--- title: "Moving From an EOR to Your Own Entity in Mississippi" description: "Thinking about setting up your own entity in Mississippi after using an EOR? Here's how the switch works and what Teamed handles for you." canonical: https://www.teamed.global/country-hiring-guides/united-states/mississippi/moving-from-eor-to-your-own-entity --- ![Mississippi business district.](/cluster-assets/country-hiring-guides/united-states/mississippi/moving-from-eor-to-your-own-entity/images/hero.webp) # How do you move from an EORto your own entity in Mississippi. You form a Mississippi entity, transfer employment contracts, and Teamed hands over payroll and compliance intact, no gap in coverage. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Mississippi guide 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 $0. 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 tax5.0% Minimum franchise tax$0 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 $0 minimum franchise tax means you won't face a franchise floor regardless of your entity's income in a given year, which simplifies early-stage cost planning. 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 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 registering your entity with the Secretary of State, handling the $50 formation fee, and setting up ongoing compliance around the state's 5.0% corporate income tax and $0 minimum franchise tax, all before we transfer operations to you fully staffed and running. 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 ## 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, 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 $0, per the Department of Revenue's instructions. This removes a fixed franchise floor that some other states impose regardless of income. 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. ## 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 entity or eor](/country-hiring-guides/united-states/mississippi/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 Mississippi](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA