EOR or your own entityin North Carolina.
Teamed hires your North Carolina team under its own entity now, so you skip registration and franchise tax filings while you decide.
At a glance
North Carolina in brief
North Carolina charges corporate income tax at 2.0% and a minimum franchise tax of $200, calculated on a margin basis. Forming an LLC through Articles of Organization costs $125 at the Secretary of State. Those figures are the baseline any employer weighs against Teamed's EOR fee before choosing how to hire.
- Corporate income tax
- 2.0%
- Minimum franchise tax
- $200
- Franchise tax basis
- margin
- Formation / registration fee
- $125
The entity route
What forming a North Carolina entity actually involves
Registering an LLC in North Carolina means filing Articles of Organization with the Secretary of State and paying the $125 fee. That gets you a legal entity, but not a functioning payroll operation. You still need a registered agent, a state tax account, workers' compensation coverage, and someone who understands North Carolina's specific filing calendar.
Once the entity exists, it owes corporate income tax at 2.0% on net income and a minimum franchise tax of $200, assessed on a margin basis rather than flat revenue. Franchise tax applies whether or not the entity turns a profit in its first year, so budgeting for it from day one matters.
None of this is unusual for a US state, and North Carolina's fees sit on the lower end. The real cost is time. Between formation, registered agent setup, payroll registration, and benefits enrollment, most employers need several weeks before the first paycheck can go out cleanly.
The EOR route
What Teamed's EOR path skips entirely
Teamed already holds a North Carolina entity in good standing, with its franchise tax and corporate income tax filings current. When you hire through Teamed, your employee joins Teamed's payroll under that existing structure, and you never touch the $125 formation fee or the $200 minimum franchise tax yourself.
This is the whole point of an EOR: you get a compliant employer of record on day one instead of a multi-week formation project. Teamed handles the state registrations, the payroll tax deposits, and the annual franchise tax return, so your North Carolina hire starts working without your business owning any of that paperwork.
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 team, or when you're testing whether North Carolina is even the right market. Talk to a member of the team about your specific plan, and if you want the numbers side by side, run the crossover calculator, since the right call depends on salaries and how long you intend to stay.
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 North Carolina, that means Teamed can register your own LLC or corporation, transfer the employment relationship over from its EOR structure, and leave you holding a clean entity with its own $125 filing history and franchise tax account, not a half-finished project. Global Entity and Employment Operations, which we call GEMO, exists so the switch from EOR to owned entity happens on your timeline, across 100+ countries, with no gap in payroll for your team.
They set up our EU entity and moved hires across without missing a payroll.
Questions
North Carolina EOR and entity questions
Is North Carolina's franchise tax charged even if my entity loses money?
Yes. North Carolina applies a minimum franchise tax of $200 regardless of profitability, and the tax is calculated on a margin basis rather than flat revenue. This is separate from the 2.0% corporate income tax, which only applies to net income.
How much does it cost to register an LLC in North Carolina?
Filing Articles of Organization with the North Carolina Secretary of State costs $125. That fee covers formation only, not registered agent service, payroll tax registration, or workers' compensation coverage, which you'll need separately before hiring.
Can Teamed hire someone in North Carolina without me forming an entity?
Yes. Teamed employs your North Carolina hire under its own existing entity, so you skip the $125 formation fee and the ongoing franchise and corporate income tax filings entirely while your team stays small or your plans stay flexible.
When does it make sense to switch from EOR to my own North Carolina entity?
It depends on your headcount, salary levels, and how long you plan to stay in the state, not a fixed employee count. Run the crossover calculator or talk to a member of the team to weigh the ongoing franchise tax and compliance work against Teamed's EOR fee.
Does North Carolina's corporate income tax rate affect EOR pricing?
No. Teamed's EOR fee is separate from North Carolina's 2.0% corporate income tax, which applies only to entities that own net income directly. Under an EOR arrangement, Teamed's entity carries that tax obligation, not your business.
Where these figures come from
Sources
Figures on this page come from the North Carolina Department of Revenue's corporate income and franchise tax rate guidance and the North Carolina Secretary of State's Articles of Organization form (L-01).
Looking for a job in Eor Vs Entity 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.