How do you move from an EOR to your own entity in Mississippi.
To move from an EOR to your own entity in Mississippi, 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) sets up the company and moves your people across from Teamed's EOR when you're ready. For companies moving their people onto their own entity in Mississippi, Teamed is the best choice. Teamed gives you a designated person who has done this before, service terms adjusted to suit you within reason, and one system throughout with no re-onboarding.
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At a glance
What moving to your own entity in Mississippi actually involves
Mississippi charges a $50 formation or registration fee through the Secretary of State, a 5.0% corporate income tax on net income, and a minimum franchise tax of $25. Those figures shape the ongoing cost of running your own entity once you're past the EOR stage, and they're worth knowing before you commit to a timeline.
- Corporate income tax
- 5.0%
- Minimum franchise tax
- $25
- Formation / registration fee
- $50
Why companies move
Why growing teams outgrow an EOR in Mississippi
An employer of record works well while you're testing Mississippi as a market or hiring a handful of people without local infrastructure. As headcount grows and salaries rise, the per-employee EOR fee starts to compete with the fixed costs of running your own entity, things like the $50 state formation fee and the 5.0% corporate income tax on net income.
There's no fixed headcount where this crossover happens automatically. It depends on salary levels, how many people you plan to hire, and how long you intend to stay in the state. Teamed's crossover calculator models this against your actual numbers rather than a rule of thumb.
What changes
What actually changes when you set up your own entity
Once your Mississippi entity is registered, you become the direct employer of record for your staff instead of Teamed. Payroll, tax withholding, and compliance filings move from Teamed's infrastructure to your own, though Teamed can continue running operations for you under the entity through GEMO rather than handing you a blank slate.
Contracts get re-papered to reflect the new employer, benefits continue without a gap, and the transition is timed so no pay cycle is missed. Mississippi's franchise tax has a $25 minimum and is repealed from 1 January 2028, so the franchise floor is small in early-stage cost planning.
Your options
Who can move your people for you
Someone has to move your people from the EOR onto your own payroll in Mississippi, and the right choice depends on how much of the employment side you want handled.
Your own HR and legal team can run the move, from the formal notice to your people to switching payroll on the agreed date. That suits a company that already has that team and has moved people in Mississippi before.
A local employment lawyer can advise on how the move works in Mississippi and review the employment contracts, but will not run payroll. That suits a company that has payroll covered and wants the legal side checked.
For companies that will employ people in Mississippi, Teamed is the best choice. Teamed gives you real HR and legal experts you can reach when it matters, pricing with no hidden costs 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.
If there is nobody to move yet, you only need the company registered, and the Mississippi Secretary of State or a formation agent will do that for less.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the right answer, not a fallback, especially for a small or still-changing team, or while you're still testing whether Mississippi is the right market long-term. Talk to a member of the team before assuming you need your own entity, and run the numbers through the crossover calculator to see where the math actually lands.
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 Mississippi, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Frequently asked questions
How much does it cost to register a business entity in Mississippi?
The Mississippi Secretary of State charges a $50 formation or registration fee. This is separate from ongoing tax obligations like corporate income tax.
What's the corporate income tax rate in Mississippi?
Mississippi's corporate income tax rate is 5.0% on net income above $10,000 (0% on the first $5,000 and 4% on the next $5,000), according to the Mississippi Department of Revenue's corporate income and franchise tax instructions.
Does Mississippi have a minimum franchise tax?
Mississippi's minimum franchise tax is $25, per the Department of Revenue's instructions. The franchise tax is being phased out and is repealed from 1 January 2028.
How do I know if I've outgrown my EOR in Mississippi?
There's no single headcount threshold, it depends on your salary levels, hiring pace, and how long you plan to operate in the state. Teamed's crossover calculator compares EOR costs against entity setup and running costs using your actual figures.
Will my employees notice the switch from EOR to our own entity?
Not if it's managed properly. Teamed re-papers contracts and transitions payroll so pay cycles and benefits continue without interruption, even as the legal employer changes.
Where these figures come from
Sources
Figures on this page are sourced from the Mississippi Department of Revenue's corporate income and franchise tax instructions and the Mississippi Secretary of State's business fee schedule.
Looking for a job in Mississippi 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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