How to move your llc to another state

If you live in a state with high tax implications and are planning to start an LLC, registering it in a different state may save you money and resources. But the procedure of registering a company out of state is not easy. There are several requirements and compliance issues that you need to consider.

Can I Register My LLC in a Different State?

Yes. You can register your LLC in a different state if you comply with the laws and regulations of both states.

What Are the Requirements of a Foreign LLC?

If you decide to register your LLC out of state, you should note that you will be considered a foreign LLC. As a foreign LLC, you must file for a certificate of authority and pay the required registration fees. Depending on the state, you may also need to pay state taxes like corporate and franchise taxes.

Registering Your Business in State vs. out of State

The following table compares the implications of registering your business in state versus out of state.

Incorporating in state

Incorporating out of state

  • Relatively straightforward process
  • Relatively complicated process
  • The company is incorporated and is conducting its business in one state. You only need to comply with the laws of that state.
  • You need to comply with the laws of both the state of incorporation and the state where the company conducts its primary business.
  • The registration process may be more expensive.
  • The registration may cost less depending on where you incorporate the company
  • Pay taxes only in one state
    , depending on the laws of the states.

States Considered Business-Friendly for Foreign LLCs

Most people consider the following states beneficial for out of state businesses to register:

  • Delaware: Over 1 million corporations are incorporated in Delaware. Companies choose Delaware as a haven for incorporation because Delaware has an advanced and flexible General Corporation Law. Delaware also has low initial filing and franchise fees, assistance for new business owners, and highly accommodating business entity laws.
  • Wyoming: Registering your business in Wyoming has a number of advantages including no state taxes, low start-up costs, and no U.S. citizenship requirements.
  • Nevada:Registering your business in Nevada has numerous advantages, including no franchise or corporate taxes, low registration fees, and strong privacy protection for business owners.

Additional Resources

Consult an Attorney If You Are Planning to Register Your LLC out of State

If you plan on registering your LLC outside of the state where the LLC conducts its business, you need to comply with the laws of both states. Therefore, it is important to consult a business law attorney in both states to ensure your LLC runs smoothly.

If you're relocating your business to another state, you'll likely want to register there. Here's how to do it.

by Jane Haskins, Esq.
updated March 03, 2021 · 4 min read

How to move your llc to another state

When you have an LLC organized in one state and has moved to another one, you must register to do business in the new state. To avoid the hassle of dealing with two states, you may also want to transfer the business from the old state to the new one.

The procedure you’ll follow depends on your business goals and the states you are moving out of and into. Here are the options and the reasons you might choose each.

1. Register to Do Business in Your New State

When you move an LLC to another state, your business is considered a “foreign LLC” in that state. It’s perfectly acceptable to have an 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.

You can register a foreign business by submitting a form to the state agency responsible for business filings.

Simply registering your business in your new state can work well if your move is temporary, if you anticipate changing states more than once, or if you think you will continue to do business in your old state. 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.

But if your business is organized in one state and registered to do business in another, you will need to maintain a registered agent in each state and keep up with each state’s LLC filing and reporting requirements. You may also have to pay additional taxes. For example, California imposes a franchise tax on every corporation or LLC that is registered to do business there.

2. Domesticate Your LLC

Your next option is to formally transfer an LLC from one state to another. This process is known as domestication. If your state allows it, a domesticated LLC may be the easiest and best way to handle a business move. You create a domesticated LLC by obtaining a certificate of good standing from the old state and filing it, along with articles of domestication, with the secretary of state or other agency in charge of business filings in your new state. You’ll then need to dissolve the business in the old state.

Not all states allow domestication, so you’ll need to make sure it is permitted by both the state you are moving out of and the state you are moving into.

Domesticating an LLC allows you to maintain your previous business relationships, including your bank accounts, tax ID number and credit rating. You’ll only be located in one state, so you won’t have to worry about meeting two states’ LLC requirements. And the process is simpler than dissolving the old LLC and forming a new one.

