--- title: "Moving From an EOR to Your Own Entity in Michigan" description: "Planning to move from an EOR to your own Michigan entity? See what changes, what stays the same, and how Teamed's GEMO handles the transition." canonical: https://www.teamed.global/country-hiring-guides/united-states/michigan/moving-from-eor-to-your-own-entity --- ![Michigan business district.](/cluster-assets/country-hiring-guides/united-states/michigan/moving-from-eor-to-your-own-entity/images/hero.webp) # How do you move from an EORto your own entity in Michigan. Teamed forms your Michigan entity, transfers employees over without a break in service, and hands you full control when ready. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Michigan guide 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 tax6.0% 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. 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 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 Michigan, that means we file with LARA, register you for the state's corporate income tax, and move your existing employees onto your new entity's payroll without a gap in their employment. We run this across 100+ countries, so the same handover process applies whether Michigan is your first entity or your fifth. 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 Michigan Questions ## Questions about moving from an EOR in Michigan Does Teamed handle the Michigan entity filing itself? Yes, Teamed forms the entity through the Michigan Department of Licensing and Regulatory Affairs (LARA) and pays the associated filing fee on your behalf. 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). ## More on entities in Michigan - [Hiring in Michigan, overview](/country-hiring-guides/united-states/michigan)parent - [Michigan setting up](/country-hiring-guides/united-states/michigan/entity-setup)sibling - [Michigan running costs](/country-hiring-guides/united-states/michigan/entity-running-costs-and-filings)sibling - [Michigan tax presence](/country-hiring-guides/united-states/michigan/permanent-establishment-risk)sibling - [Michigan entity or eor](/country-hiring-guides/united-states/michigan/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 Michigan](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA