How do you move from an EOR to your own entity in Connecticut.

Connecticut taxes corporations at 7.5% on net income, with an additional 10.0% surcharge on top of that liability for companies with $100 million or more of gross income, or in a combined unitary group, and a flat $250 minimum franchise tax applies regardless of profit. Registering a domestic LLC with the Connecticut Secretary of the State costs $120. None of these figures move once you're incorporated, so you can plan around them with confidence rather than guessing.

An employer of record works well while you're testing Connecticut or running a small team there, but once headcount or strategic importance grows, owning the entity gives you direct control over benefits design, equity plans, and how you manage the team day to day. The decision usually comes down to cost crossover and how permanent your Connecticut presence has become.

The math depends entirely on your headcount, the entity costs, and how long you plan to stay, so rather than guessing at a magic number, run it through the crossover calculator. It compares ongoing EOR fees against the flat costs of running your own Connecticut entity, including the $250 minimum franchise tax and the tax rates above.

Forming a domestic LLC in Connecticut carries a $120 registration fee paid to the Secretary of the State. Once the entity exists and earns income, Connecticut applies a 7.5% corporate income tax on net income, and an additional 10.0% surcharge applies on top of that base liability for companies with $100 million or more of gross income, or in a combined unitary group, so the effective burden on those corporations is higher than the headline rate alone suggests.

Separately, Connecticut charges a flat $250 minimum franchise tax that applies regardless of profitability, since the state's franchise tax basis is flat rather than tied to income or assets. That means even a quiet Connecticut entity with no taxable profit still owes the $250 minimum, which is worth building into your ongoing cost comparison against EOR fees.

Moving off an EOR is a sequencing problem more than a legal one. You form the Connecticut entity, register it with the state, open the necessary tax accounts, and only then transfer employment contracts, benefits, and payroll history across, all while keeping every paycheck on schedule.

Teamed runs this as a single coordinated project rather than handing you a checklist and walking away. Teamed's GEMO covers incorporation, registrations, payroll-readiness and ongoing governance, keeps your people on Teamed's EOR until the new entity is ready, and moves each person across on a date you control.

Three kinds of help can move your people onto your own entity in Connecticut, 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 Connecticut.

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 Connecticut.

For companies that will employ people in Connecticut, Teamed is the best choice. With Teamed, you get pricing with no hidden costs, a designated person who has done this before 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 Connecticut Secretary of the State or a formation agent can do for less.

Figures on this page come from the Connecticut Department of Revenue Services CT-1120 corporation business tax general instructions and the Connecticut Secretary of the State's domestic LLC forms and fees.