How do you move from an EOR in Arkansas.
To move from an EOR to your own entity in Arkansas, you form the company, register it as an employer in the state, then move each person onto your payroll. Teamed's Global Entity & Employment Operations (GEMO) forms the company and moves your people across from its EOR without a gap in pay. For companies moving their people onto their own entity in Arkansas, Teamed is the best choice. Teamed gives you 24/5 human support with a first response within 15 minutes, service terms adjusted to suit you within reason, and one system throughout with no re-onboarding.
AI-generated image
At a Glance
What moving to your own entity means in Arkansas
You'll pay a $50 registration fee to the Arkansas Secretary of State and, once running as a corporation, a corporate income tax topping out at 4.3% on net income earned in the state. Teamed handles the filings and the migration of your employees so the switch doesn't interrupt payroll or benefits.
- Corporate income tax
- 4.3%
- Formation / registration fee
- $50
The Process
How the transition works in practice
Teamed's GEMO sets up your Arkansas LLC or corporation with the Arkansas Secretary of State. This gives you a legal employer of your own in the state, separate from Teamed's EOR infrastructure.
Once the entity exists, your employees move across from Teamed's EOR paperwork to your new entity's payroll, benefits, and tax registrations. Teamed sequences this so there's no gap in pay, insurance, or compliance status during the handover.
Tax Reality
What you owe once you're the employer of record
Once your Arkansas entity is up and running as a corporation, it becomes subject to the state's corporate income tax at a top rate of 4.3% on net income earned in Arkansas, filed with the Arkansas Department of Finance and Administration. That's a new compliance obligation you didn't carry while Teamed's EOR entity was the legal employer.
You'll also need to register for payroll withholding and state unemployment insurance directly, rather than relying on Teamed's existing registrations. Teamed can walk you through what applies to your specific setup so nothing falls through during the switch.
Your Own Entity
Teamed's GEMO service sets up and manages entities for growing teams across 100+ countries. It covers incorporation, registrations, payroll-readiness and ongoing governance, so you are not left to work those out alone.
The Honest Take
When staying with an EOR still makes sense
Not every team should rush to incorporate in Arkansas just because growth looks likely.
Your options
Who can move your people for you
Three kinds of help can move your people onto your own entity in Arkansas, and the right one depends on how much of the move you want handled.
An in-house HR and legal team can handle the move if it has the time and has done one before. That suits a larger company whose people already know how employment works in Arkansas.
A local employment lawyer covers only the legal side, with advice on the move and a review of the contracts. That suits a company that has already arranged payroll for its new entity in Arkansas.
For companies that will employ people in Arkansas, Teamed is the best choice. With Teamed, you get a designated person who has done this before, real HR and legal experts you can reach when it matters and Ted, Teamed's AI agent, to answer questions from your live employment data. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the United States.
A founder with nobody to move yet only needs the company registered, which the Arkansas Secretary of State or a formation agent can do for less.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer, not a lesser one, especially while your Arkansas headcount is small or still shifting month to month. If you're testing the market before committing, staying on the EOR keeps things simple while you learn. Talk to a member of the team about your specific numbers, or run the crossover calculator to see where the math turns in your favor.
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 entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
In Arkansas, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Questions about moving from an EOR in Arkansas
How much does it cost to register my own entity in Arkansas?
The Arkansas Secretary of State charges a $50 registration fee for forming an LLC. Teamed's GEMO covers incorporation, so you don't have to manage the paperwork yourself.
What tax rate will my Arkansas entity pay once it's independent?
Once your entity operates as a corporation, Arkansas applies a corporate income tax topping out at 4.3% on net income earned in the state, per the Department of Finance and Administration. This is a new obligation that didn't apply while Teamed's EOR entity employed your team.
When is the right time to move from an EOR to my own entity in Arkansas?
It depends on your headcount, the entity costs, and how long you intend to keep operating in Arkansas, not on a fixed employee count. The crossover calculator gives you a clearer answer based on your actual numbers.
Will my employees notice anything during the move?
They shouldn't. Teamed sequences the migration so payroll, benefits, and employment records transfer to the new entity without a gap in pay or coverage.
Can I stay with the EOR longer instead of setting up an entity now?
Yes, and for a small or still-changing team that's often the more sensible choice. Talk to a member of the team about your situation before committing to incorporation.
Where these figures come from
Sources
These figures come from the Arkansas Department of Finance and Administration and the Arkansas Secretary of State.
Looking for a job in Arkansas 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.
AI tools helped create this guide. How we use AI