Agent of Record (AOR)
Helping enterprises build a flexible, compliant workforce at a lower cost
Simplify how you engage independent contractors
With our Agent of Record (AOR) service, MBO handles compliant onboarding and payment of independent contractors you engage. This includes worker classification, contract management, invoicing and payroll, and continual compliance.
Key benefits
MBO's full-service AOR solution includes administrative management of your independent contractors and continual compliance at a lower cost than EOR services.
Proper contractor classification
Our combination of enhanced technology and staff expertise ensures proper classification of every independent contractor you engage. Using an efficient assessment process, MBO determines the status of new and incumbent talent to properly classify them for project work.
Background checks and screening
MBO conducts background checks and drug screening based on your requirements. You'll also have the option of using our Anti-Impersonation Service, which verifies the identity of your contractors to prevent fraud.
One invoice and remittance for accounts payable
Easily consolidate your accounts payable process through our platform. By receiving one invoice for all independent contractors, your financial management process is streamlined and your administrative overhead is reduced.
Risk management
MBO ensures that your independent contractors are properly classified so your business is protected. We also build an audit defense file for our determinations so that your engagements are securely documented, tracked, and stored.
Contract management
MBO prepares and manages contracts associated with your independent contractors, ensuring they meet compliance and classification requirements. This protects both the talent and your company from misclassification risk.
Efficient and secure onboarding
Our expert staff provide white-glove support to your talent through every step of the onboarding process. We ensure that your independent contractors are properly classified and meet your requirements so they can get to work quickly.
AOR vs EOR: Key Differences
AOR and EOR solutions can help your business in different ways.
Below is a breakdown of when to use each and the advantages.
| Agent of Record | Employer of Record |
|---|---|
| Independent contractors | Full-time and part-time payrolled workers |
| Compliant onboarding and payment including classification, contracts, invoicing, and ongoing compliance |
Hiring, invoicing, and payment, including tax deductions, compliance, and benefits administration |
| Less expensive that EOR due to fewer responsibilities | Higher cost as EORs have more responsibilities and act as the legal employer |
| Best for managing short-term projects with independent contractors |
Best for companies who use payrolled workers for long-term employment |
| Companies who have fluctuating volumes of work and want to engage contractors quickly without hiring a full-time employee |
Companies looking to expand their business in areas or new markets where they do not have a presence but need employees |
| Companies wanting administrative support for managing contractor engagement |
Companies wanting a partner to assume legal and financial liability for their workers |
| Provides compliance but employers retain a higher level of accountability |
Ensures 100% compliance with labor laws, tax and hiring regulations, and more |
| An AOR provider handles essential but non-revenue administrative tasks, including time tracking, invoicing, and onboarding, and more |
An EOR provider eliminates the cost and effort of establishing legal entities for employee presence, domestically and internationally |
| Workforce flexibility, cost savings, and compliance | Reduced risk, organizational efficiency, business expansion and control |
Worker type
Functions
Cost
When to use
Business goals
Ideal for
Compliance
Advantages
Benefits
Why work with MBO
Compliant, flexible hiring to scale your workforce
While compliance and service are at the core of everything we do, MBO stands out as a provider by offering flexible engagement options that are better for you and your talent. Through our personalized compliance process, more talent are properly classified for our AOR solution, which gives you more flexibility and saves you money.
Our AOR service is a great option for engaging fully self-employed independent contractors. However, our Business Services option enables contractors who don't want to be payrolled workers but aren't yet fully established as an independent business to still work with you, at a much lower cost. Working with more independent contractors gives you the freedom to adjust resources to business needs and create a more scalable workforce.
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Issue resolution
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Onboarding
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Time entry
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Escalations
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Payment processing
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Issue resolution
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Onboarding
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Time entry
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Escalations
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Payment processing
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White glove support
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Expense processing
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Expense reimbursement
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Contract preparation
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Classification
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White glove support
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Expense processing
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Expense reimbursement
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Contract preparation
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Classification
Work compliantly with the widest variety of talent
In addition to offering EOR and AOR services, MBO is the only provider offering Business Services, a unique engagement alternative.
Flexible options, cost savings
60% of our talent are in a lower-cost combination of AOR and Business Services, compared to others who have up to 90% in EOR*.
Choose MBO to engage talent in a way that reduces costs and keeps you compliant.
Source: Employer of Record and Independent Contractor Evaluation and Compliance Landscape Summary 2023, Staffing Industry Analysts
Midmarket Professional Services Firm Saves $2.1 Million With MBO’s Scalable Talent Solutions
#1 in client and talent satisfaction
75%
of MBO Enterprise clients have
been working with us for 5+ years
of MBO Enterprise clients have
been working with us for 5+ years
51%
of MBO Enterprise clients have
been working with us for 10+ years
Agent of Record (AOR) FAQs
01 What is an Agent of Record (AOR)?
An Agent of Record (AOR) is a compliance partner that handles the administrative and legal responsibilities associated with engaging independent contractors. This includes classification, contracts, payments, tax handling, and ongoing compliance, allowing your organization to access and manage contractor talent while you retain strategic control.
02 How does AOR differ from an Employer of Record (EOR)?
Unlike an EOR which becomes the legal employer of payrolled workers, an AOR supports independent contractors without creating an employer-employee relationship. An AOR ensures compliance, handles invoicing and payments, and mitigates classification risk, while an EOR manages payroll taxes, benefits, and employer regulatory obligations.
03 When should an enterprise choose an AOR solution?
An AOR is ideal when your organization engages independent contractors, especially for project-based, seasonal, or specialized work, and wants to avoid misclassification risk, administrative complexity, and compliance gaps across regions or legal regimes.
04 Can an AOR help with international contractor engagements?
Yes. AOR providers with global capabilities help navigate diverse legal and regulatory environments, support payments in multiple currencies, and ensure compliance with jurisdiction-specific rules — enabling enterprises to build a distributed contractor workforce without needing local entities.
05 How does working with an AOR reduce risk for my business?
An AOR partner ensures contractors are properly classified and compliant with applicable laws (such as IRS guidelines, state rules like California’s AB5, or international classification standards). This lowers the risk of audits, penalties, back taxes, and other liabilities associated with misclassification or improper documentation.
06 How does AOR differ from an Employer of Record (EOR)?
By partnering with an AOR, enterprises can:
• Scale contractor teams faster and more efficiently.
• Reduce administrative overhead tied to contractor management.
• Improve contractor experience with reliable payment and onboarding processes.
• Maintain consistent compliance as rules and laws evolve.
07 How is AOR pricing structured?
AOR pricing typically reflects the scope of administrative and compliance services offered — including contractor onboarding, classification assessments, invoicing, payments, and reporting. Transparent providers break out fees so enterprises can budget accurately and understand cost drivers.
08 How do we choose the right AOR provider?
When evaluating AOR partners, enterprises should look for:
• Deep compliance expertise across jurisdictions.
• Strong payment and invoicing systems with multi-currency support.
• Transparent pricing and service structures.
• Intuitive technology and reliable reporting.
• Responsive support and industry experience relevant to your business.
Learn how to simplify hiring independent contractors