--- title: "Moving From an EOR to Your Own Entity in Texas" description: "How to move employees from an EOR to your own Texas entity, what the state charges, and when Teamed's GEMO service handles the handover for you." canonical: https://www.teamed.global/country-hiring-guides/united-states/texas/moving-from-eor-to-your-own-entity --- ![Texas business district.](/cluster-assets/country-hiring-guides/united-states/texas/moving-from-eor-to-your-own-entity/images/hero.webp) # How do you move froman EOR to your own entity in Texas. You transition employees from Teamed's EOR to your own Texas entity through a structured handover, Teamed keeps payroll running while you register the company and hire directly. Served by Teamed US Inc., Delaware · Payroll via SUNA Solutions Last reviewed 22 September 2026 · Texas guide At a glance ## Texas entity setup, in brief Texas charges a formation fee of $300 to register a new entity with the Secretary of State. Once formed, the entity owes franchise tax calculated on margin, with a minimum franchise tax of $0. There's no personal service beyond that filing and the ongoing franchise tax return. Minimum franchise tax$0 Franchise tax basismargin Formation / registration fee$300 Why move ## Why companies outgrow their Texas EOR An EOR is the right tool while you're testing Texas as a market or hiring your first handful of people there. Once your Texas team grows and stays, direct employment often makes more sense, since you gain full control over benefits design, equity plans, and how you manage the relationship day to day. The right time to move depends on your headcount, salary levels, and how long you plan to stay in Texas, not a fixed number of hires. Rather than guess, run the numbers through the crossover calculator, it compares your current EOR cost against the cost of running your own entity. The process ## How the move from EOR to entity works in Texas The move happens in stages, not overnight. You form the entity with the Texas Secretary of State, get your new employer identification sorted, and set up state tax registrations before a single contract changes hands. Once the entity exists, employment contracts transfer from the EOR to your new Texas company, payroll moves to your own systems or provider, and benefits get re-enrolled under the new employer. Teamed sequences this so employees see no gap in pay or coverage during the switch. Costs to expect ## What a Texas entity costs to run Forming a Texas entity carries a $300 registration fee through the Secretary of State. After that, the entity files franchise tax based on its margin, and the minimum franchise tax owed is $0, so a small or early-stage entity may not owe anything at all in a given year. Beyond the state fees, budget for the practical costs of running your own employer, payroll processing, benefits administration, and any local counsel you bring in for contracts. Those costs vary by provider and headcount, so they're not something Teamed will put a fixed number on here. The honest answer ## When an EOR is still the right call in Texas Moving to your own entity isn't automatically the better move. For a small or still-changing team, or while you're still testing whether Texas is the right long-term market, staying on an EOR is a fair choice, not a lesser one. An employer of record is sometimes genuinely the better answer, and Teamed will tell you so directly rather than push you toward an entity you don't need yet. Talk to a member of the team about your specific plans, or run your numbers through the crossover calculator first. How Teamed helps ## Your own entity, when it's time. We set it up, migrate you in, and hand it back intact. When you're ready, Teamed's Global Entity and Employment Operations service, which we call GEMO, handles the whole transition. We form the Texas entity, run the payroll and compliance setup, and migrate your employees over without breaking their pay, benefits, or contracts along the way. In Texas that means managing the Secretary of State filing, getting the entity ready for franchise tax reporting on margin, and transferring your employees cleanly once it's live. GEMO works the same way across 100+ countries, so if Texas is one part of a bigger footprint, you get one consistent handover process everywhere. Before you commit ## Sometimes an employer of record is the better fit An employer of record is sometimes genuinely the better answer, and Teamed will tell you so directly rather than push you toward an entity you don't need yet. Talk to a member of the team about your specific plans, or run your numbers through the crossover calculator first. 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 Texas that means managing the Secretary of State filing, getting the entity ready for franchise tax reporting on margin, and transferring your employees cleanly once it's live. GEMO works the same way across 100+ countries, so if Texas is one part of a bigger footprint, you get one consistent handover process everywhere. 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 Texas Questions ## Questions about moving from an EOR to your own entity in Texas What does it cost to register a company in Texas? The Texas Secretary of State charges a formation fee of $300 to register a new entity. That covers the filing itself, separate from any ongoing franchise tax obligations once the entity is active. How is the Texas franchise tax calculated? Texas franchise tax is calculated on a company's margin rather than a flat rate on revenue or income. The minimum franchise tax owed is $0, so smaller or lower-margin entities may end up owing nothing in a given filing year. Do I need to pay franchise tax right away after forming my entity? Your entity owes franchise tax based on its margin once it's operating, but the minimum franchise tax is $0. Whether you owe more than that depends on how the entity performs, not on the act of forming it. How long does it take to move employees from an EOR to my own Texas entity? Timelines depend on how many employees are moving and how their current contracts are structured, so Teamed won't quote a fixed number here. What matters is sequencing the entity formation, tax registration, and contract transfer so nobody's pay or benefits lapse. When should I use an EOR instead of setting up my own entity in Texas? An EOR makes sense while your Texas team is still small or you're testing the market before committing. If you're unsure whether you've reached the point where your own entity pays off, the crossover calculator or a conversation with the team will give you a clearer answer than guessing. Where these figures come from ## Sources Figures on this page come from the Texas Comptroller for franchise tax and the Texas Secretary of State for the formation and registration fee. ## More on entities in Texas - [Hiring in Texas, overview](/country-hiring-guides/united-states/texas)parent - [Texas setting up](/country-hiring-guides/united-states/texas/entity-setup)sibling - [Texas running costs](/country-hiring-guides/united-states/texas/entity-running-costs-and-filings)sibling - [Texas tax presence](/country-hiring-guides/united-states/texas/permanent-establishment-risk)sibling - [Texas entity or eor](/country-hiring-guides/united-states/texas/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 Texas](https://www.teamed.global/contact?from=moving-from-eor-to-your-own-entity)CTA