How do you movefrom an EOR in Rhode Island.
Teamed forms your Rhode Island entity, transfers employees onto its payroll, then hands you full control, with no gap in pay or benefits.
At a glance
What moving off an EOR in Rhode Island looks like
Rhode Island charges a formation fee of $150 to file Articles of Organization with the Secretary of State, then taxes corporate income at 7.0% with a minimum franchise tax of $400 due each year regardless of profit. Teamed walks you through each step and keeps payroll running while your entity comes online.
- Corporate income tax
- 7.0%
- Minimum franchise tax
- $400
- Formation / registration fee
- $150
Why teams move
Why companies outgrow an EOR in Rhode Island
An employer of record is built for speed. It gets a hire on payroll fast, with none of the paperwork a new entity demands. But once a team grows, or a company decides Rhode Island is a market it wants to stay in for the long run, the calculation changes. Owning the entity means direct control over benefits design, equity plans, and how the local team reports up.
The move itself is not a leap. It is a controlled handover. Teamed keeps employment continuous while the new entity is formed, registered, and made ready to receive staff, so nobody experiences a break in pay, benefits, or their employment record.
Setting up in Rhode Island
What forming your own entity in Rhode Island involves
Setting up in Rhode Island starts with filing Articles of Organization with the Rhode Island Secretary of State on Form 400, which carries a formation fee of $150. Once the entity exists, it becomes subject to Rhode Island's corporate income tax of 7.0%, with a minimum franchise tax of $400 owed every year even in a year with no profit.
None of this is complicated on its own, but it stacks up alongside registered agent duties, state tax accounts, and payroll setup. Teamed handles the formation, the tax registrations, and the employee transfer as one coordinated project, so your team in Rhode Island never notices the switch happening underneath them.
The honest answer
An employer of record is not a lesser choice
Owning an entity is not automatically the smarter move. For a small or still-changing team, or while you are testing whether Rhode Island is even the right market, staying on an employer of record keeps things simple and reversible.
GEMO
Your own entity, when it's time. We set it up, migrate you in, and hand it back intact.
Teamed calls this service Global Entity and Employment Operations, which we call GEMO. It covers entity formation, tax registration, and the employee transfer itself, run the same disciplined way across 100+ countries, so a Rhode Island entity gets the same careful handover as one anywhere else.
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 group of hires or while you are testing a new market before committing. Talk to a member of the team about where Rhode Island fits into your plans, or run the numbers yourself with 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.
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 Rhode Island that means Teamed manages the Form 400 filing, the ongoing franchise tax and corporate income tax obligations, and the employee transfer, then hands you an entity that is fully yours to run.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Rhode Island EOR-to-entity questions
How much does it cost to form an entity in Rhode Island?
Filing Articles of Organization with the Rhode Island Secretary of State on Form 400 carries a formation fee of $150. Beyond that one-time filing, the entity owes Rhode Island's corporate income tax and its minimum franchise tax every year.
Does a Rhode Island entity owe tax even if it makes no profit?
Yes. Rhode Island sets a minimum franchise tax of $400 that applies regardless of whether the entity turns a profit that year. Profitable entities also pay corporate income tax at 7.0% on top of that minimum.
When does it make sense to move off an employer of record in Rhode Island?
It depends on how many people you employ there, what they earn, and how long you plan to stay in the state. The crossover calculator gives you a concrete comparison rather than a rule of thumb.
Will employees notice the switch from an EOR to our own entity?
They shouldn't. Teamed transfers employment onto the new entity's payroll without a break in pay or benefits, so the change happens administratively rather than disrupting anyone's day-to-day work.
Can Teamed set up the Rhode Island entity for us?
Yes. Teamed's GEMO service handles the formation filing, the tax registrations, and the employee transfer, then hands you an entity that is ready to operate under your own name.
Where these figures come from
Sources
Figures on this page come from the Rhode Island Division of Taxation - corporate tax and the Rhode Island Secretary of State - Form 400, Articles of Organization.
Looking for a job in Moving From Eor To Your Own 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.