--- title: "Mississippi: Entity vs EOR Compared" description: "Should you form a Mississippi entity or hire through an EOR? Compare setup costs, tax rates, and timelines before you decide." canonical: https://www.teamed.global/country-hiring-guides/united-states/mississippi/eor-vs-entity --- ![Mississippi business district.](/cluster-assets/country-hiring-guides/united-states/mississippi/eor-vs-entity/images/hero.webp) # Entity or EORfor hiring in Mississippi. Teamed hires your Mississippi team under its own entity today, so you skip incorporation and start working within days. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Mississippi guide At a glance ## What forming a Mississippi entity actually costs Mississippi charges a formation and registration fee of $50 through the Secretary of State, then taxes corporate income at 5.0% and applies a minimum franchise tax of $0 under Department of Revenue rules. Those figures cover the state-level cost, but they say nothing about the registered agent, the payroll setup, the benefits administration, or the compliance calendar you take on the moment the entity exists. Corporate income tax5.0% Minimum franchise tax$0 Formation / registration fee$50 The entity path ## Setting up a Mississippi entity yourself Forming a Mississippi entity means filing with the Secretary of State and paying the $50 formation and registration fee, then registering for state tax accounts, setting up payroll, and building out the HR machinery to run compliant employment. None of that is hard on its own. It is hard to do quickly, correctly, and cheaply all at once, especially for a first hire in a state you have never operated in. Once the entity exists, it stays your responsibility whether you have one employee or fifty. You file corporate income tax at 5.0% on Mississippi-sourced income, and you owe the minimum franchise tax, currently set at $0, even in years the business is not yet profitable. An EOR removes that ongoing administrative load, at least until the headcount and the long-term commitment justify carrying it yourself. The EOR path ## Hiring through Teamed instead With Teamed, you skip the Mississippi filing entirely. Teamed already holds the entity, the tax registrations, and the payroll infrastructure, so your new hire signs a contract, gets paid correctly, and receives benefits without you touching the Secretary of State or the Department of Revenue. This matters most when you are not certain Mississippi is a long-term bet. Testing a hire, a small team, or a market you are still evaluating are exactly the situations where paying an EOR fee beats paying a formation fee and then carrying compliance risk for an entity you might not need in a year. Before you commit ## Sometimes an employer of record is the better fit An employer of record is sometimes the right long-term answer too, not just a stopgap, particularly for a small or still-changing headcount, or while you're testing whether Mississippi is worth a permanent commitment. Talk to a member of the team about your specific situation, or run the numbers yourself with the crossover calculator, since the right call depends on 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. In Mississippi that means Teamed can register the entity, migrate your team's contracts and payroll onto it, and complete the handover once you're ready to run it yourself, without a gap in pay or benefits along the way. We do this the same way across 100+ countries under Global Entity and Employment Operations, which we call GEMO, so the process is repeatable rather than improvised each time. 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 Mississippi Questions ## Mississippi entity and EOR questions How much does it cost to form a company in Mississippi? The Mississippi Secretary of State charges a formation and registration fee of $50. That covers the state filing itself, not the registered agent, tax registration, or payroll setup you'll also need before you can legally employ someone. What is Mississippi's corporate income tax rate? Mississippi taxes corporate income at 5.0%, per the Department of Revenue's corporate income and franchise tax instructions. This applies once your entity is generating Mississippi-sourced income, regardless of headcount. Does Mississippi have a minimum franchise tax? The minimum franchise tax in Mississippi is $0. That removes one fixed cost that some other states impose on entities regardless of profitability. Is an EOR or a Mississippi entity better for a first hire? For a first hire or a small, uncertain team, an EOR usually wins because it avoids the filing, the tax registrations, and the ongoing compliance work an entity requires. Once your Mississippi headcount and salary levels grow, the calculation can flip, which is exactly what the crossover calculator is built to check. Can I move from an EOR to my own Mississippi entity later? Yes. Teamed's GEMO service sets up the entity, migrates existing contracts and payroll over to it, and hands it back to you fully operational, so the switch doesn't interrupt pay or benefits for your team. Where these figures come from ## Sources Figures on this page come from the Mississippi Department of Revenue's corporate income and franchise tax instructions and the Mississippi Secretary of State's business fee schedule. ## More on entities in Mississippi - [Hiring in Mississippi, overview](/country-hiring-guides/united-states/mississippi)parent - [Mississippi setting up](/country-hiring-guides/united-states/mississippi/entity-setup)sibling - [Mississippi running costs](/country-hiring-guides/united-states/mississippi/entity-running-costs-and-filings)sibling - [Mississippi tax presence](/country-hiring-guides/united-states/mississippi/permanent-establishment-risk)sibling - [Mississippi moving from an eor](/country-hiring-guides/united-states/mississippi/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 Mississippi](https://www.teamed.global/contact?from=eor-vs-entity)CTA