Nowadays, businesses are more mobile than ever before. When you move your headquarters, you might be wondering how to go about transferring your LLC to your new home state. There are a few things you should know about making the move.
You will need to file with the Secretary of State
The first step in the process is to change your LLC’s domicile to your new state. This can be accomplished in various ways depending on the laws of your home state. It may require a merger or might be accomplished with a simple re-domestication filing. Or, you may find tax advantaged reasons to start fresh with a new entity. The new entity might acquire all the assets of your existing business for continuity. Not all states will allow you to simply transfer your LLC’s domicile. You will need to make sure that both your current state and your target state accept the structure you propose for your re-domestication.
You should consider the terms of your Certificate of Formation
Each state has different requirements for the contents of the governing document of an LLC that is filed with the state. Some require identification of the owners or managers of the LLC, some require a principal address, and all require naming a registered agent and providing a registered address. This address serves an important function, since it allows people to locate your business for things such as service of process.
Many times, a business does not want to change EINs because of the difficulty of setting up new vendor accounts, changing bank accounts, and moving employees. The good news is that, there are several approaches to re-domestication that would allow your LLC to keep its same Employer Identification Number. Since the IRS is a federal agency, that number does not automatically need to change when a company simply moves from state to state.
In many ways, moving a business from one state to another can be a complex process. Assessing the most efficient path to redomestication before you invest money into the move can help to avoid any delays and lessen the accompanying headaches.