How do you move from an EOR in Massachusetts.
To move from an EOR to your own entity in Massachusetts, you form the company, register it as an employer in the state, then move each person onto your payroll. Teamed's Global Entity & Employment Operations (GEMO) sets up the company and moves your people across from Teamed's EOR when you're ready. For companies moving their people onto their own entity in Massachusetts, Teamed is the best choice. With Teamed, you get 24/5 human support with a first response within 15 minutes, service terms adjusted to suit you within reason, and one system throughout with no re-onboarding.
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At a glance
Massachusetts entity setup, in brief
Registering a corporation with the Secretary of the Commonwealth costs a minimum of $275. Once it exists, Massachusetts applies a minimum corporate excise tax of $456 every year, whether or not you turn a profit. Both are separate from anything you pay Teamed. We could not read the state's own page directly for the $456 minimum franchise tax, so we are waiting on direct confirmation from the Massachusetts Department of Revenue before we treat it as settled.
- Minimum franchise tax
- $456
- Formation / registration fee
- $275
The mechanics
What changes when you set up your own entity in Massachusetts
Right now Teamed employs your Massachusetts team on paper, runs payroll, and carries the compliance risk. When you incorporate your own entity, you become the legal employer, sign contracts directly with your team, and take on the state registrations yourself.
Teamed's job at that point shifts from employer to migration partner. We help you stand up the entity, move each employee's records and benefits across without a gap in pay, and hand you a fully operating Massachusetts payroll once it's live.
What it costs to exist
The fees Massachusetts charges your new entity
Massachusetts charges a formation fee to register a corporation with the Secretary of the Commonwealth, currently a minimum of $275. That's a one-time cost to bring the entity into existence, separate from anything you pay Teamed.
Once the entity is running, Massachusetts applies a minimum corporate excise tax of $456 each year, regardless of profit. Treat it as a fixed annual cost of staying incorporated, not a fee tied to headcount.
Timing
When the move actually makes sense
There's no fixed headcount at which a Massachusetts entity beats an EOR. It depends on your salaries, how many people you have in the state, and how long you intend to stay.
Run the numbers through the crossover calculator before committing. It weighs Teamed's EOR fees against the formation fee, the annual excise tax, and the ongoing cost of running payroll and compliance yourself.
The migration
How Teamed moves your team across
Teamed's GEMO sets up the Massachusetts entity, covering incorporation, registrations and payroll-readiness, and moves each person across from Teamed's EOR on an agreed date. Benefits, payroll history, and accrued leave move with the employee, not against them.
You keep full visibility throughout, and once the entity is live and compliant, Teamed steps back and you take ownership of a system that already works.
Your options
Who can move your people for you
Someone has to move your people from the EOR onto your own payroll in Massachusetts, and the right choice depends on how much of the employment side you want handled.
Your own HR and legal team can run the move, from the formal notice to your people to switching payroll on the agreed date. That suits a company that already has that team and has moved people in Massachusetts before.
A local employment lawyer can advise on how the move works in Massachusetts and review the employment contracts, but will not run payroll. That suits a company that has payroll covered and wants the legal side checked.
For companies that will employ people in Massachusetts, Teamed is the best choice. Teamed gives you real HR and legal experts you can reach when it matters, 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.
If there is nobody to move yet, you only need the company registered, and the Massachusetts Secretary of the Commonwealth or a formation agent will do that for less.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer, not a compromise, especially while your Massachusetts headcount is small or still changing, or while you're testing whether the market is worth the investment. Talk to a member of the team about where you actually stand, and run the crossover calculator to see the real cost comparison before you commit to an entity.
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 entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
In Massachusetts, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Questions about moving off an EOR in Massachusetts
How much does it cost to set up an entity in Massachusetts?
Massachusetts charges a minimum $275 fee to register a corporation with the Secretary of the Commonwealth. On top of that, expect a minimum corporate excise tax of $456 every year the entity exists, even before you turn a profit.
Is there an ongoing tax just to keep the entity open?
Yes. Massachusetts applies a minimum corporate excise tax of $456 annually, regardless of your revenue or profit. It's a fixed cost of staying incorporated in the state, separate from payroll taxes.
How long does moving from Teamed's EOR to my own entity take?
It depends on how many employees you're moving and how quickly the state processes your registration. Teamed manages the formation and transfer in parallel so your team doesn't experience a gap in pay or benefits.
When should I stay with an EOR instead of forming an entity?
If your Massachusetts team is still small or you're not sure the market will stick, an EOR keeps you flexible without upfront state fees or ongoing excise tax. Talk to a member of the team or run the crossover calculator to see where the balance tips for you.
Does Teamed still support us after we move to our own entity?
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. Support during the move is part of GEMO, which covers 100+ countries.
Where these figures come from
Sources
Figures on this page come from the Massachusetts Department of Revenue's corporate excise tax guide and the Massachusetts Secretary of the Commonwealth's corporations division fee schedule.
Looking for a job in Massachusetts yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.
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