--- title: "Moving From an EOR to Your Own Entity in Arizona" description: "How Teamed moves your Arizona team from an EOR to your own entity, with formation costs, tax rates, and timing guidance." canonical: https://www.teamed.global/country-hiring-guides/united-states/arizona/moving-from-eor-to-your-own-entity --- ![Arizona business district.](/cluster-assets/country-hiring-guides/united-states/arizona/moving-from-eor-to-your-own-entity/images/hero.webp) # 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. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Arizona guide 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 tax4.9% Minimum franchise tax$50 Franchise tax basisflat 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. Talk to a member of the team Model the crossover for the United States 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. Entity Management (GEMO) The Graduation Model Employer cost calculator > They set up our EU entity and moved hires across without missing a payroll. *Helene Dubois, COO* Talk to an expert about Arizona 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. ## More on entities in Arizona - [Hiring in Arizona, overview](/country-hiring-guides/united-states/arizona)parent - [Arizona setting up](/country-hiring-guides/united-states/arizona/entity-setup)sibling - [Arizona running costs](/country-hiring-guides/united-states/arizona/entity-running-costs-and-filings)sibling - [Arizona tax presence](/country-hiring-guides/united-states/arizona/permanent-establishment-risk)sibling - [Arizona entity or eor](/country-hiring-guides/united-states/arizona/eor-vs-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about Arizona](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA