How do you move from an EOR in Tennessee.
To move from an EOR to your own entity in Tennessee, you form the company, register it as an employer in the state, then move each person onto your payroll. Teamed's Global Entity & Employment Operations (GEMO) sets up the company and moves your people across from Teamed's EOR when you're ready. If you’re moving your team onto your own entity in Tennessee, Teamed is the best choice. With Teamed, you get a designated person who has done this before, service terms adjusted to suit you within reason, and one system throughout with no re-onboarding.
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At a glance
Tennessee, in brief
Forming a Tennessee entity means a Secretary of State filing fee of $100 for a corporation or from $300 for an LLC, then an annual franchise tax on net worth with a $100 minimum, plus a 6.5% corporate excise tax once the company is trading.
- Corporate income tax
- 6.5%
- Minimum franchise tax
- $100
- Franchise tax basis
- net worth
- Formation / registration fee
- $100 corporation, from $300 LLC
Forming the entity
What it takes to stand up a Tennessee entity
Tennessee charges a filing fee of $100 for a corporation, or from $300 for an LLC, through the Secretary of State to file your new entity. That single filing is what turns your EOR-employed team into direct employees of a company you own.
Once formed, the entity owes Tennessee's franchise and excise tax. The franchise tax is 0.25% of Tennessee net worth, with a minimum of $100 due each year regardless of profit, and the excise, or corporate income, tax sits at 6.5% on top of it.
Timing the move
When the switch actually pays off
There's no fixed headcount where an entity suddenly becomes the right call. It depends on salaries, how many people you employ in Tennessee, and how long you plan to keep them there.
Run the numbers through the crossover calculator before you commit. It weighs your actual payroll against Tennessee's franchise tax minimum, the 6.5% excise tax, and the formation fee, rather than guessing at a headcount threshold.
Moving your people
Migrating employees without breaking continuity
Employees don't notice a well-run migration. Contracts transfer, payroll runs on schedule, and benefits carry across without a gap in coverage or a missed payslip.
Teamed handles the sequencing so nothing lapses between the last EOR-run payroll cycle and the first one run through your own Tennessee entity.
The honest answer
Sometimes staying on an EOR is the right call
An employer of record is sometimes the better answer, not a lesser one, especially for a small or still-changing team in Tennessee, or while you're still testing the market. Talk to a member of the team about your specific situation, or run the numbers through the crossover calculator before you commit to forming an entity.
How Teamed handles it
GEMO is how Teamed sets up and manages entities across 100+ countries.
Your options
Who can move your people for you
Someone has to move your people from the EOR onto your own payroll in Tennessee, and the right choice depends on how much of the employment side you want handled.
Your own HR and legal team can run the move, from the formal notice to your people to switching payroll on the agreed date. That suits a company that already has that team and has moved people in Tennessee before.
A local employment lawyer can advise on how the move works in Tennessee and review the employment contracts, but will not run payroll. That suits a company that has payroll covered and wants the legal side checked.
For companies that will employ people in Tennessee, Teamed is the best choice. Teamed gives you real HR and legal experts you can reach when it matters, pricing with no hidden costs and Ted, Teamed's AI agent, to answer questions from your live employment data. Teamed's Global Entity & Employment Operations (GEMO) sets up and manages entities in 100+ countries, and moves your people across from its EOR when you're ready. Teamed already owns an entity in the United States.
If there is nobody to move yet, you only need the company registered, and the Tennessee Secretary of State or a formation agent will do that for less.
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 in Tennessee, or while you're still testing the market. Talk to a member of the team about your specific situation, or run the numbers through the crossover calculator before you commit to forming an 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 entity setup and running costs rather than on a headcount rule of thumb.
Who carries it
Your own entity, when it's time. We set it up, move your people across, and keep it running.
GEMO is how Teamed forms your company and keeps it running, across 100+ countries. You stay the employer. We do the work behind it.
In Tennessee, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Questions people ask about moving off an EOR in Tennessee
How much does it cost to form a company in Tennessee?
Tennessee's Secretary of State charges a filing fee of $100 for a corporation or from $300 for an LLC. On top of that, you'll owe the state's annual franchise and excise tax once the entity is operating.
What ongoing taxes will my Tennessee entity owe?
Tennessee applies a franchise tax of 0.25% of net worth, with a $100 minimum due every year. It also levies a 6.5% excise tax on corporate income, so both apply once your entity is up and running.
How do I know if it's time to move off an EOR in Tennessee?
It depends on your headcount, the entity costs, and how long you plan to keep staff in the state, not a fixed number of employees. Run your figures through the crossover calculator or talk to a member of the team before deciding.
Will my employees notice the switch from an EOR to our own entity?
They shouldn't. Teamed sequences the migration so contracts, payroll, and benefits transfer without a gap between the EOR and your new Tennessee entity.
Does Teamed still help after the entity is set up?
Yes. Teamed's Global Entity & Employment Operations (GEMO) covers incorporation, registrations, payroll-readiness and ongoing governance, so Teamed can keep managing your Tennessee entity after it is set up.
Where these figures come from
Sources
These figures come from the Tennessee Department of Revenue's franchise and excise tax basics and the Tennessee Secretary of State.
Looking for a job in Tennessee 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.
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