--- title: "Moving From EOR to Your Own Entity in Massachusetts" description: "How moving from Teamed's EOR to your own Massachusetts entity works, plus the state's formation fee and annual excise tax." canonical: https://www.teamed.global/country-hiring-guides/united-states/massachusetts/moving-from-eor-to-your-own-entity --- ![Massachusetts business district.](/cluster-assets/country-hiring-guides/united-states/massachusetts/moving-from-eor-to-your-own-entity/images/hero.webp) # How do you move froman EOR in Massachusetts. You form a Massachusetts entity, migrate payroll and benefits into it, and Teamed hands the setup back to you fully operational. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Massachusetts guide At a glance ## Massachusetts entity setup, in brief Registering a corporation with the Secretary of the Commonwealth costs $500. 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. Minimum franchise tax$456 Formation / registration fee$500 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 $500. 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 We register the entity in Massachusetts, get it enrolled with the right state tax and employment accounts, and transfer each employment contract from Teamed to your new legal entity 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. 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 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 we handle the Secretary of the Commonwealth registration, the state tax accounts, and the transfer of your team's contracts and benefits, then step back once the entity is compliant and running under its own name. Global Entity and Employment Operations, which we call GEMO, works the same way in Massachusetts as it does across the rest of our 100+ countries: we build it, we migrate you in, and we hand it back intact. 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 ## Questions about moving off an EOR in Massachusetts How much does it cost to set up an entity in Massachusetts? Massachusetts charges a $500 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 sets up the entity, migrates your contracts, payroll, and benefits across, then hands the entity back to you fully operational. Support during the transition is part of the GEMO service, across Massachusetts and the rest of our 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. ## 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 entity or eor](/country-hiring-guides/united-states/massachusetts/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 Massachusetts](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA