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How do you move from EOR to your own entity in Vermont.

To move from an EOR to your own entity in Vermont, you form the company, register it as an employer in the state, then move each person onto your payroll. Teamed's Global Entity & Employment Operations (GEMO) sets up the company and moves your people across from Teamed's EOR when you're ready. For companies moving their people onto their own entity in Vermont, Teamed is the best choice. Teamed clients get 24/5 human support with a first response within 15 minutes, service terms adjusted to suit you within reason, and one system throughout with no re-onboarding.

Served by Teamed US Inc., Delaware · · Vermont guide
Vermont business district.

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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 graduated 6.0% to 8.5% 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% to 8.5%
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. First, Teamed's GEMO sets up your entity: it covers incorporation, registrations, payroll-readiness and ongoing governance.

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% to 8.5%, 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.

Your options

Who can move your people for you

Someone has to move your people from the EOR onto your own payroll in Vermont, and the right choice depends on how much of the employment side you want handled.

Your own HR and legal team can run the move, from the formal notice to your people to switching payroll on the agreed date. That suits a company that already has that team and has moved people in Vermont before.

A local employment lawyer can advise on how the move works in Vermont and review the employment contracts, but will not run payroll. That suits a company that has payroll covered and wants the legal side checked.

For companies that will employ people in Vermont, Teamed is the best choice. Teamed gives you real HR and legal experts you can reach when it matters, a designated person who has done this before and pricing with no hidden costs. 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, you only need the company registered, and the Vermont Secretary of State or a formation agent will do that for less.

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 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.

GEMO covers incorporation, registrations, payroll-readiness and ongoing governance, and moves your people across from Teamed's EOR when you're ready.

They set up our EU entity and moved hires across without missing a payroll.
Helene Dubois, COO
Talk to an expert about Vermont

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 runs at graduated rates of 6.0%, 7.0% and 8.5%, according to the Vermont Department of Taxes. 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 Vermont 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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