How to move from an EORto your own entity in Washington.
Moving from an EOR to your own Washington entity means forming a company, migrating payroll and benefits, and Teamed can run this transition for you.
At a glance
Washington in brief
Washington charges no state corporate income tax, taxes businesses instead through the business and occupation tax on gross receipts, and charges a $180 fee to register a new entity with the Secretary of State.
- Corporate income tax
- 0%
- Franchise tax basis
- gross receipts
- Formation / registration fee
- $180
The bigger picture
Why companies outgrow their EOR in Washington
Washington's absence of a state corporate income tax makes it an attractive place to build a direct legal presence once your team is established. Many companies start with an employer of record to test hiring in the state, then set up their own entity when payroll volume, benefits complexity, or long-term hiring plans make direct employment more efficient.
The right moment to switch depends on your workforce size, salaries, and how long you plan to stay, not a fixed headcount. Use the crossover calculator to see where your numbers actually land rather than guessing at a threshold.
Tax and cost basics
What running your own entity in Washington actually costs
Washington charges no state corporate income tax, which simplifies planning once you set up your own entity. Instead, the state applies its business and occupation tax on gross receipts, so your tax exposure tracks revenue rather than profit, a distinction worth modeling before you commit.
Registering a new entity with the Washington Secretary of State carries a formation fee of $180, a modest cost against the payroll and compliance overhead you take on once you move employment in-house.
The transition
How the move from EOR to your own entity works
Moving off an EOR in Washington follows a predictable sequence. You form the legal entity, register it with the Secretary of State and the Department of Revenue, then set up state-specific payroll and workers' compensation coverage before any employee moves onto your own payroll.
Benefits, especially health plans and retirement accounts, need to be re-underwritten in the new entity's name so coverage doesn't lapse mid-transition. Employees typically see no disruption in pay if the handover is timed correctly, which is the part Teamed manages directly through GEMO.
The honest answer
Is your own entity always the right move
An employer of record is often the smarter choice while your Washington team is small or still finding its shape, or while you're testing the market before committing capital. It's not a lesser path, it's the right one for that stage, and moving to your own entity only pays off once volume and permanence justify it. Talk to a member of the team about your situation, or run the numbers yourself with the crossover calculator.
GEMO
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 builds a fully compliant entity in Washington while your team keeps working without a gap in pay or benefits.
Teamed handles formation, payroll re-registration, and benefits transfer, then hands the entity to you fully operational. Teamed runs this same GEMO model across 100+ countries, so the Washington move follows a proven playbook rather than an improvised one.
Before you commit
Sometimes an employer of record is the better fit
An employer of record is often the smarter choice while your Washington team is small or still finding its shape, or while you're testing the market before committing capital. It's not a lesser path, it's the right one for that stage, and moving to your own entity only pays off once volume and permanence justify it. Talk to a member of the team about your situation, 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.
Teamed handles formation, payroll re-registration, and benefits transfer, then hands the entity to you fully operational. Teamed runs this same GEMO model across 100+ countries, so the Washington move follows a proven playbook rather than an improvised one.
They set up our EU entity and moved hires across without missing a payroll.
Questions
Frequently asked questions about moving from an EOR in Washington
Do I need to worry about Washington corporate income tax when I set up my own entity?
No, Washington does not levy a state corporate income tax. Instead, your entity will owe the business and occupation tax, which is based on gross receipts rather than profit, so plan around revenue, not net income.
What does it cost to register a company in Washington?
Registering a new entity with the Washington Secretary of State carries a formation fee of $180. That figure covers registration only, not the payroll, benefits, and compliance setup that follow.
How is Washington's business tax different from other states?
Washington taxes gross receipts through its business and occupation tax rather than taxing corporate net income. This means your tax bill is tied to revenue coming in, so it's worth modeling separately from how you'd plan under a net-income tax state.
How long does the move from EOR to owned entity take in Washington?
There's no fixed timeline, it depends on how quickly your entity forms, how complex your benefits transfer is, and how ready your internal payroll and HR functions are. Teamed's GEMO process is built to keep pay and coverage continuous throughout, whatever the pace.
Can Teamed still help once my Washington entity is set up?
Yes, GEMO hands the entity back to you fully operational, and you can keep working with Teamed for ongoing support if you want it. The entity is yours either way, there's no lock-in built into the handover.
Where these figures come from
Sources
These figures come from the Washington State Department of Revenue and the Washington 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.