If you’re considering re-domesticating your LLC, then it’s best to consult with a business lawyer and an office of the Secretary of State in both your original state and new state. Your original state will probably not recognize the move as legal; this means there’s a chance the state will dissolve the company. Upon re-domesticating into a new state, you will immediately be bound by all the laws of your new jurisdiction.

• Applications for registration can be filed online through SOSDirect 24 hours a day, 7 days a week.
• The corporation or LLC files required documents with the old and new states to make the transaction effective.
• She specializes in vibrant, natural, and cheerful weddings, events, and portraits.
• Your accountant does not believe that there will be negative tax consequences to dissolving your existing corporation or LLC.

Determining whether to register is a business decision that may have tax consequences, raise legal issues, or impact licensing from another agency or state board. Any other foreign entity that affords limited liability under the law of its jurisdiction of formation for any owner or member. Often, expanding into another state means filing as a “foreign entity” with the local secretary of state. Although you won’t have to move your entire company to this new location, the rules vary from state to state, so it’s important to do your research ahead of time. So you started your LLC in one state, and it becomes successful, but you then decide to move to a new state for family or other reasons.

Foreign or Out-of-State Entities

You’ll be able to keep the same employer identification number, bank accounts, and permanent business address while still doing business in a new location. When you move an LLC to another state, your business is considered a “foreign LLC” in that state. It’s perfectly acceptable to have a business that is formed in one state and registered to do business as a foreign LLC in one or more other states. In fact, corporations commonly select Delaware as their corporate home even if they only do business in other states.

I advise consulting with your attorney and accountant at every stage of this process in order to ensure that you are selecting the best strategy for your business and that you are executing it properly. When you register a new LLC, each member transfers their membership interest and percent share from the former LLC to the new LLC. Domestication/Conversion is a good option if you want to completely move your LLC to a new state. However, both the state you’re leaving and the state you’re going to must allow this process. To dissolve an LLC, first look at the operating agreement. The first step in a merger is to form a new LLC in the state where you want to do business.

Expanding a corporation vs. an LLC

However, you must file for a Certificate of Authority with the state of residence for your new business. Which approach is the right one for you depends on whether your move is permanent and whether you might operate your business in both the existing and the new state. The cost of real estate has risen so much that your business is at risk of going under. Tools, resources and guides to officially form your company.

The traditional rule has been that before a state can claim nexus, you must have a Moving Your Llc Or Corporation To Another State in the state. However, because of recent Supreme Court rulings and a wave of new state legislation, many states now no longer require a physical presence to impose nexus for sales or income tax purposes. The operating agreement will usually provide detailed instructions to the LLC members on the process to be followed when the LLC is dissolved. If state law overrides the operating agreement, then follow state law.

How to Move an LLC to Another State…

When your company is an LLC, it is better to hire an attorney when moving your business to another state. It is better to review your choices with an expert attorney’s guidance as things can get tricky. Paul Donovan is an attorney, CPA, real estate developer, and broker with 25 years of experience advising real estate clients on the legal, tax, and financial aspects of real estate. Paul spent much of his career working for the “Big 4” advising Fortune 500 companies on complicated tax issues involved in the acquisition and disposition of real estate assets around the world. LLC merger is an alternative strategy for completely moving your LLC to a new state when either you’re leaving or the state you’re going to doesn’t allow for domestication/conversion.

• In this article, we explore the options you have to change the state of formation for your LLC or corporation.
• If your single-member LLC in your previous state is still a single-member LLC in Iowa, no change in EIN is required.
• When you move an LLC to another state, you may need to register with state and local taxing authorities.
• Look for tax incentives that may be available in the new place of business.
• I recently moved from Jersey City to Westchester County and had to figure out how to move my LLC from NJ to NY.

WikiHow’s Content Management Team carefully monitors the work from our editorial staff to ensure that each article is backed by trusted research and meets our high quality standards. If you need to expedite your application, you can usually pay to have it processed in 24 to 48 hours. With over 9 years of consulting experience, Jon is an expert in developing and running successful enterprises. With a business management degree, he has worked with different LLCs and Registered Agent services and helped clients achieve their goals. You may also want to do more research on the impact this move could have on your company’s taxes. Make sure that all fees will be worth the time and money saved.

Keep an Old LLC and Register in a New State

And keep in mind local zoning laws as they apply to your new location. Be aware that conducting business without the proper licensing can lead to hefty penalties and legal problems. Also, if you have state or local business licenses and permits in your current home state, you must cancel them and apply for the required licenses and permits in the new state and local jurisdiction. Don’t confuse redomestication withforeign qualification.

Form 612 can be used as a cover letter to the certificate required for termination. The filing fee is $15 ($5 for nonprofit corporations and cooperative associations). Foreign nonprofit corporations and certain foreign limited partnerships that are not subject to franchise taxes are required to file a periodic report with this office not more than once every four years. The secretary of state will send a report notice to the registered agent/office address on file when it is time for the entity to file its periodic report.

It maintains the same name, bank accounts, and employer identification number. The LLC also doesn’t have to amend any of its contracts as it’s legally the same entity that entered into those contracts. The LLC is the same taxpayer as before the domestication.

A series LLC formed under the laws of another jurisdiction will be treated as a single legal entity for qualification purposes. The LLC itself rather than the individual series should register as the legal entity that is transacting business in Texas. The secretary of state has a separate application for registration form for foreign series LLC. In some situations, it’s beneficial to register as a foreign (out-of-state) entity and keep your LLC registered in your old state.