How do you movefrom an EOR in Arizona.
Teamed migrates your Arizona employees from an EOR into your own entity, transferring contracts, payroll, and benefits without disrupting work.
At a glance
Arizona entity basics
Arizona charges a formation fee of $50 to register a new entity with the Corporation Commission. Once operating, the state taxes corporate income at a flat 4.9% and applies a minimum franchise tax of $50 on a flat basis.
- Corporate income tax
- 4.9%
- Minimum franchise tax
- $50
- Franchise tax basis
- flat
- Formation / registration fee
- $50
The transition
How the move works in practice
Teamed acts as the bridge between your EOR arrangement and your own Arizona entity. We handle the paperwork, transfer employment agreements to the new entity, and coordinate the payroll cutover so nothing falls through the gap.
Legally, the EOR steps back as employer and your new entity steps in. Your staff keep their roles, pay, and benefits, they simply now report to an employer you control directly.
Formation and tax basics
What forming an entity in Arizona costs
The Arizona Corporation Commission charges a formation fee of $50 to register a new entity in the state. That's the baseline cost of getting your entity on the books.
Once your entity is operating, Arizona taxes corporate income at a flat 4.9% under Arizona Revised Statutes 43-1111. The state also applies a minimum franchise tax of $50, calculated on a flat basis regardless of your company's size.
Timing the move
Deciding when to switch
There's no fixed headcount that tells you it's time to move off an EOR. It depends on your salary base, how fast your Arizona team is growing, and how long you intend to stay in the state.
Run your specific numbers through the crossover calculator before committing either way. It's a faster, clearer route than guessing at a threshold that doesn't really exist.
Before you commit
Sometimes an employer of record is the better fit
An employer of record remains the smarter choice for a small or still-changing Arizona team, or when you're still testing the market before committing to a permanent presence. Talk to a member of the team to see where you actually stand, or run the numbers through the crossover calculator first.
Contractors, employer of record and your own entity all run on one platform at Teamed, so moving between them later does not mean changing provider or re-onboarding anybody. Real HR and legal experts handle the work rather than a ticket queue.
Talk to a member of the team and we will tell you plainly which one suits where you are. If you would rather look at the numbers yourself first, the crossover calculator models it on local salaries and employer costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.
Global Entity and Employment Operations, which we call GEMO, is how Teamed forms your company, registers it for tax and payroll, runs it month to month and keeps its filings current, across 100+ countries. You stay the employer. We do the work behind it.
In Arizona, that means we handle the Corporation Commission filing, line up your new entity against the state's 4.9% corporate income tax and $50 minimum franchise tax, and move your employees' contracts across without a gap in pay or benefits.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Questions about moving from an EOR in Arizona
How much does it cost to form a company in Arizona?
The Arizona Corporation Commission charges a formation fee of $50 to register a new entity. Beyond that, budget for the state's corporate income tax and minimum franchise tax once you're operating.
What tax rate will my new Arizona entity pay?
Arizona taxes corporate income at a flat 4.9% rate under Arizona Revised Statutes 43-1111. There's also a minimum franchise tax of $50, applied on a flat basis regardless of company size.
When should we move from an EOR to our own entity in Arizona?
It depends on your salary base and how long you plan to keep staff in the state, not a fixed headcount. Run your numbers through the crossover calculator, or talk to a member of the team for a straight answer.
Will our employees notice the switch from EOR to our own entity?
Not if it's handled correctly. Teamed transfers employment contracts, payroll, and benefits so pay dates and coverage don't interrupt during the changeover.
Does Teamed handle the Arizona formation paperwork?
Yes. Teamed sets up the entity with the Arizona Corporation Commission, migrates your employees into it, and hands you a fully operational entity, ready to run.
Where these figures come from
Sources
These figures come from the Arizona Revised Statutes 43-1111 and the Arizona Corporation Commission fee schedule.
Looking for a job in Moving From Eor To Your Own Entity yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.