3. Form a New LLC and Dissolve the Old One

An alternative procedure involves forming an LLC in the new state and dissolving the LLC in the old state. There are a few different ways to accomplish this. The two businesses may merge, the old LLC may be liquidated, or the members of the old LLC may contribute their membership interests to the new company. Because this process is more complicated than either of the other two options, it’s a good idea to seek assistance from an attorney.

Forming a new LLC can be inconvenient because you will have to get a new tax ID number and establish new business accounts. You may also lose the benefit of good credit that your business has built over the years.

However, forming a new LLC might be your best choice if your state does not allow domestication and you do not want to contend with operating a business that was formed in one state and registered to do business in another.

4. Other Things to Consider

An LLC can choose to be taxed as a corporation, partnership or sole proprietorship. The tax classification that was best for your LLC in your old state might not be as advantageous in your new state because different states have different personal and corporate income tax rates. An accountant can advise you on the tax consequences of your move. You can change your tax status by filing Form 8832 with the Internal Revenue Service.

When you move an LLC to another state, you may need to register with state and local taxing authorities. You may also need new business licenses, and you should update your address with everyone you do business with.

Moving an LLC to a different state is often a simple process. Before you make the move, however, you should consider your options and get an accountant’s advice on the tax consequences of changing states.

LegalZoom can help you start an LLC quickly and easily. Get started by answering a few simple questions. We'll assemble your documents and file them directly with the Secretary of State. You'll receive your completed LLC package by mail.

If you're relocating your business to another state, you'll likely want to register there. Here's how to do it.

by Jane Haskins, Esq.
updated March 03, 2021 · 4 min read

How to move your llc to another state

When you have an LLC organized in one state and has moved to another one, you must register to do business in the new state. To avoid the hassle of dealing with two states, you may also want to transfer the business from the old state to the new one.

The procedure you’ll follow depends on your business goals and the states you are moving out of and into. Here are the options and the reasons you might choose each.

1. Register to Do Business in Your New State

When you move an LLC to another state, your business is considered a “foreign LLC” in that state. It’s perfectly acceptable to have an 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.

You can register a foreign business by submitting a form to the state agency responsible for business filings.

Simply registering your business in your new state can work well if your move is temporary, if you anticipate changing states more than once, or if you think you will continue to do business in your old state. 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.

But if your business is organized in one state and registered to do business in another, you will need to maintain a registered agent in each state and keep up with each state’s LLC filing and reporting requirements. You may also have to pay additional taxes. For example, California imposes a franchise tax on every corporation or LLC that is registered to do business there.

2. Domesticate Your LLC

Your next option is to formally transfer an LLC from one state to another. This process is known as domestication. If your state allows it, a domesticated LLC may be the easiest and best way to handle a business move. You create a domesticated LLC by obtaining a certificate of good standing from the old state and filing it, along with articles of domestication, with the secretary of state or other agency in charge of business filings in your new state. You’ll then need to dissolve the business in the old state.

Not all states allow domestication, so you’ll need to make sure it is permitted by both the state you are moving out of and the state you are moving into.

Domesticating an LLC allows you to maintain your previous business relationships, including your bank accounts, tax ID number and credit rating. You’ll only be located in one state, so you won’t have to worry about meeting two states’ LLC requirements. And the process is simpler than dissolving the old LLC and forming a new one.

3. Form a New LLC and Dissolve the Old One

An alternative procedure involves forming an LLC in the new state and dissolving the LLC in the old state. There are a few different ways to accomplish this. The two businesses may merge, the old LLC may be liquidated, or the members of the old LLC may contribute their membership interests to the new company. Because this process is more complicated than either of the other two options, it’s a good idea to seek assistance from an attorney.

Forming a new LLC can be inconvenient because you will have to get a new tax ID number and establish new business accounts. You may also lose the benefit of good credit that your business has built over the years.

However, forming a new LLC might be your best choice if your state does not allow domestication and you do not want to contend with operating a business that was formed in one state and registered to do business in another.

