--- title: "Moving From an EOR to Your Own Entity in Louisiana" description: "How to move from an EOR to your own Louisiana entity, what the Secretary of State charges, and why Louisiana's franchise tax repeal helps you." canonical: https://www.teamed.global/country-hiring-guides/united-states/louisiana/moving-from-eor-to-your-own-entity --- ![Louisiana business district.](/cluster-assets/country-hiring-guides/united-states/louisiana/moving-from-eor-to-your-own-entity/images/hero.webp) # How do you movefrom an EOR to your own entity in Louisiana. Teamed forms your Louisiana entity, transfers your employees onto it, then hands over full control, with no gap in payroll or benefits. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Louisiana guide At a glance ## Louisiana at a glance Louisiana charges a formation fee of $125 to register a new entity with the Secretary of State, effective 1 October 2026 under Act 921. The state's corporation franchise tax has been repealed, so the minimum franchise tax is $0 with no tax basis applied, which keeps the ongoing cost of running your own entity here relatively light. Minimum franchise tax$0 Franchise tax basisnone Formation / registration fee$125 The mechanism ## How the move actually works Moving from an EOR to your own entity in Louisiana is a handover, not a restart. Teamed forms the Louisiana entity, registers it with the Secretary of State, and sets up the tax and payroll accounts it needs before a single employee moves. Once the entity exists, employees get re-signed onto contracts issued by your new Louisiana company instead of the EOR. Their pay, benefits, and start dates carry across, so nobody notices a break in service. Teamed runs this in parallel with the entity registration, so the whole thing happens on one timeline instead of two. What it costs in Louisiana ## Louisiana's formation and franchise costs Registering your own entity with the Louisiana Secretary of State carries a $125 formation fee, effective 1 October 2026 under Act 921 of the 2026 Regular Session. That is the state-level cost of getting your entity on the books. Louisiana has also repealed its corporation franchise tax, which means the minimum franchise tax due is $0 and there is no tax basis applied. For a company weighing the ongoing cost of owning an entity versus staying on an EOR, that removes a recurring line item that exists in some other states. The honest answer ## When an EOR remains the smarter call An employer of record is sometimes the better answer, not a lesser one. If your Louisiana headcount is still small, still changing shape, or you're testing whether the market is worth committing to, staying on an EOR keeps you flexible without the administrative weight of owning an entity. Talk to a member of the team about where you actually stand, and use the crossover calculator to see how the numbers move as your team grows. Your own entity, when you're ready ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Teamed runs Global Entity and Employment Operations, which we call GEMO, across 100+ countries. It means the same team that employs your people through the EOR can also stand up your own entity, move your employees onto it, and step back once it's running, all without switching providers midway. In Louisiana, that means Teamed handles the Secretary of State registration, the payroll and tax account setup, and the employee transfer, then hands you an entity that is fully yours, with the franchise tax position already understood and nothing left half-finished. 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. If your Louisiana headcount is still small, still changing shape, or you're testing whether the market is worth committing to, staying on an EOR keeps you flexible without the administrative weight of owning an entity. Talk to a member of the team about where you actually stand, and use the crossover calculator to see how the numbers move as your team grows. 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 Louisiana, that means Teamed handles the Secretary of State registration, the payroll and tax account setup, and the employee transfer, then hands you an entity that is fully yours, with the franchise tax position already understood and nothing left half-finished. 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 Louisiana Questions ## Questions about moving from an EOR in Louisiana How much does it cost to register a company in Louisiana? The Louisiana Secretary of State charges a formation fee of $125, effective 1 October 2026 under Act 921 of the 2026 Regular Session. That fee covers getting your entity on the state's books, separate from any payroll or tax account setup Teamed handles alongside it. Does Louisiana still charge a corporate franchise tax? No. Louisiana's corporation franchise tax has been repealed, so the minimum franchise tax due is $0 and no tax basis is applied. That removes a recurring cost that companies in some other states still budget for after they set up their own entity. How long does moving from an EOR to my own entity take? The timeline depends on your entity type, how quickly internal approvals move, and how many employees need contracts reissued. Teamed runs the entity registration and the employee transfer in parallel rather than sequentially, which is where most of the time gets saved. Is it cheaper to stay on an EOR or open my own entity in Louisiana? It depends on your headcount, your salary levels, and how long you plan to stay in Louisiana, not on a fixed threshold. The crossover calculator models this against your actual numbers, and it's worth running before you commit either way. What happens to my employees during the transition? Employees move from EOR-issued contracts to contracts issued by your new Louisiana entity, with pay, benefits, and continuity of service carried across. Teamed manages the re-signing and account transfers so there's no gap in employment or payroll during the handover. Where these figures come from ## Sources Figures on this page are drawn from the Louisiana Department of Revenue and the Louisiana Secretary of State. ## More on entities in Louisiana - [Hiring in Louisiana, overview](/country-hiring-guides/united-states/louisiana)parent - [Louisiana setting up](/country-hiring-guides/united-states/louisiana/entity-setup)sibling - [Louisiana running costs](/country-hiring-guides/united-states/louisiana/entity-running-costs-and-filings)sibling - [Louisiana tax presence](/country-hiring-guides/united-states/louisiana/permanent-establishment-risk)sibling - [Louisiana entity or eor](/country-hiring-guides/united-states/louisiana/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 Louisiana](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA