--- title: "Moving from an EOR to Your Own Entity in Connecticut" description: "How to move your Connecticut team off an EOR and onto your own entity, with real state costs and a plan that keeps payroll running." canonical: https://www.teamed.global/country-hiring-guides/united-states/connecticut/moving-from-eor-to-your-own-entity --- ![Connecticut business district.](/cluster-assets/country-hiring-guides/united-states/connecticut/moving-from-eor-to-your-own-entity/images/hero.webp) # How do you move from an EORto your own entity in Connecticut. You form a Connecticut entity, migrate contracts and payroll across, and Teamed keeps everyone paid without a gap. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Connecticut guide At a glance ## Connecticut, in short Connecticut taxes corporations at 7.5% on net income, with an additional 10.0% surcharge on top of that liability for many filers, 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. Corporate income tax7.5% Additional surcharge10.0% Minimum franchise tax$250 Franchise tax basisflat Formation / registration fee$120 Why move ## Why companies outgrow an EOR in Connecticut 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 salaries, your headcount, 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. The Connecticut entity ## What your own Connecticut entity actually costs 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 can apply on top of that base liability, so the effective burden on profitable 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. How it works ## The migration itself 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. We handle the Connecticut filings, keep payroll running under the EOR until the new entity is fully operational, and migrate each employee across on a date you control, not one dictated by paperwork delays. Before you commit ## Sometimes an employer of record is the better fit An employer of record is sometimes the right long-term answer, not just a stepping stone, especially for a small or still-changing Connecticut team or when you're still testing whether the market is worth a permanent footprint. If you're unsure which side of that line you're on, talk to a member of the team first, and run the crossover calculator second to see the numbers for your own headcount and salaries. 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 Connecticut, that means we handle the LLC or corporate filing, the tax registrations tied to the 7.5% corporate income tax and the flat $250 minimum franchise tax, and the payroll cutover, then hand you a fully compliant entity with nothing left half finished. Global Entity and Employment Operations, which we call GEMO, works the same way across 100+ countries, so the same team that moved you into Connecticut can do it again anywhere else you expand. 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 Connecticut Questions ## Common questions about moving off an EOR in Connecticut How much does it cost to register an entity in Connecticut? A domestic LLC registration with the Connecticut Secretary of the State costs $120. That figure covers the formation filing itself, not the ongoing tax obligations that follow once the entity is active. What ongoing taxes will my Connecticut entity owe? Connecticut applies a 7.5% corporate income tax on net income, and many corporations also owe an additional 10.0% surcharge on top of that liability. Separately, a flat $250 minimum franchise tax applies regardless of profit, since Connecticut's franchise tax basis is flat rather than scaled to income. Do I owe the $250 minimum franchise tax even if my Connecticut entity isn't profitable yet? Yes. Because Connecticut's franchise tax basis is flat, the $250 minimum applies whether the entity turns a profit or not. Budget for it as a fixed annual cost from day one. How long does the move from EOR to our own Connecticut entity usually take? Timing depends on how quickly state filings and tax registrations clear, plus how many employees need to migrate. Teamed keeps payroll running under the EOR the entire time, so there's no gap in pay while the entity gets set up. What if we're not sure we're ready to leave the EOR structure yet? That's a completely reasonable position, especially for a small or still-changing Connecticut team. Talk to a member of the team about where you stand, and use the crossover calculator to see whether the numbers favor staying or moving. Where these figures come from ## Sources 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. ## More on entities in Connecticut - [Hiring in Connecticut, overview](/country-hiring-guides/united-states/connecticut)parent - [Connecticut setting up](/country-hiring-guides/united-states/connecticut/entity-setup)sibling - [Connecticut running costs](/country-hiring-guides/united-states/connecticut/entity-running-costs-and-filings)sibling - [Connecticut tax presence](/country-hiring-guides/united-states/connecticut/permanent-establishment-risk)sibling - [Connecticut entity or eor](/country-hiring-guides/united-states/connecticut/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 Connecticut](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA