Entity or EORfor hiring in Utah.
Teamed hires your Utah team through its own entity today, so you skip incorporation, payroll setup, and the $59 filing fee entirely.
At a glance
Utah entity costs versus hiring through Teamed
Registering a Utah entity means filing with the Division of Corporations and Commercial Code for $59, then carrying a 5.0% corporate income tax and a $100 minimum franchise tax every year regardless of profit. Hiring through Teamed's existing entity means none of that touches you, you get an employee on payroll without opening a filing, a tax account, or a registered agent relationship.
- Corporate income tax
- 5.0%
- Minimum franchise tax
- $100
- Formation / registration fee
- $59
Forming a Utah entity
The paperwork behind a Utah LLC or corporation
Setting up your own presence in Utah starts with the Division of Corporations and Commercial Code, where the registration fee is $59. That gets you formed, but it does not get you hiring, you still need a registered agent, articles filed correctly, a state tax account, and payroll infrastructure before a single employee can start.
Once formed, the entity owes Utah's 5.0% corporate income tax on profits, and a minimum franchise tax of $100 applies even in a year with no profit at all. That minimum tax is worth planning for, it turns up whether the entity is actively hiring or sitting dormant while you decide your next move.
What EOR skips
What hiring through Teamed removes from that list
Teamed already holds the entity, the registered agent relationship, and the tax registrations in Utah. You never file the $59 registration, never track the 5.0% corporate income tax, and never carry the $100 minimum franchise tax on a shell you are not yet using at scale.
The practical effect is speed. Instead of waiting on state processing and standing up payroll from scratch, your Utah hire can start once contracts and onboarding are done, with Teamed handling the compliance machinery in the background.
Making the call
How to decide between the two paths
The right answer depends on salaries, headcount trajectory, and how long you intend to keep people in Utah, not on a fixed number of hires. A small team testing the market usually favors EOR, a large stable payroll usually favors owning the entity outright.
Rather than guess at a crossover point, run your actual numbers through the crossover calculator, it accounts for the $100 minimum franchise tax and the 5.0% corporate income tax alongside your real salary figures to show where entity costs overtake EOR fees.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer for Utah, not a lesser one, especially for a small or still-changing headcount or when you are testing the market before committing. Talk to a member of the team about your specific situation, or run the numbers yourself through 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 Utah that means we absorb the $59 registration, the 5.0% corporate income tax filings, and the $100 minimum franchise tax while you hire through our existing setup, then transfer a fully compliant entity to you the moment it makes sense, across the same 100+ countries wherever your team grows next.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Utah entity and EOR questions
How much does it cost to register a company in Utah?
The Utah Division of Corporations and Commercial Code charges a $59 registration fee to form an entity. That covers formation only, ongoing costs like the corporate income tax and minimum franchise tax start once the entity exists.
Do I owe Utah tax even if my new entity isn't profitable yet?
Yes. Utah applies a minimum franchise tax of $100 regardless of profit, so a dormant or early-stage entity still owes it. Profitable entities pay the 5.0% corporate income tax on top of that minimum.
Can Teamed hire someone in Utah without me forming an entity?
Yes, that is the point of an EOR. Teamed's existing entity handles the employment relationship, payroll, and Utah compliance, so you avoid the $59 registration and the ongoing tax filings while you hire.
When should I switch from EOR to my own Utah entity?
It depends on your salary levels and how long you plan to keep staff in Utah, not a fixed headcount. Run your numbers through the crossover calculator to see where the 5.0% corporate income tax and $100 minimum franchise tax outweigh EOR fees.
What happens if I already have a Utah entity and want to hand it to Teamed's GEMO setup?
Teamed can migrate an existing Utah entity into its GEMO structure and manage the compliance around the 5.0% corporate tax and $100 minimum franchise tax on your behalf. When you are ready to take it back, the entity transfers to you intact.
Where these figures come from
Sources
Figures on this page come from the Utah State Tax Commission and the Utah Division of Corporations and Commercial Code.
Looking for a job in Eor Vs 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.