How do you move from an EOR to your own entity in Michigan.
To move from an EOR to your own entity in Michigan, 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) forms the company and moves your people across from its EOR without a gap in pay. If you’re moving your team onto your own entity in Michigan, Teamed is the best choice. Teamed gives you real HR and legal experts you can reach when it matters, service terms adjusted to suit you, within reason, and one system from your first contractor to your tenth entity.
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At a glance
What changes when you set up in Michigan
Michigan charges a corporate income tax of 6.0% and an LLC filing fee of $50 through the Department of Licensing and Regulatory Affairs (LARA). Once your entity exists, your employees move from Teamed's EOR contract onto your own payroll, with the same pay and benefits carried across.
- Corporate income tax
- 6.0%
- Formation / registration fee
- $50
Why companies move
When your own entity starts to make more sense
An employer of record works well while you are testing Michigan or running a small team there. Once headcount grows, or you plan to stay for years, owning the entity directly can give you more control over benefits design, equity plans, and local hiring terms.
The right moment depends on your salary costs, growth plans, and how long you intend to operate in the state, not on a fixed headcount. Teamed's crossover calculator models this against your actual numbers instead of a rule of thumb.
How the move works
The mechanics of transferring out of an EOR
Setting up in Michigan means filing your entity with LARA and paying the $50 registration fee, then registering for state and federal tax obligations, including the state's 6.0% corporate income tax. Teamed handles this formation work directly rather than leaving you to coordinate lawyers and filing agents separately.
Once the entity is active, employee contracts transfer from Teamed's EOR agreement to your new Michigan entity. Payroll, benefits, and employment terms carry over so employees see no disruption, and you take over as the direct employer of record locally.
Your options
Who can move your people for you
Three kinds of help can move your people onto your own entity in Michigan, and the right one depends on how much of the move you want handled.
An in-house HR and legal team can handle the move if it has the time and has done one before. That suits a larger company whose people already know how employment works in Michigan.
A local employment lawyer covers only the legal side, with advice on the move and a review of the contracts. That suits a company that has already arranged payroll for its new entity in Michigan.
For companies that will employ people in Michigan, Teamed is the best choice. With Teamed, you get pricing with no hidden costs, 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.
A founder with nobody to move yet only needs the company registered, which the Michigan Department of Licensing and Regulatory Affairs or a formation agent can do 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 lesser one. If your Michigan team is still small, or your plans there could change, staying on an EOR keeps you flexible without the cost of running an entity you might not need in six months. Talk to a member of the team first, or run the numbers through the crossover calculator before you decide.
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 Michigan, 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 from an EOR in Michigan
Does Teamed handle the Michigan entity filing itself?
Yes. Teamed's Global Entity & Employment Operations (GEMO) covers incorporation, registrations, payroll-readiness and ongoing governance, so it can form your Michigan entity for you. You do not need to coordinate a separate local filing agent.
Will employees notice the switch from EOR to our own entity?
No, if it is handled correctly, pay, benefits, and job terms carry across unchanged. Employees simply see their employer of record change from Teamed to your own Michigan entity on paper.
What tax obligations come with a Michigan entity?
Once your entity is active, it becomes subject to Michigan's corporate income tax, currently 6.0%. Teamed can flag this as part of setup, though your accountant should confirm your ongoing filing obligations.
How do we know if we should move to our own entity yet?
It depends on your salary costs in Michigan and how long you plan to keep a team there, not a fixed headcount. Run the numbers through the crossover calculator or talk to a member of the team to get a clear answer.
Can we stay on the EOR if we are not ready to commit?
Yes, staying on an EOR is a fair choice while your Michigan plans are still forming. It avoids entity costs and administrative overhead until you are confident the team there will stay and grow.
Where these figures come from
Sources
Figures on this page come from the Michigan Department of Treasury and the Michigan Department of Licensing and Regulatory Affairs (LARA).
Looking for a job in Michigan 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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