--- title: "Moving from an EOR to Your Own Entity in Pennsylvania" description: "How to move from an EOR to your own Pennsylvania entity, covering formation costs, corporate tax, and how Teamed's GEMO service handles the switch." canonical: https://www.teamed.global/country-hiring-guides/united-states/pennsylvania/moving-from-eor-to-your-own-entity --- ![Pennsylvania business district.](/cluster-assets/country-hiring-guides/united-states/pennsylvania/moving-from-eor-to-your-own-entity/images/hero.webp) # How do you movefrom an EOR in Pennsylvania. Teamed sets up your Pennsylvania entity, migrates your employees onto it, and hands you full ownership once it's running smoothly. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Pennsylvania guide At a glance ## Pennsylvania entity setup, in brief Forming a Pennsylvania LLC costs $125 to register with the Pennsylvania Department of State, and once you're trading through your own entity, Pennsylvania taxes corporate net income at 7.49%. Teamed handles both the paperwork and the employee migration so you don't have to learn Pennsylvania's filing process from scratch. Corporate income tax7.49% Formation / registration fee$125 Why move ## Why companies move off an EOR in Pennsylvania Most teams start with an employer of record because it lets them hire in Pennsylvania without registering a company first. Once the team grows, or the company plans to stay in the state for years, the economics shift toward owning the entity directly. Running your own entity gives you direct control over benefits, equity plans, and how you structure the local team. It also removes the EOR service fee from every payroll cycle, though it adds the responsibility of running compliance yourself. Formation ## What it takes to register a Pennsylvania entity Setting up a Pennsylvania LLC means filing with the Pennsylvania Department of State, which charges a $125 registration fee. You'll also need a registered office in the state, an operating agreement, and an EIN before you can run payroll through the new entity. The filing itself is straightforward, but the harder part is timing it so your existing EOR-employed staff move across without a gap in pay, benefits, or work authorization. Teamed builds the entity and the migration plan together, so the two line up. Tax exposure ## What changes on the tax side Once you're operating through your own Pennsylvania entity, the state taxes corporate net income at 7.49%, on top of whatever federal corporate tax applies. That's a real cost you don't carry as directly under an EOR arrangement, where the EOR entity absorbs local corporate filings. Before you commit to the switch, it's worth modeling what that tax rate does to your margins at your actual headcount and salary levels, not just in the abstract. Teamed's crossover calculator gives you a real answer based on your own numbers rather than a rule of thumb. Migration ## How the handover actually works The mechanics matter more than the paperwork. Employees need to move from the EOR's payroll to your new entity's payroll without a break in continuous employment, benefits, or tax withholding. Teamed runs this as a project with a fixed sequence, entity formation, state tax registrations, benefits setup, and a coordinated cutover date where employment moves from the EOR contract to your direct contract. Nothing runs in parallel for longer than it has to. Before you commit ## Sometimes an employer of record is the better fit An employer of record is often the right call for longer than people expect, not just a stopgap. If your Pennsylvania headcount is still small, or you're testing whether the market works for you before committing capital, staying on an EOR keeps you flexible without the cost of owning an entity you might not need long-term. Talk to a member of the team about where you actually stand, or run the numbers yourself in the crossover calculator. 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. Teamed's Global Entity and Employment Operations, which we call GEMO, forms your Pennsylvania entity, migrates your employees onto it, and manages the state registrations along the way. You keep operating with Teamed as the back office during the transition, then take the entity fully in-house once it's running, with the same support available across 100+ countries wherever else you hire. 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 Pennsylvania Questions ## Pennsylvania EOR-to-entity questions How much does it cost to register an entity in Pennsylvania? The Pennsylvania Department of State charges $125 to register an LLC. That's the registration fee itself, and you should budget separately for registered agent, legal, and payroll setup costs on top of it. What corporate tax rate applies once I have my own Pennsylvania entity? Pennsylvania taxes corporate net income at 7.49%, per the Pennsylvania Department of Revenue's corporate net income tax rules. That applies to your entity directly, whereas under an EOR arrangement the EOR's entity carries that filing. When should I move from an EOR to my own Pennsylvania entity? It depends on your salaries, headcount, and how long you plan to stay in Pennsylvania, not a fixed number of employees. Run the crossover calculator with your own figures, or talk to a member of the team before deciding. Will my employees notice the switch from EOR to our own entity? They shouldn't, if the migration is planned properly. Pay, benefits, and start dates carry across, and the only real change is which entity's name is on the contract. Can Teamed handle the entity setup and the employee migration together? Yes, that's what GEMO is built for. Teamed forms the Pennsylvania entity, handles the state registrations, and migrates employees onto it, then hands the entity to you fully operational. Where these figures come from ## Sources These figures come from the Pennsylvania Department of Revenue's corporate net income tax instructions and the Pennsylvania Department of State's LLC registration information. ## More on entities in Pennsylvania - [Hiring in Pennsylvania, overview](/country-hiring-guides/united-states/pennsylvania)parent - [Pennsylvania setting up](/country-hiring-guides/united-states/pennsylvania/entity-setup)sibling - [Pennsylvania running costs](/country-hiring-guides/united-states/pennsylvania/entity-running-costs-and-filings)sibling - [Pennsylvania tax presence](/country-hiring-guides/united-states/pennsylvania/permanent-establishment-risk)sibling - [Pennsylvania entity or eor](/country-hiring-guides/united-states/pennsylvania/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 Pennsylvania](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA