move is right for your business has to do with whether your presence is to be short- or long-term, or if you’re still undecided. Generally speaking, if you establish an entity, you are planning on being in that market for quite some timeThis can be a great option for certain types of businesses, but entity establishment is very much a time commitment—and one that is difficult (and costly) to dissolve should the need ever arise.

If you know that it’s time to expand but are unsure of how your business will fare in your new market, an International PEO is definitely the way to go. This is a perfect opportunity to get out there and “test the waters” of your new target market with no long-term commitment to speak of.

If the situation fails to meet your needs, your International PEO can get you out of the country quickly, compliantly, and at a fraction of the cost that tearing down an entity would require.

Conversely, an International PEO can have you up and operating compliantly within as little as 48 hours—all while saving up to 60% when compared to traditional entity establishment. This is possible because your new partner will utilize its existing in-country infrastructure to speed up the process. They know all the rules and regulations to which your organization must adhere. They can handle everything on your behalf (as they become your employer of record) so that you can focus on running your business.

Your Employees? Will International PEO be the right fit?

Another factor that will determine which avenue is the right one to explore depends on how many employees you plan on hiring. Needless to say, it can be hard for any expanding organization to be sure about how many employees it needs to hire in the early days of the process. For many companies, even getting that first employee up and running is a significant step. For others, it’s the first of several employees. If you’re planning on hiring over 20 employees, establishing an entity may be right for you.

If you’re unsure, however, working with an International PEO can absolutely give you the time (and flexibility) needed to get a better sense of your hiring needs. Likewise, if you want to send an existing employee from your home country into this new foreign market, an International PEO can help make that happen seamlessly and in a matter of days—no entity required.

Expand into Latin America with An Experienced PEO Partner

latin america peo expansion partner

For organizations that need agility and flexibility, partnering with an International PEO is a great option.

It’s a big step when businesses expand into new markets. It’s an even bigger step later on when you add yet another country to that list. If this current move is just one in a long line that you’re planning on making, an International PEO is likely the best option.

Whether you’re expanding into your first or your fifth country, all of the aforementioned benefits apply; an International PEO can help your organization expand its presence. Biz Latin Hub’s reach touches all key Latin American jurisdictions —and it can help you break into any one of these markets.

Entities are an excellent idea if your organization is absolutely certain of its long-term presence, of its employee needs, or if you have the budget to support it. For organizations that need agility and flexibility, however, partnering with an International PEO is absolutely the right move for the right time.

If you’d like to find out more information about whether or not an International PEO is right for your Latin American expansion please contact the Biz Latin Hub team at [email protected]

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