4. Other Things to Consider

An LLC can choose to be taxed as a corporation, partnership or sole proprietorship. The tax classification that was best for your LLC in your old state might not be as advantageous in your new state because different states have different personal and corporate income tax rates. An accountant can advise you on the tax consequences of your move. You can change your tax status by filing Form 8832 with the Internal Revenue Service.

When you move an LLC to another state, you may need to register with state and local taxing authorities. You may also need new business licenses, and you should update your address with everyone you do business with.

Moving an LLC to a different state is often a simple process. Before you make the move, however, you should consider your options and get an accountant’s advice on the tax consequences of changing states.

LegalZoom can help you start an LLC quickly and easily. Get started by answering a few simple questions. We'll assemble your documents and file them directly with the Secretary of State. You'll receive your completed LLC package by mail.

This post addresses how one may move an existing corporation to another state. It is based on a question that I answered on Quora (What state is best to incorporate an S-corp if you plan on moving away?).

I find that for most entrepreneurs, it makes sense to incorporate in the state where the entrepreneur resides. As I wrote in In which State should My Startup Incorporate?

Incorporate in the state in which you are doing business, unless there is a good reason to do otherwise [in which case the other state chosen probably will be Delaware].

Why Does One Move a Corporation to Another State?

However, if the entrepreneur relocates to another state, then a choice must be made.

  • If the corporation remains registered in its initial state, then it will have to pay to register as a “foreign corporation” in the new state. That means the corporation will pay fees and, possibly, taxes in two states thereafter.
  • Alternatively, the entrepreneur can move the corporation to the new state. Using that approach, the corporation will incur some costs for the move. However, from that point on the corporation will pay fees and taxes only to the new state.
How Does One Move a Corporation to Another State?

From the legal perspective, there can be three ways to move a corporation to another state.

  1. Form the new-state corporation. Transfer assets and liabilities of the existing corporation to the new-state corporation. Dissolve the existing corporation. (This sometimes is called reincorporation.)
  2. Form the new-state corporation. Merge the existing corporation into the new-state corporation.
  3. Convert the existing corporation to a new-state corporation. (This sometimes is called redomestication or redomiciliation.)

Alternatives 1 and 2 can have significant tax implications. This can be an especially complex issue for Alternative 2, because there are different types of mergers.

Alternative 3 is the easiest approach, because the existing entity remains in place. The potential problem, however, is that applicable laws may not permit Alternative 3. For example, California law does not permit a California corporation to convert to a foreign-state corporation. (Interestingly, California law does permit a California LLC to convert to a foreign-state entity.)

So if you want to move your corporation to another state, you should work closely with your tax advisor and a business lawyer to identify the approach that will work best and to carry out that approach successfully.

Related posts:

Dana H. Shultz, Attorney at Law +1 510-547-0545 dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.

How to move your llc to another state

Entrepreneurship comes with its own set of perks — one of which is being able to manage your business wherever you choose. Perhaps you are moving to lower your cost of living, be closer to family or you simply want to explore another area of the country. Regardless of the reason, it’s important to know your options when moving an LLC to another state.

The process varies by business and by state, so you need to first establish your goals and then look into the rules for the state you are moving to. If you’re not sure where to begin with changing your LLC address, this article is meant to help you distinguish which option best fits your needs.

Consider Your Options

You have decided to move your business and are excited to embark on this next chapter — now what? Before you move, consider consulting an attorney in your new state to handle some of the logistical details and ensure the transition is both seamless and meets the new state requirements.

