--- title: "Massachusetts EOR vs Entity Setup" description: "Compare Massachusetts entity setup costs to hiring through an EOR, and see how Teamed transitions you into your own entity when ready." canonical: https://www.teamed.global/country-hiring-guides/united-states/massachusetts/eor-vs-entity --- ![Massachusetts business district.](/cluster-assets/country-hiring-guides/united-states/massachusetts/eor-vs-entity/images/hero.webp) # Should you hire through an EOR orset up your own entity in Massachusetts. Teamed hires your Massachusetts team under our entity today, then sets up and hands you your own corporation the moment it makes sense. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Massachusetts guide At a glance ## Massachusetts entity costs versus EOR Setting up a Massachusetts corporation costs a $500 formation fee upfront and carries a minimum corporate excise tax of $456 every year after that, whether or not the business is profitable. Teamed's EOR lets you hire in Massachusetts today under our existing entity, then migrate into your own corporation through GEMO once the numbers justify it. Minimum franchise tax$456 Formation / registration fee$500 How it works ## Two ways to put someone on payroll in Massachusetts An employer of record lets Teamed become the legal employer for your Massachusetts hire, running payroll, tax withholding, and benefits under our existing corporate registration, so you skip incorporation entirely. Forming your own entity means registering a corporation with the Secretary of the Commonwealth, opening a state tax account, and taking on ongoing compliance yourself, work that makes sense once your Massachusetts presence is stable and growing. Cost ## What a Massachusetts entity actually costs The Massachusetts Secretary of the Commonwealth charges a formation and registration fee of $500 to set up a corporation, before you've hired a single person or signed a lease. Once the entity exists, the Massachusetts Department of Revenue applies a minimum corporate excise tax of $456 every year, regardless of whether the business turns a profit. That's a baseline cost that stacks on top of payroll taxes, registered agent fees, and the accounting work needed to keep the entity compliant. Timing ## When the switch from EOR to entity actually pays off There's no fixed number of employees that tells you it's time to incorporate in Massachusetts. It depends on salary levels, how many people you plan to hire, and how long you intend to keep a presence in the state. Run the numbers with Teamed's crossover calculator instead of guessing. It weighs the $500 formation fee and $456 minimum excise tax against ongoing EOR service fees, using your actual headcount and pay levels. Before you commit ## Sometimes an employer of record is the better fit An employer of record is sometimes simply the better answer, not a lesser one, especially while your Massachusetts headcount is still small or the plan could change. Talk to a member of the team about your specific situation, or run the numbers yourself in the crossover calculator before you commit to incorporation costs you might not need yet. 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 Massachusetts that means Teamed handles the corporate registration, the $500 formation fee, and the ongoing $456 minimum excise tax filings while your team is still small, then transfers a fully compliant entity into your name when you're ready to run it directly. Global Entity and Employment Operations, which we call GEMO, works the same way across 100+ countries, so the Massachusetts entity you inherit is one piece of a consistent global setup. 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 Massachusetts Questions ## Massachusetts EOR and entity questions Do I need a Massachusetts entity to hire one employee there? No. Teamed's EOR entity can employ that person on payroll immediately, without you registering a Massachusetts corporation or filing for a state tax account. That keeps you out of the $500 formation fee and the annual $456 minimum excise tax until you actually need your own entity. What does it cost to form a corporation in Massachusetts? The Secretary of the Commonwealth charges a $500 formation and registration fee for a new corporation. On top of that, the Department of Revenue applies a minimum corporate excise tax of $456 every year, even in years the entity has no profit. Is the $456 minimum excise tax the only Massachusetts business tax I'd owe? It's the floor, not the ceiling. The minimum corporate excise tax of $456 applies regardless of income, and it sits alongside payroll withholding, unemployment insurance, and any income-based excise once the business is profitable. How do I know when to move from EOR to my own entity in Massachusetts? There's no universal headcount trigger, it depends on your salaries, growth plans, and how long you intend to stay in the state. Run the crossover calculator or talk to a member of the team to compare the $500 formation fee and $456 minimum excise tax against your current EOR costs. Can Teamed help me set up the Massachusetts entity later? Yes. Through GEMO, Teamed sets up the Massachusetts corporation, handles the registration and tax filings, and migrates your existing team into it, then hands you a fully compliant entity to run yourself. Where these figures come from ## Sources These figures come from the Massachusetts Department of Revenue's corporate excise tax guide and the Massachusetts Secretary of the Commonwealth's corporations division fee schedule. ## More on entities in Massachusetts - [Hiring in Massachusetts, overview](/country-hiring-guides/united-states/massachusetts)parent - [Massachusetts setting up](/country-hiring-guides/united-states/massachusetts/entity-setup)sibling - [Massachusetts running costs](/country-hiring-guides/united-states/massachusetts/entity-running-costs-and-filings)sibling - [Massachusetts tax presence](/country-hiring-guides/united-states/massachusetts/permanent-establishment-risk)sibling - [Massachusetts moving from an eor](/country-hiring-guides/united-states/massachusetts/moving-from-eor-to-your-own-entity)sibling - [Set up an entity, by country](/entity-setup-by-country)hub - [Entity Management (GEMO)](/entity-management)core - [Talk to an expert about Massachusetts](https://www.teamed.global/contact?from=eor-vs-entity)CTA