How do you move froman EOR to your own entity in Utah.
Teamed sets up your Utah entity, migrates your team's employment over, and hands you a compliant, fully operational company, no reset required.
At a glance
Utah entity setup, at a glance
Utah charges a formation and registration fee of $59 through the Division of Corporations and Commercial Code, taxes corporate income at 5.0%, and applies a minimum franchise tax of $100 even in a low-profit year. Those three figures shape most of the early cost conversation when a company considers moving off an EOR and running its own Utah entity.
- Corporate income tax
- 5.0%
- Minimum franchise tax
- $100
- Formation / registration fee
- $59
Why move
Why companies outgrow an EOR in Utah
An employer of record works well while a team is small or still finding its shape. As a Utah presence becomes a real, ongoing part of the business, some companies want the direct employment relationship, the local bank accounts, and the control over benefits design that only their own entity gives them.
There is no fixed headcount where this switch becomes obvious. It depends on salaries, how long you plan to keep people in Utah, and how much internal HR and payroll capacity you already have. The crossover calculator is built to answer that question with your own numbers rather than a rule of thumb.
The process
How the move from EOR to entity works in Utah
The mechanics are sequential rather than complicated. Teamed registers the Utah entity, prepares the payroll and benefits infrastructure it needs, and lines up the employment transfer so contracts move across without a break in service or a gap in pay.
Employees generally notice very little during the switch. Their day-to-day role, manager, and pay date stay the same, while the entity behind their paycheck changes from Teamed's EOR to the company's own Utah entity.
Costs and taxes
What it costs to run a company in Utah
Setting up the entity itself involves a formation and registration fee of $59, paid to the Utah Division of Corporations and Commercial Code. That is the baseline government cost of existing as a registered business in the state.
Once the entity is operating, Utah taxes corporate income at a flat 5.0% rate, and applies a minimum franchise tax of $100 regardless of profit, according to the Utah State Tax Commission's TC-20 instructions. Both of these run every year the entity stays open, so they belong in any ongoing budget comparison against staying on an EOR.
Timing
When the timing makes sense
The right time to move is rarely about a single trigger. It is a mix of team size, expected salaries, how long the company plans to keep a presence in Utah, and how much appetite there is for owning local compliance directly.
Rather than guessing, run the numbers through the crossover calculator, or talk to a member of the team about your specific situation. Both routes give a clearer answer than trying to time it off instinct.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the right long-term answer, not a stepping stone you are obligated to leave. If your Utah team is still small, still changing shape, or you are genuinely testing the market before committing, staying on the EOR is a fair choice, not a compromise. Talk to a member of the team first if you are unsure, and use the crossover calculator if you want the numbers behind the decision.
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 Teamed registers the entity with the Division of Corporations and Commercial Code, handles the $59 formation and registration fee, and builds the payroll setup around the state's flat 5.0% corporate income tax and $100 minimum franchise tax. You get a working, compliant Utah entity, not a shell you still have to finish setting up yourself.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Common questions about moving from an EOR to your own entity in Utah
How much does it cost to set up a company in Utah instead of using an EOR?
Formation and registration through the Utah Division of Corporations and Commercial Code costs $59. On top of that, the entity owes Utah's minimum franchise tax of $100 each year, plus corporate income tax at 5.0% once it is profitable.
Will my employees notice the switch from an EOR to our own Utah entity?
Not in their day-to-day work. Their manager, role, and pay schedule stay the same, and Teamed times the transfer so there is no gap in employment or pay while the entity behind their contract changes.
Do we still owe Utah's minimum franchise tax if the entity isn't profitable yet?
Yes. Utah's minimum franchise tax of $100 applies regardless of profit, according to the Utah State Tax Commission's TC-20 instructions, so it is a fixed annual cost of keeping the entity open.
How do we know if it's the right time to move off the EOR in Utah?
It depends on your salaries, team size, and how long you plan to keep a presence in Utah, not a fixed headcount. The crossover calculator uses your own numbers, or you can talk to a member of the team directly.
Does Teamed handle the whole Utah entity setup, or just part of it?
Teamed sets up the entity with the state, migrates existing employees across, and hands back a fully operational Utah company. That includes the registration filing and the payroll structure built around Utah's tax rates.
Where these figures come from
Sources
Figures on this page come from the Utah State Tax Commission's TC-20 corporation franchise and income tax instructions and the Utah Division of Corporations and Commercial Code.
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.