--- title: "Moving From an EOR to Your Own Entity in North Carolina" description: "Learn how to move from an EOR to your own entity in North Carolina, covering registration, tax rates, and how Teamed's GEMO service helps." canonical: https://www.teamed.global/country-hiring-guides/united-states/north-carolina/moving-from-eor-to-your-own-entity --- ![North Carolina business district.](/cluster-assets/country-hiring-guides/united-states/north-carolina/moving-from-eor-to-your-own-entity/images/hero.webp) # How do you move from an EORto your own entity in North Carolina. In North Carolina, Teamed sets up your own entity, migrates your employees, and hands you a fully compliant company, no EOR needed. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · North Carolina guide At a glance ## North Carolina entity setup, the numbers that matter Filing Articles of Organization with the North Carolina Secretary of State costs $125. Once formed, your entity pays corporate income tax at a flat 2.0% rate and a franchise tax with a $200 minimum, calculated on a margin basis. Those figures replace whatever the EOR was quietly absorbing into your monthly invoice. Corporate income tax2.0% Minimum franchise tax$200 Franchise tax basismargin Formation / registration fee$125 The move ## Why companies outgrow an EOR in North Carolina An employer of record works well when you need someone hired fast and legally, without spinning up a company first. But as your North Carolina team grows, you start wanting things an EOR structure was not built to give you: direct control over benefits design, your own IP assignment terms, a local bank relationship, and a company name your customers recognize as the actual employer. That shift is not a sign the EOR failed. It is a sign the business changed shape. Teamed treats that transition as a normal next step, not a breakup, and builds the entity around the team you already have on the ground. Formation ## Setting up your own entity in North Carolina Forming a North Carolina entity means filing with the Secretary of State, most commonly Articles of Organization for an LLC, which carries a $125 filing fee. You will also need a registered agent with a North Carolina address, an EIN from the IRS, and state tax registrations before you can legally run payroll. None of that is exotic, but it has to happen in the right order. Teamed sequences the filing, the tax registrations, and the payroll setup so your employees never sit in limbo between the old EOR contract and the new entity. Ongoing tax exposure ## Corporate income tax and franchise tax once you own the entity Once you have your own North Carolina entity, the state taxes it directly instead of taxing it through an EOR's existing registration. Corporate income tax sits at a flat 2.0% of net income, and separately, franchise tax applies on a margin basis with a $200 minimum, due even in a year where the entity barely turns a profit. These are not fees Teamed invented or marks up. They are what North Carolina charges any registered entity, and an EOR was paying an equivalent through its own structure the whole time, just folded into your service cost. Timing the move ## When the switch actually makes sense There is no fixed headcount where an EOR stops making sense and your own entity starts. It depends on salary levels, how many people you employ in North Carolina, and how long you plan to keep operating there. A small, stable team can sit comfortably under an EOR for years without the math ever tipping toward setting up an entity. Rather than guess, run the numbers through the crossover calculator, which weighs your actual payroll against the ongoing cost of registration, tax filings, and compliance in North Carolina. Before you commit ## Sometimes an employer of record is the better fit An employer of record is sometimes the right long-term answer, not a stepping stone you are obligated to leave. If your North Carolina headcount is small, still changing shape, or you are testing whether the market works for you at all, staying on an EOR can be the more sensible, lower-risk choice. Talk to a member of the team about your specific situation, or run the numbers through the crossover calculator before deciding either way. 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 North Carolina, that means Teamed's Global Entity and Employment Operations team, which we call GEMO, files your Articles of Organization and registers you for corporate income tax and franchise tax. Then we move your existing employees onto the new entity's payroll without a gap in their pay or benefits. Across 100+ countries, the same team handles the equivalent local steps, so the process looks the same wherever your next entity needs to exist. 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 North Carolina Questions ## Common questions about moving off an EOR in North Carolina What does it cost to register a company in North Carolina? Filing Articles of Organization with the North Carolina Secretary of State costs $125. That covers the state filing itself, not registered agent fees or the tax registrations you will still need to complete before running payroll. What tax rate will my new North Carolina entity pay on its profits? North Carolina applies a flat corporate income tax rate of 2.0% to net income. This applies to the entity directly once it is registered, replacing whatever equivalent cost was built into your EOR arrangement. Do I still owe tax if my North Carolina entity is not profitable yet? Yes. North Carolina charges a franchise tax calculated on a margin basis, with a minimum of $200, which can apply even when the entity has little or no profit in a given year. How do I know when it makes sense to stop using an EOR in North Carolina? There is no set headcount trigger. It depends on your salary levels and how long you intend to keep operating in North Carolina, so run those numbers through the crossover calculator rather than guessing. Can Teamed handle the whole move from EOR to my own North Carolina entity? Yes, through GEMO, Teamed's Global Entity and Employment Operations service. It files the entity, sets up the tax registrations, and migrates your employees across without a break in employment. Where these figures come from ## Sources The figures on this page are drawn from the North Carolina Department of Revenue and the North Carolina Secretary of State. ## More on entities in North Carolina - [Hiring in North Carolina, overview](/country-hiring-guides/united-states/north-carolina)parent - [North Carolina setting up](/country-hiring-guides/united-states/north-carolina/entity-setup)sibling - [North Carolina running costs](/country-hiring-guides/united-states/north-carolina/entity-running-costs-and-filings)sibling - [North Carolina tax presence](/country-hiring-guides/united-states/north-carolina/permanent-establishment-risk)sibling - [North Carolina entity or eor](/country-hiring-guides/united-states/north-carolina/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 North Carolina](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA