3 Options You Can Take When Moving Your LLC

Moving your LLC is not strange, and a couple of companies have done this for several varied reasons. When you think about it, it just merely means packing your bags and stuff and bringing them with you to whichever state you are planning to move. However, there are several other things you need to do before physically moving things.

Option 1: Keep Existing Company And Open A New One

You can decide to keep your existing company and register it in the new state that you are Moving Your LLC to. Some companies do this, especially when the hassle of transferring your company is just not worth the effort. This option is the quickest and most comfortable one, and it is done by filing an application for foreign authority, whereby your new state recognizes your entity and that it will operate in such.

The catch to this kind of approach to Moving Your LLC is the fees you would have to pay. You will need a registered agent in your new state, and you will also have to maintain one in your original state as well. You would have to pay a certified agent service to act as your agent in each state. Some states have periodic payable fees, as well as state tax filings. Although you may not be physically operating in that state, you still have to comply with the requirements because failure to abide by the original state’s laws could lead to the termination of your entity.

Option 2: Existing Close Company And Open A New One

You can also decide to close your existing entity and form a new one in the state you are Moving Your LLC to. This is logical, albeit complicated to do because you would need to transfer all your assets to your new business entity in the new state. When you have finalized this, you would have to do the formal and legal dissolution of the existing entity. As with the start of the new business, you would need new bank accounts and unique employer identification number. You would have to transfer any contracts from the existing entity you are about to close to that of your new entity. Any assets that are titled, like automobiles, would need to be re-titled with the proper authorities. For this option, especially, tax-related concerns need to be considered since there could be some negative impact if done incorrectly.

Option 3: Transfer Your Company From One State To Another

Finally, when Moving Your LLC, you also have the opportunity to transfer your business entity to the new state. Please keep in mind that not all states allow this kind of option, also called domesticating your entity. To do this, you would need to file articles of domestication with the new state and then dissolve the original entity. However, only a limited number of states allow for domestication, and some, if not all, of these states, also requires that the state the entity is originating from also allows domestication. But, if domestication is possible and you domesticate your entity, you get to keep your employer identification number, bank accounts, contracts, etc.

There are many options and aspects you need to look into when looking at Moving Your LLC, so speaking with an attorney early in the process will help you determine the best option to take. Choosing the best option will make things easier for you, and will likely save a lot of time and effort in the long run.

If you have any questions about how to handle your business as you are planning to move your LLC, our lawyers here at Jurado & Farshchian, P.L., can get you sorted on what you need to know and which direction is available and ideal for your circumstances. Call us now at (305) 921-0440 or send us an email to [email protected].