--- title: "Moving From an EOR to Your Own Entity in Montana" description: "How to move from an EOR to your own entity in Montana: taxes, fees, and how Teamed handles the transition without disrupting payroll." canonical: https://www.teamed.global/country-hiring-guides/united-states/montana/moving-from-eor-to-your-own-entity --- ![Montana business district.](/cluster-assets/country-hiring-guides/united-states/montana/moving-from-eor-to-your-own-entity/images/hero.webp) # Moving from an EOR toyour own entity in Montana. Teamed sets up your Montana entity, migrates your team's employment records, then hands you full control, no gaps in payroll or compliance. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Montana guide 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 tax6.75% Minimum franchise tax$50 Franchise tax basisflat 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 forms the Montana entity, gets it registered and tax-ready, and keeps your team paid on the existing EOR arrangement until the new entity can legally 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 ## 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 builds you a real, wholly-owned entity instead of leaving you on an EOR indefinitely. We handle formation, tax registration, and the operational setup, then transfer employment across cleanly. 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 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 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. 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 Montana 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. ## More on entities in Montana - [Hiring in Montana, overview](/country-hiring-guides/united-states/montana)parent - [Montana setting up](/country-hiring-guides/united-states/montana/entity-setup)sibling - [Montana running costs](/country-hiring-guides/united-states/montana/entity-running-costs-and-filings)sibling - [Montana tax presence](/country-hiring-guides/united-states/montana/permanent-establishment-risk)sibling - [Montana entity or eor](/country-hiring-guides/united-states/montana/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 Montana](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA