How do you movefrom an EOR in Tennessee.
You form a Tennessee entity, migrate employees off the EOR payroll, and Teamed hands over a compliant, fully operational company.
At a glance
Tennessee, in brief
Forming a Tennessee entity means a $300 formation and registration fee with the Secretary of State, then an annual franchise tax on margin 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
- margin
- Formation / registration fee
- $300
Forming the entity
What it takes to stand up a Tennessee entity
Tennessee charges a formation and registration fee of $300 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 calculated on margin, with a minimum of $100 due each year regardless of how thin that margin is, 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 $300 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
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 builds and hands over entities across 100+ countries. We form the company, move your Tennessee team onto its payroll, and stay involved until everything runs cleanly on your own books.
In Tennessee that means filing the entity with the Secretary of State, registering for franchise and excise tax, and making sure the $100 minimum franchise tax and 6.5% excise tax are built into your ongoing compliance calendar before we step back.
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 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 Tennessee that means filing the entity with the Secretary of State, registering for franchise and excise tax, and making sure the $100 minimum franchise tax and 6.5% excise tax are built into your ongoing compliance calendar before we step back.
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 formation and registration fee of $300. 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 calculated on margin, 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 salaries, headcount, 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. Through GEMO, Teamed stays involved until your Tennessee entity runs cleanly on its own, covering the formation filing and getting the franchise and excise tax obligations built into your compliance routine.
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 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.