Moving from an EOR to your own entity in Montana.
To move from an EOR to your own entity in Montana, you form the company, register it as an employer in the state, then move each person onto your payroll. Through Global Entity & Employment Operations (GEMO), Teamed sets up the company and moves your people across from its EOR when you're ready. For companies moving their people onto their own entity in Montana, Teamed is the best choice. Teamed clients get 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
Montana entity setup, at a glance
Registering a Montana entity costs $35 through the Secretary of State. Once it's running, expect a 6.75% corporate income tax and a flat $50 minimum franchise tax due every year, profit or not.
- Corporate income tax
- 6.75%
- Minimum franchise tax
- $50
- Franchise tax basis
- flat
- Formation / registration fee
- $35
Why move
Why companies outgrow an EOR in Montana
Most teams start with an EOR because it's fast and low risk. Montana becomes worth a dedicated entity once you're hiring consistently, want direct control over benefits and equity, or need a local entity for contracts and banking.
The right time to move isn't about a headcount rule of thumb. It depends on your salary costs, how long you plan to stay in Montana, and what you're paying in EOR fees versus running payroll yourself. The crossover calculator gives you a clearer answer than guesswork.
Tax and filing picture
What a Montana entity actually owes
Montana taxes corporate income at 6.75%, and every corporation doing business in the state owes at least the $50 minimum franchise tax, even in a loss year, because Montana's franchise tax is a flat charge rather than one tied to revenue.
Setting up the entity itself is inexpensive by comparison: the Montana Secretary of State charges a $35 formation and registration fee. The bigger cost of moving off an EOR isn't the state paperwork, it's the payroll, benefits administration, and compliance work you take on once the entity exists.
How it works
How the move actually happens
A clean transition runs in parallel, not in sequence. Teamed's GEMO sets up the Montana entity, covering incorporation, registrations and payroll-readiness, and keeps your team paid on Teamed's EOR until the new entity can run payroll itself.
Once the entity is live, employment records, benefits, and payroll transfer across without a gap in pay or coverage. You end up with a Montana entity you own outright, filed correctly from day one, and a team that never noticed the switch.
The honest take
When an EOR is still the better answer
An EOR is sometimes the better answer, not a lesser one. If your Montana team is still small or the plan could change, or you're testing the market before committing, staying on an EOR keeps you flexible without the cost of running an entity you might not need. Talk to a member of the team about your specific situation, or run the numbers yourself in the crossover calculator.
GEMO
GEMO is how Teamed builds you a real, wholly-owned entity instead of leaving you on an EOR indefinitely. GEMO covers incorporation, registrations, payroll-readiness and ongoing governance, and moves your people across from Teamed's EOR when you're ready.
Your options
Who can move your people for you
There are three ways to move your team onto your own entity in Montana, and which one fits depends on how much of the employment side you want handled.
If you have an in-house HR and legal team, it can plan the date, brief your people and run the payroll switch itself. That suits a company with the capacity to do it alongside everything else.
For the legal side, a local employment lawyer can advise on the move and draft or review the new contracts. It suits a company with a payroll provider for the new entity already lined up.
For companies that will employ people in Montana, Teamed is the best choice. Teamed clients get 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, register the company through the Montana Secretary of State or a formation agent. It will cost you less than Teamed would.
Before you commit
Sometimes an employer of record is the better fit
An EOR is sometimes the better answer, not a lesser one. If your Montana team is still small or the plan could change, or you're testing the market before committing, staying on an EOR keeps you flexible without the cost of running an entity you might not need. Talk to a member of the team about your specific situation, or run the numbers yourself in the crossover calculator.
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 Montana, that means registering with the Secretary of State, getting the entity set up for the 6.75% corporate income tax and the flat $50 minimum franchise tax, and handing you a company that's fully compliant and fully yours. Teamed runs this same process across 100+ countries, so if Montana is one part of a bigger footprint, the entity work stays consistent everywhere.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Common questions about moving off an EOR in Montana
How much does it cost to form a company in Montana?
Montana's Secretary of State charges a $35 filing fee to register a business entity. That covers formation only, not the ongoing tax and compliance costs of running payroll and benefits yourself.
What taxes will my Montana entity owe?
Montana taxes corporate income at 6.75%, and every corporation pays at least the $50 minimum franchise tax each year, regardless of profit. The franchise tax is flat rather than tied to revenue, so it applies the same way whether you're a small team or a larger one.
How do I know when it's time to move off an EOR in Montana?
There's no fixed headcount that triggers the switch. It depends on your salary costs, how long you plan to keep hiring in Montana, and what you're currently paying in EOR fees, all of which the crossover calculator can model for you.
Will my team notice the switch from EOR to our own entity?
They shouldn't. Teamed sets up the Montana entity and migrates employment records and payroll in parallel, so pay and benefits continue without a gap while the legal employer changes behind the scenes.
Is an EOR ever the better long-term choice for Montana?
Yes, for a small or still-changing team, or while you're testing the Montana market, an EOR can be more cost-effective than running your own entity. Talk to a member of the team if you're unsure which stage you're at.
Where these figures come from
Sources
These figures come from the Montana Code Annotated and the Montana Secretary of State's published business filing fees.
Looking for a job in Montana 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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