Essentially, you have three options to move your LLC to another location:

  • Transfer an LLC from One State to Another for a Permanent Move
  • Keep an Old LLC and Register in a New State for a Temporary Move
  • Dissolve an Old LLC and Create a New One for a Fresh Start

Transfer an LLC from One State to Another

The process of transferring an LLC to another state is known as domestication. This may be the easiest and best way to handle an LLC move, especially if your move will be permanent. However, not all states allow it, so you will need to check if domestication is permitted in both states. Here is a list of states that allow domestication:

  • Arizona
  • California
  • Colorado
  • Delaware
  • District of Columbia
  • Florida
  • Idaho
  • Indiana
  • Kansas
  • Kentucky
  • Louisiana
  • Massachusetts
  • Maine
  • Mississippi
  • Nebraska
  • New Hampshire
  • New Jersey
  • Nevada
  • Pennsylvania
  • South Carolina
  • South Dakota
  • Texas
  • Utah
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming

You create a domesticated LLC by obtaining a certificate of good standing from the old state and filing it, along with articles of domestication, with the secretary of state or other agency in charge of business filings in your new state. You’ll then need to dissolve the LLC in the old state.

Domesticating provides several benefits including keeping the same bank accounts, tax ID number, credit rating and maintaining previous business relationships. Additionally, you’ll only be located in one state, so you won’t have to meet two states’ LLC requirements like you will need to in the second option below.

Keep an Old LLC and Register in a New State

If your move is temporary or you plan to move back to the original state of operation, consider continuing as an LLC or Corporation in the old state and registering as a foreign corporation doing business in a new state. When you move an LLC to another state, your business is considered a “foreign LLC” in that state.

This option will likely be the most expensive of the three. You will have to pay yearly fees, and you will also need a registered agent in both states to keep up with each state’s LLC filing and reporting requirements. However, if you anticipate changing states again soon, this might be your best bet. You can maintain the same employer identification number, bank accounts and permanent business address while still operating your business in a new location.

To register as a foreign business, check if you meet the criteria for foreign qualification and then submit a form to the state agency responsible for business filings.

Dissolve an Old LLC and Create a New One

If your goal is to form a new business or merge into a new corporation, you must go through the process of dissolving the old one. There are a few different ways to accomplish this: merge the two LLCs, liquidate the old LLC or have the members of the old LLC contribute their membership interests to the new LLC. Because this process is the most complicated of the three options, it’s a good idea to seek assistance from a local business attorney to make the process as painless as possible. Incfile can also ease the burden by doing the dissolution paperwork for you.

Forming a new LLC can be inconvenient because you will have to get a new tax ID number and establish new business accounts. You may also lose the benefit of good credit that your business has built over the years.

However, forming a new LLC might be your best choice if your state does not allow domestication and you do not want to contend with operating an LLC that is formed in one state and registered to do business in another.

Learn the Rules

As we previously noted, different states have different rules. When making the move to a new state, it is important to follow the guidelines for both the state you are moving out of and the state you are moving into. Find out the requirements for forming an LLC in your state. After this, you can properly assess the best option for your business, and be on your way to successfully operating your business in a new state.

A limited liability company (LLC) is a convenient way to structure your business, as it offers lots of flexibility and benefits. When you set up your LLC, you will do so in one state, but it’s possible to move your LLC to another state should you need to.

How to move your llc to another state

Reasons to Move Your LLC

When you set up your LLC, you do so with the intention of doing business primarily within one state. But things change. Your business might grow, you personally might decide to move, or you may find that the climate is just better in another state for your type of business. Fortunately, you can move your LLC to another state should you need to.

Options for Moving Your LLC

There are a couple of options available for legally moving your LLC. You could dissolve it in the existing state and start a new LLC in the new state. The problem with this is that you’ll have to change every contract you currently have to reflect the new name and information. You’ll also have to start over with your company’s credit history. Your LLC will essentially be a new company once you form it in the new state.

The other option is to domesticate your LLC in the new state. Basically, this means you’re simply moving it over to the new state without any other changes. The LLC can maintain its age and credit history as well as keep all of its existing contracts as is.

