--- title: "Moving From an EOR to Your Own Entity in Arkansas" description: "How the move from an EOR to your own Arkansas entity works, the state's 4.3% corporate tax, and what Teamed handles for you." canonical: https://www.teamed.global/country-hiring-guides/united-states/arkansas/moving-from-eor-to-your-own-entity --- ![Arkansas business district.](/cluster-assets/country-hiring-guides/united-states/arkansas/moving-from-eor-to-your-own-entity/images/hero.webp) # How do you movefrom an EOR in Arkansas. Teamed sets up your Arkansas LLC or corporation, transfers your employees onto it, and hands you a fully compliant entity, ready to run. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Arkansas guide 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 4.3% corporate income tax 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 tax4.3% Formation / registration fee$50 The Process ## How the transition works in practice Teamed forms your Arkansas LLC or corporation directly with the Arkansas Secretary of State, filing the Articles of Organization or Incorporation and paying the $50 registration fee on your behalf. 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 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 ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Teamed's Global Entity and Employment Operations service, which we call GEMO, builds and migrates entities for growing teams across 100+ countries. Rather than leaving you to figure out incorporation, tax registration, and payroll setup alone, Teamed's team runs the whole build and migration, then hands you a working entity with nothing left half-finished. 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. 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 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 Arkansas specifically, that means Teamed files with the Secretary of State, covers the $50 registration fee, and sets you up to handle the 4.3% corporate income tax correctly from day one, so you're not learning Arkansas compliance rules while also running payroll for the first time. 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 Arkansas 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 files this on your behalf as part of the migration 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 4.3% corporate income tax 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, salary levels, 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. ## More on entities in Arkansas - [Hiring in Arkansas, overview](/country-hiring-guides/united-states/arkansas)parent - [Arkansas setting up](/country-hiring-guides/united-states/arkansas/entity-setup)sibling - [Arkansas running costs](/country-hiring-guides/united-states/arkansas/entity-running-costs-and-filings)sibling - [Arkansas tax presence](/country-hiring-guides/united-states/arkansas/permanent-establishment-risk)sibling - [Arkansas entity or eor](/country-hiring-guides/united-states/arkansas/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 Arkansas](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA