--- title: "EOR or Entity Setup in Minnesota" description: "Compare hiring through an EOR versus forming your own entity in Minnesota, with real costs, tax rates, and Teamed's GEMO transition path." canonical: https://www.teamed.global/country-hiring-guides/united-states/minnesota/eor-vs-entity --- ![Minnesota business district.](/cluster-assets/country-hiring-guides/united-states/minnesota/eor-vs-entity/images/hero.webp) # Should you hire throughan EOR or entity in Minnesota. In Minnesota, Teamed's EOR hires your team under our own entity immediately, or we set up your own Minnesota LLC when you're ready to scale. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Minnesota guide At a glance ## Minnesota in brief Minnesota's corporate franchise tax runs 9.8% on net income, and forming an LLC costs $155 to file Articles of Organization with the Secretary of State. Teamed's EOR lets you skip both while you test the market. Corporate income tax9.8% Formation / registration fee$155 How EOR works here ## Hiring in Minnesota without an entity When you hire through Teamed's EOR in Minnesota, we become the legal employer of record for your team member while you direct their day-to-day work. This means you skip Minnesota's LLC or corporation filing process entirely and start onboarding in days rather than weeks. Teamed handles Minnesota-specific payroll, withholding, and employment compliance under our existing entity, so you never touch the state's registration requirements at all. This route works well if you're hiring one or two people in Minnesota and don't yet need a permanent local presence there. Setting up your own entity ## Forming a Minnesota LLC or corporation If you do want your own entity, Minnesota's Secretary of State charges a filing fee of $155 to register LLC Articles of Organization. You'll also need a registered agent with a Minnesota address and ongoing state filings to keep the entity in good standing. Corporations operating in Minnesota pay a corporate franchise tax of 9.8% on net income, one of the higher state rates in the country, so plan your structure with that in mind. An LLC taxed as a pass-through avoids this corporate-level tax, but the choice affects payroll setup, liability, and how smoothly you can transfer employment later if you move from EOR to entity. The honest take ## When EOR beats a Minnesota entity, and when it doesn't There's no universally right answer between EOR and entity in Minnesota. It depends on your headcount, how confident you are in the market, and how long you plan to stay there. GEMO ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. Many companies start with Teamed's EOR in Minnesota and later want their own Global Entity and Employment Operations, which we call GEMO, once they've proven the market and grown the team there. 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, especially for a small or still-changing team, or when you're testing the Minnesota market before committing further. Talk to a member of the team about your plans, or run the numbers through the crossover calculator to see where the balance tips based on your salaries and how long you intend to stay. 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. For Minnesota, that means Teamed's GEMO team handles the Secretary of State filing, the registered agent requirement, and the franchise tax registration, then hands over full ownership and control once your entity is live. You keep the same employees and the same systems, and you skip the setup friction, across 100+ countries whenever you're ready to do this elsewhere too. 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 Minnesota Questions ## Common questions about EOR and entities in Minnesota Do I need a Minnesota entity to hire employees there? No. You can hire through Teamed's EOR without setting up any Minnesota entity, since we act as the legal employer under our own registration. This is the fastest way to add Minnesota-based staff without touching the Secretary of State's filing process. How much does it cost to register an LLC in Minnesota? Minnesota's Secretary of State charges $155 to file LLC Articles of Organization. That fee doesn't include registered agent costs or the ongoing compliance filings you'll need once the entity exists. What tax rate applies to a Minnesota corporation? Minnesota levies a corporate franchise tax of 9.8% on net income for corporations operating in the state, according to the Minnesota Department of Revenue. This is a flat rate applied to income earned in Minnesota, separate from any federal corporate tax obligations. When should I switch from EOR to my own Minnesota entity? It depends on your salaries, headcount, and how long you plan to keep people in Minnesota, not a fixed number of employees. Run your numbers through the crossover calculator, or talk to a member of the team, to see where an entity starts to make more financial sense. Can Teamed help set up my Minnesota entity later? Yes. Teamed's GEMO team can set up your Minnesota LLC or corporation, migrate your existing EOR employees into it, and hand you a fully operational entity with nothing left half-finished. Where these figures come from ## Sources These figures come from the Minnesota Department of Revenue and the Minnesota Secretary of State. ## More on entities in Minnesota - [Hiring in Minnesota, overview](/country-hiring-guides/united-states/minnesota)parent - [Minnesota setting up](/country-hiring-guides/united-states/minnesota/entity-setup)sibling - [Minnesota running costs](/country-hiring-guides/united-states/minnesota/entity-running-costs-and-filings)sibling - [Minnesota tax presence](/country-hiring-guides/united-states/minnesota/permanent-establishment-risk)sibling - [Minnesota moving from an eor](/country-hiring-guides/united-states/minnesota/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 Minnesota](https://www.teamed.global/contact?from=eor-vs-entity)CTA