How do you movefrom an EOR in New York.
In New York, Teamed forms your own LLC, files the Articles of Organization, and transfers your team from Teamed's entity to yours without disrupting payroll.
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, and once you're operating, the state's Article 9-A franchise tax applies a minimum of $25 based on gross receipts. Teamed handles the filing and the employee transfer so the move happens without a payroll gap.
- Minimum franchise tax
- $25
- Franchise tax basis
- gross receipts
- 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, New York applies its Article 9-A franchise tax, with a fixed dollar minimum of $25 assessed against gross receipts. 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.
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 salaries and employer costs rather than on a headcount rule of thumb.
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 New York, that means we file the Articles of Organization, register you for the state's franchise tax, and move your employees' records and payroll history across cleanly. We do this the same way across 100+ countries through Global Entity and Employment Operations, which we call GEMO, so the process feels the same wherever your team is.
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?
New York's Article 9-A franchise tax applies a fixed dollar minimum of $25, assessed against gross receipts. Your actual liability depends on your revenue, so this minimum 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 salary levels 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.
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