How do you movefrom EOR to your own entity in Vermont.
Teamed forms your Vermont entity, registers it with the state, and transfers employees from the EOR agreement to direct employment without a pay gap.
At a glance
Moving from EOR to your own entity in Vermont
Vermont charges a $155 fee to register your entity with the Secretary of State, and once you employ directly, your company owes Vermont's 6.0% corporate income tax on top of federal obligations. Teamed handles the formation, the registration, and the employee handover, so the move happens on a schedule you set, not one forced by a growing headcount.
- Corporate income tax
- 6.0%
- Formation / registration fee
- $155
The signal to watch
When Vermont growth outpaces your EOR agreement
Your Vermont team probably started small, one or two hires under an employer of record, fast to launch and simple to manage. As headcount grows, or once you commit to Vermont for the long haul, the shape of that arrangement often stops fitting the way it used to.
Teamed builds the exit into the relationship from the start, so moving to your own entity feels like a planned handover rather than a scramble.
The mechanism
How Teamed moves you from EOR to your own Vermont entity
The process runs in a fixed order. Teamed forms your entity, files the registration with the Vermont Secretary of State for a $155 fee, sets up your state and federal tax accounts, and arranges payroll and benefits infrastructure under your new company name.
Once that foundation is in place, we transfer each employee's contract from Teamed to your entity on an agreed date, matching pay, benefits, and start dates so nobody notices a gap. You keep the same team, the same terms, just under your own name.
Tax and compliance
What your Vermont entity owes once it's your own
Once you employ directly in Vermont, your company becomes liable for the state's corporate income tax at 6.0%, layered on top of federal tax obligations. That liability, and the filings that come with it, previously sat with Teamed as your employer of record.
You also take on Vermont's payroll tax registrations, workers' compensation coverage, and ongoing state filings directly. None of this is unusual for a growing company, but it does mean building out finance and HR capacity that the EOR arrangement had been absorbing for you.
Timing
Deciding when to make the move
The right time to switch depends on more than how many people you employ. It depends on salary levels, how confident you are in Vermont as a long-term market, and how much internal HR and payroll capacity you're willing to build.
Rather than guess at a headcount trigger, run your numbers through the crossover calculator, or talk to a member of the team about where your Vermont operation sits today.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the smarter choice, not a lesser one. If your Vermont team is still small, its shape is still changing, or you're testing the market before committing real capital, staying with an EOR keeps things simple and reversible. Talk to a member of the team about your specific situation, or work through the numbers with the crossover calculator before you decide anything.
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.
Global Entity and Employment Operations, which we call GEMO, is how Teamed runs this handover in Vermont and across 100+ countries. We register your entity with the Vermont Secretary of State, migrate your employees' contracts and benefits without a gap in pay, and stay involved until your own payroll and compliance functions are running on their own.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Vermont EOR to entity, common questions
What does it cost to register a company in Vermont?
The Vermont Secretary of State charges a $155 filing fee to register your entity. Other setup costs, such as registered agent services or accounting support, sit outside that filing fee and vary by provider.
What corporate tax rate applies once we set up our own Vermont entity?
Vermont's corporate income tax rate is 6.0%, according to the Vermont Legislature's House Ways and Means overview. This applies once you employ directly, on top of any federal corporate tax obligations.
How long does the move from EOR to our own Vermont entity take?
Timing depends on entity formation speed, tax registration, and how many employees need contract transfers. Teamed sequences these steps so payroll and benefits continue without interruption throughout the process.
Do we need a registered agent for a Vermont entity?
Vermont requires registered entities to maintain a registered agent with a physical presence in the state. Teamed can help you arrange this as part of the entity setup.
How do we know if it's time to leave the EOR model in Vermont?
There's no single headcount trigger, it depends on your salary levels, how long you plan to stay in Vermont, and how much HR capacity you want to build internally. The crossover calculator or a conversation with the team can help you work through your specific numbers.
Where these figures come from
Sources
These figures come from the Vermont Legislature, House Ways and Means corporate income tax overview, and the Vermont 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.