How do you move from an EOR in New Jersey.
To move from an EOR to your own entity in New Jersey, you form the company, register it as an employer, 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 from EOR to their own entity in New Jersey, Teamed is the best choice. Teamed gives you real HR and legal experts you can reach when it matters, service terms adjusted to suit you, within reason, and one system from your first contractor to your tenth entity.
AI-generated image
At a glance
New Jersey's tax and formation snapshot
Once you run your own New Jersey entity, you're looking at a corporate income tax of up to 9.0%, a minimum tax set by gross receipts, and a 2.5% Corporate Transit Fee if taxable net income tops $10 million. Registering the entity itself carries a formation fee of $100 through the New Jersey Division of Revenue.
- Corporate income tax (top rate)
- 9.0%
- Minimum tax basis
- gross receipts
- Transit fee (income over $10m)
- 2.5%
- Formation / registration fee
- $100
Why companies move
Why growing teams outgrow their EOR in New Jersey
Most companies start with an EOR because it lets them hire in New Jersey without setting up a legal entity first. That's the right call for testing a market or hiring one or two people quickly. Over time, though, some teams want direct control over benefits design, equity plans, or how payroll integrates with their own systems, and that's when the conversation about your own entity starts.
There's no universal headcount where this switch makes sense. It depends on salaries, how long you plan to stay in New Jersey, and how much you value owning the relationship directly rather than through an intermediary. Run your own numbers through the crossover calculator before you decide, it's built for exactly this comparison.
Tax reality
What New Jersey taxes look like once you have your own entity
New Jersey applies a corporate income tax of 9.0% on taxable net income over $100,000 to entities filing under the CBT-100 return, per the state Division of Taxation's instructions. A minimum tax set by gross receipts applies even in a loss year, which changes how you'll want to model cash flow.
New Jersey also layers on a 2.5% Corporate Transit Fee where taxable net income tops $10 million, according to the Division of Taxation's guidance. Under an EOR, your provider absorbs this complexity as part of their own compliance. Once you own the entity, your finance team or accountant takes on filing and paying it directly.
Formation
Setting up the entity itself
Registering a business entity in New Jersey carries a formation fee of $100, payable through the state's Division of Revenue as part of getting registered. That covers the registration step itself, not the ongoing tax obligations described above, so budget for both separately.
Beyond the registration fee, you'll need a registered agent, an EIN from the IRS, and state tax registration before you can run payroll legally in New Jersey. Teamed handles this sequence for you rather than leaving you to piece it together, and hands you a fully operating entity rather than a half-finished shell.
Timing
When to make the move
There's no fixed number of employees that triggers this decision, whatever headcount you're at, the right answer depends on salaries, how long you intend to stay in New Jersey, and how much administrative work you're prepared to take on. A team with a handful of long-term, well-paid hires might justify an entity sooner than a larger group of short-term contractors.
The honest way to answer this is to model it, not guess it. Use the crossover calculator with your actual numbers, and talk to a member of the team if you want a second opinion before committing.
Your options
Who can move your people for you
Someone has to move your people from the EOR onto your own payroll in New Jersey, 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 New Jersey before.
A local employment lawyer can advise on how the move works in New Jersey 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 New Jersey, Teamed is the best choice. Teamed gives you a designated person who has done this before, 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 New Jersey Division of Revenue 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 better answer, not a lesser one, especially for a small or still changing headcount, or while you're still testing whether New Jersey is the right market for your business. Talk to a member of the team about what your group actually needs, and use the crossover calculator to see where the numbers land for you.
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 New Jersey, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Common questions about moving from an EOR in New Jersey
What tax rate will my new New Jersey entity pay?
Your entity pays corporate income tax of up to 9.0% under the CBT-100 filing rules, or at least a minimum tax set by gross receipts. The 2.5% Corporate Transit Fee applies only where taxable net income tops $10 million, so model both before you file.
How much does it cost to register a business entity in New Jersey?
The New Jersey Division of Revenue charges a formation fee of $100 to register your entity. This covers registration itself, not the ongoing corporate tax or surcharge obligations that follow once the entity is operating.
Do I need to pay New Jersey's Corporate Transit Fee if I already pay corporate income tax?
Only if your taxable net income is over $10 million. The Division of Taxation applies the 2.5% fee for tax years 2024 to 2028, on top of the Corporation Business Tax, and not to New Jersey S corporations. Under an EOR, your provider handles this as part of their compliance, once you own the entity, it becomes your filing responsibility.
How do I know when it's time to move from an EOR to my own entity in New Jersey?
There's no set headcount that makes this decision for you, it depends on salaries, how long you plan to keep hiring in New Jersey, and how much control you want over benefits and payroll. Run your specific numbers through the crossover calculator rather than guessing.
Will Teamed handle the entity setup for me in New Jersey?
Yes, Teamed's GEMO service registers the entity, handles the tax setup, and migrates your employees in without a coverage gap.
Where these figures come from
Sources
These figures are drawn from the New Jersey Division of Taxation's CBT-100 return instructions and Corporate Transit Fee guidance, and from the New Jersey Division of Revenue's registration guidance.
The Corporate Transit Fee comes from a separate New Jersey Division of Taxation page.
Looking for a job in New Jersey 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.
AI tools helped create this guide. How we use AI