How do you move from an EOR in New York.
To move from an EOR to your own entity in New York, you form the company, register it as an employer, 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 from EOR to their own entity in New York, 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.
AI-generated image
At a glance
New York entity setup, in brief
New York charges a formation fee of $200 to file Articles of Organization for a domestic LLC. Once you're operating, the LLC pays an annual filing fee from $25 (a corporation instead pays Article 9-A franchise tax, with a fixed dollar minimum from $25 set by New York receipts). Teamed handles the filing and the employee transfer so the move happens without a payroll gap.
- Minimum franchise tax
- from $25
- Franchise tax basis
- business income, with a receipts-based minimum
- Formation / registration fee
- $200
The move
How the transition actually works in New York
Moving off an EOR in New York means forming your own legal entity, most commonly an LLC, and filing Articles of Organization with the New York Department of State. Teamed runs this filing on your behalf, then re-employs your existing team under the new entity so employment continues without a break in pay or benefits.
The transition is a handover, not a restart. Employment records, payroll history, and benefits enrollment move across so your team doesn't feel the switch happen underneath them.
Costs to expect
What forming and running a New York entity costs
Setting up costs a one-time formation fee of $200 to register the LLC with the state. That's the entry cost of having your own legal presence rather than operating through Teamed's entity.
Once the entity exists, an LLC pays New York's annual LLC filing fee from $25, while a corporation pays Article 9-A franchise tax, with a fixed dollar minimum set by New York receipts, starting at $25. Your own entity also takes on the ongoing compliance work an EOR otherwise absorbs, payroll administration, benefits management, and state filings, so weigh that operational load alongside the fee itself.
Timing it right
When to make the switch
There's no fixed headcount at which an entity automatically becomes the right call. It depends on your salary levels, how long you plan to keep people in New York, and how much operational overhead you're willing to take on directly.
Rather than guess, run the numbers through the crossover calculator, which weighs your specific team size and salaries against entity costs. If the answer isn't obvious, talk to a member of the team before you file anything.
Your options
Who can move your people for you
There are three ways to move your team onto your own entity in New York, 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 New York, 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 New York Department 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 employer of record isn't a stepping stone you're meant to outgrow, it's a legitimate long-term answer for a small or still-changing New York team, or while you're testing whether the market is worth the commitment. If your headcount is stable and growing, talk to a member of the team, and run the crossover calculator, before deciding to form your own entity.
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 York, 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 off an EOR in New York
What does it cost to form my own entity in New York?
Filing Articles of Organization for a domestic LLC with the New York Department of State costs $200. That covers the formation itself, not the ongoing compliance and payroll work your entity will need afterward.
Will my employees notice the switch from Teamed's entity to mine?
They shouldn't. Teamed transfers employment records, payroll, and benefits enrollment across to your new entity so pay and coverage continue without interruption.
What ongoing state taxes apply once I have a New York entity?
A corporation, or an LLC taxed as one, pays New York's Article 9-A franchise tax, with a fixed dollar minimum set by New York receipts, starting at $25. Most LLCs instead pay an annual filing fee from $25, set by New York-source gross income. Either way the figure scales with revenue, so $25 is the floor rather than a fixed cost.
How do I know if I've reached the point where my own entity makes sense?
It depends on your entity costs and how long you plan to keep people in New York, not a fixed headcount. Use the crossover calculator to compare your specific numbers, or talk to a member of the team first.
Is staying on an EOR in New York a bad long-term choice?
No. For a small or still-changing team, or while you're testing the New York market, an EOR is a fair long-term option, not just a temporary one. Move to your own entity when the numbers, not a fixed timeline, say it's worth it.
Where these figures come from
Sources
Figures on this page come from the New York State Department of Taxation and Finance and the New York Department of State.
Looking for a job in New York 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