When you hire someone in Georgia without a local company, you have two main options: work with them as an independent contractor on a B2B agreement, or use an Employer of Record (EOR). Both are legitimate — they just suit different situations.
How the B2B contractor model works
The professional registers as an Individual Entrepreneur in Georgia, signs a services agreement with your company, and invoices you — usually monthly. They handle their own taxes and filings. Many eligible contractors use Small Business Status, which taxes turnover at 1% up to GEL 500,000 (approx. USD 190,000) a year.
How the EOR model works
An EOR provider becomes the legal employer in Georgia. It runs payroll, withholds taxes and handles employment obligations, while the person works for you day to day. You pay the salary plus a monthly fee per employee to the EOR.
Side-by-side comparison
| B2B contractor | Employer of Record | |
|---|---|---|
| Legal relationship | Services agreement between two businesses | Employment, through the EOR |
| Who handles taxes | The contractor | The EOR, through payroll |
| Ongoing fee | None beyond the contractor’s rate | Monthly fee per employee |
| Control over how work is done | Limited — defined services and deliverables | Similar to a regular employee |
| Best for | Project-based or independent remote work | Long-term roles that function like employment |
When a contractor makes sense
- The work can be defined as services or deliverables.
- The professional has flexibility in how and when they work.
- You want a lean setup without monthly EOR fees.
When an EOR is the better fit
- You need close control over working hours and methods, like a regular employee.
- The person is fully integrated into your organisation for the long term.
- Your legal advisers flag classification risks for a contractor arrangement.
A word on classification
Calling an arrangement “B2B” doesn’t decide its legal nature on its own. Authorities may look at how the relationship works in practice, including control, integration and economic dependence — and the law of your own country matters too. A B2B setup does not eliminate employment, tax or social security risks, so it’s worth getting legal advice before you choose.
Where HirePoint fits
HirePoint is not an EOR. We recruit and screen professionals in Georgia, and if you work with them as contractors, we support them with free registration and accounting help. If an EOR is the right model for you, we’ll tell you honestly.
Frequently asked questions
Is a B2B contractor cheaper than an EOR?
Usually, because there is no monthly EOR fee. But the right choice depends on how you want to work with the person, and on the classification rules that apply to you.
Can I switch from a contractor to an EOR later?
Yes. Many companies start with a contractor and move to an EOR or their own entity if the relationship becomes more like employment or the team grows.
Is HirePoint an Employer of Record?
No. HirePoint is a recruitment and team support company. We help you find professionals and support them as contractors, but we don’t employ them.
This article is general information, not legal or tax advice. Rules change, and eligibility depends on individual circumstances. Amounts in US dollars are approximate (1 GEL ≈ 0.38 USD, October 2026). See our Recruitment Services Disclaimer.
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HirePoint finds and screens professionals in Georgia, and every professional we place gets free help with contractor registration and accounting.
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