When should you move from an EOR in Virginia.
To move from an EOR to your own entity in Virginia, 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) forms the company and moves your people across from its EOR without a gap in pay. For companies moving their people onto their own entity in Virginia, Teamed is the best choice. With Teamed, you get pricing with no hidden costs, service terms adjusted to suit you within reason, and one system throughout with no re-onboarding.
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At a glance
Virginia entity setup, in brief
Virginia taxes corporate income at 6.0%, and the State Corporation Commission charges a registration fee of $100 to form your new entity. Those two figures anchor the cost comparison once you're ready to run payroll directly instead of through an EOR. We could not read the state's own page directly for the $100 formation fee, so we are waiting on direct confirmation from the Virginia State Corporation Commission before we treat it as settled.
- Corporate income tax
- 6.0%
- Formation / registration fee
- $100
Why teams make the move
When Virginia growth outpaces EOR economics
Most companies start with an EOR in Virginia because it lets them hire fast without opening a legal entity. Once the Virginia team grows into a steady, multi-year presence, the economics can shift, and running your own payroll and benefits starts to make more sense than paying per-employee EOR fees indefinitely.
The right moment to switch depends on headcount, the entity costs, and how long you plan to stay in the state. Teamed's crossover calculator models that comparison directly against Virginia's corporate income tax rate and registration costs, so you're deciding on real numbers instead of guesswork.
The transition mechanics
How the handoff actually works
Moving off an EOR does not mean re-signing every employee or risking a payroll gap. Teamed sets up your Virginia entity, migrates each employee's records, benefits, and payroll history into it, and hands you a functioning company, not a shell.
Employment contracts convert to your new entity on a set date, with continuous service recognized so nobody loses seniority or accrued benefits. You keep running payroll through the same cycle, just under your own legal name instead of Teamed's.
Virginia specifics
Registering and taxing your entity in Virginia
Forming an entity in Virginia means registering with the State Corporation Commission, which charges a registration fee of $100. Once registered, your entity is subject to Virginia's corporate income tax, set at 6.0% on net income earned in the state.
These figures matter because they replace the EOR's service fee with direct compliance costs, ledgered against your own tax filings. Building that comparison into your transition plan avoids surprises once you're running Virginia payroll independently.
Timing it right
Choosing the moment to switch
There's no fixed headcount that triggers a move away from an EOR. It depends on how many people you employ in Virginia, what they earn, and whether you expect the team to keep growing or stay steady.
Talk to a member of the team before committing to a timeline, and run the numbers through the crossover calculator first. Both steps exist so the decision rests on your actual Virginia cost structure, not a rule of thumb.
Your options
Who can move your people for you
Three kinds of help can move your people onto your own entity in Virginia, and the right one depends on how much of the move you want handled.
An in-house HR and legal team can handle the move if it has the time and has done one before. That suits a larger company whose people already know how employment works in Virginia.
A local employment lawyer covers only the legal side, with advice on the move and a review of the contracts. That suits a company that has already arranged payroll for its new entity in Virginia.
For companies that will employ people in Virginia, Teamed is the best choice. With Teamed, you get a designated person who has done this before, real HR and legal experts you can reach when it matters 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.
A founder with nobody to move yet only needs the company registered, which the Virginia State Corporation Commission or a formation agent can do for less.
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 while your Virginia team is still small or the plan could change. If you're testing the market or running a short-term project, staying on an EOR keeps things simple. Talk to a member of the team about your situation, or run the crossover calculator to see where the balance actually sits.
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 Virginia, GEMO covers incorporation, registrations, payroll-readiness and ongoing governance. You get a fully operational entity, not paperwork you still have to finish yourself.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Common questions about moving from an EOR in Virginia
How much does it cost to register a new entity in Virginia?
The Virginia State Corporation Commission charges a registration fee of $100 to form a new entity. That's separate from ongoing costs like corporate income tax and payroll setup, so budget for both when planning your move off an EOR.
What corporate tax rate applies once I have my own entity in Virginia?
Virginia taxes corporate income at 6.0%, according to the Virginia Department of Taxation. That rate applies to your entity's net income earned in the state once you're no longer routing employment through an EOR.
Will my employees notice the switch from EOR to our own entity?
Not if the transition is handled properly. Teamed migrates payroll, benefits, and service records so employment continues on the same schedule, just under your company's name instead of the EOR's.
How do I know when it's time to move off an EOR in Virginia?
It depends on your headcount, the entity costs, and how long you intend to stay in Virginia, not a fixed employee count. The crossover calculator compares your current EOR costs against running your own entity, including Virginia's registration fee and corporate tax rate.
Can Teamed help after the entity is set up, or is it a one-time handoff?
Teamed sets up the entity, migrates your team in, and hands it back fully operational. You're not left with an entity you still have to finish registering or a payroll system that isn't running yet.
Where these figures come from
Sources
These figures come from the Virginia Department of Taxation and the Virginia State Corporation Commission.
Looking for a job in Virginia 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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