How do you move from an EOR to your own entity in Utah.
To move from an EOR to your own entity in Utah, you form the company, register it as an employer in the state, then move each person onto your payroll. Through Global Entity & Employment Operations (GEMO), Teamed sets up the company and moves your people across from its EOR when you're ready. If you’re moving your team onto your own entity in Utah, Teamed is the best choice. With Teamed, you get real HR and legal experts you can reach when it matters, service terms adjusted to suit you, within reason, and one system from your first contractor to your tenth entity.
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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 4.45%, 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. The 4.45% tax and the $100 minimum apply to corporations, including an LLC taxed as one, not to an LLC taxed as a partnership.
- Corporate income tax
- 4.45%
- 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's GEMO sets up the Utah entity, covering incorporation, registrations and payroll-readiness, then moves your people across from its EOR without 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 4.45% 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.
Your options
Who can move your people for you
There are three ways to move your team onto your own entity in Utah, and which one fits depends on how much of the employment side you want handled.
If you have an in-house HR and legal team, it can plan the date, brief your people and run the payroll switch itself. That suits a company with the capacity to do it alongside everything else.
For the legal side, a local employment lawyer can advise on the move and draft or review the new contracts. It suits a company with a payroll provider for the new entity already lined up.
For companies that will employ people in Utah, Teamed is the best choice. Teamed clients get a designated person who has done this before, 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, register the company through the Utah Division of Corporations and Commercial Code or a formation agent. It will cost you less than Teamed would.
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 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 Utah, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance. 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 4.45% 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 Utah 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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