Entity or EORin Virginia.
In Virginia, Teamed lets you hire through an EOR immediately, or set up your own entity when it makes sense, without registering with the state first.
At a glance
Virginia at a glance
Setting up your own entity in Virginia means a $100 State Corporation Commission fee and a 6.0% corporate income tax rate. An EOR lets you skip both and hire immediately.
- Corporate income tax
- 6.0%
- Formation / registration fee
- $100
Entity path
What it takes to register in Virginia
If you set up your own entity in Virginia, you register with the Virginia State Corporation Commission and pay a registration fee of $100. That gets you a legal presence, but it does not by itself let you run payroll or handle benefits, you still need to build out those systems.
Once registered, your entity pays Virginia's corporate income tax, set at 6.0% of taxable income. You also take on the ongoing compliance work, annual filings, registered agent requirements, and the tax return itself, all before you hire your first person.
EOR path
Hiring through an EOR instead
An employer of record already holds the Virginia registration and manages the corporate tax obligations tied to its own entity. Teamed employs your worker on your behalf, so you skip the State Corporation Commission filing and the $100 fee entirely.
You still direct the day to day work, set the salary, and manage performance. Teamed handles the contract, the payroll runs, and the statutory withholding, so you're hiring in Virginia within days rather than waiting on state paperwork.
Cost and timing
Weighing cost against timing
The entity route front loads cost, the $100 State Corporation Commission fee, the corporate tax exposure at 6.0%, and the internal time spent on filings and compliance setup. That cost structure makes sense when you plan a large, permanent Virginia presence.
The EOR route spreads cost differently, you pay Teamed a service fee instead of building compliance infrastructure yourself. For a first hire or a small team, that usually moves faster than incorporation and avoids the upfront filing work.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is sometimes the better answer, not a lesser one, especially for a small or still changing Virginia team, or when you're testing the market before committing capital. Talk to a member of the team about your specific plan, or run the numbers yourself with 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 Virginia, that means Teamed handles the State Corporation Commission registration, the $100 filing, and the corporate tax setup at 6.0%, then transfers the finished entity to you with your team already employed inside it. The same process runs the same way across the 100+ countries where we operate, so your Virginia entity is just one piece of a system that already works elsewhere.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Frequently asked questions
Do I need to register with the Virginia State Corporation Commission before hiring employees there?
Only if you're hiring through your own entity, not through an EOR. Registering with the Virginia State Corporation Commission requires a $100 fee and gives you legal standing to operate, but an EOR like Teamed already holds that standing so you can hire without it.
What is Virginia's corporate income tax rate?
Virginia taxes corporate income at 6.0%. If you set up your own entity, that rate applies to your Virginia taxable income once you're operating, and if you hire through an EOR, that tax sits with the EOR's entity instead.
Is it faster to hire through an EOR or set up an entity in Virginia?
Hiring through an EOR is faster because the registration and tax setup are already done. Setting up your own entity means completing the Virginia State Corporation Commission filing and building payroll and compliance from scratch before you can legally hire.
Can I move from an EOR to my own entity in Virginia later?
Yes, and that's what Global Entity and Employment Operations, which we call GEMO, is built for. Teamed sets up the Virginia entity, migrates your employees into it, and hands it back fully operational, and whether that makes sense depends on your salaries and how long you plan to stay, which the crossover calculator can help you work out.
Is using an EOR legal for hiring in Virginia?
Yes, employer of record arrangements are a standard, legal way to employ workers in Virginia without maintaining your own registered entity. The EOR holds the legal employment relationship and compliance obligations, while you direct the actual work.
Where these figures come from
Sources
These figures are drawn from the Virginia Department of Taxation and the Virginia State Corporation Commission.
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.