Domestication

When you move an LLC from one state to another, you need to go through a process called domestication. Each state has its own rules and forms, but the general process involves filing a document called Articles of Domestication with the new state’s registration agency. You’ll be required to create a plan of domestication, which includes:

  • Any changes you’re making to your Articles of Organization
  • The change in jurisdiction
  • Details on how the ownership interests in the existing LLC will be converted to ownership interests in the new LLC

How to File Articles of Domestication

The Articles of Domestication should be filed with the state registration agency, which is often part of the state’s Department of State. You should obtain the form and fill out all of the sections. Form differ by state, but most ask for:

  • The name of the existing LLC
  • The jurisdiction of the existing LLC
  • The registered agent for the existing LLC

You could also be required to file a new Articles of Organization and provide a certificate of good standing from the previous state your LLC was located in. You’ll need to pay a filing fee, which can range from $30 to $150.

Other Steps

After you file your Articles of Domestication in the new state, you need to take a few more steps to wrap up business in the old state and get started in the new state. Your LLC will need to:

  • Register as a foreign LLC in the old state, if it will continue to do business there
  • Register in the new state with the state tax collection agency and pay sales tax if it is providing services or retail sales
  • File Form 8832, Entity Classification Election, with the IRS and state that your LLC has been domesticated

Once these steps have been accomplished, your LLC is finally settled in its new home and ready to continue doing business.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.

How to move an LLC from one state to another varies by business and by state. Before making the move, you would need to check the rules and requirements for the state where you are relocating.

Information for Moving an LLC to Another State

Two options are available for moving an LLC. The first and simplest option is to register the LLC as a foreign entity in the new state while maintaining an active registration in the old state. This option lets you continue doing business in the new state and the old state. In this dual situation, you will be responsible for maintaining permits, paying taxes, and filing reports in both states. This can be expensive.

Registering as a foreign entity is also an option if the move is temporary and you plan to move back to the original state of operation. In this situation, you can continue operating as an LLC in the old state and register in the new state as a foreign corporation. You will keep the same employee identification number, permanent business address in the old state, and bank accounts while the LLC does business in the new location.

Having an LLC formed in one state and registered to do business as a foreign LLC in one or more states is acceptable. Delaware is the most common state that corporations choose as their corporate home even if they do business exclusively in other states.

If the LLC is organized in one state and registered to do business in another state, you will be held responsible for taxes and fees incurred by the LLC in the state where it was formed. This can also be costly. For example, California charges an annual franchise fee on all LLCs in the state, even if the LLC does the bulk of its business out of state. The current minimum annual fee is $800.

With the second option, if you plan to cut ties with the old state and make a clean start in the new state, you would file articles of domestication in the new state and dissolve the LLC in the old state. Check with the new and old states for their criteria for domestication. If either of the states does not allow domestication, you will then register as either a foreign entity or as a new LLC in the new state.

In most states, out-of-state business entities are allowed to domesticate or to convert to a domestic (in-state) entity. Keep in mind that an LLC registered in one state and moving to a new state must be registered with the new state to do business there.

Registering in a New State

To register as a foreign business, you must check with the state agency that handles business filings to determine if you meet the criteria for foreign qualification. If you do, you must submit the appropriate registration application form to the state agency. In some states, you can complete and submit the form for approval from the official agency’s website. In other states, the form must be mailed in.

The form will ask for information about the original registration of your LLC. You will need to provide the:

  • LLC name.
  • Date of registration.
  • State where the LLC was originally formed.

If necessary, you must also choose an alternate business name. This may be due to another business already registered under that name. This may also be necessary if the LLC name contains prohibited words not allowed in the new state. Then, you will complete these steps:

  • Hire and maintain a registered agent in each state. This is an individual or company responsible for receiving legal paperwork on behalf of the LLC.
  • Provide a certificate of good standing from the original state. The form is also known as a certificate of facts, certificate of existence, and certificate of status.
  • File, mail, or submit the application and filing fee. This is usually around $100.
  • A certificate of registry should be sent to you within five business days.
  • Obtain any necessary licenses or permits for your LLC.

Once filed and approved, stay current with the filing and reporting requirements for your LLC in each state.

If you need help with how to move an LLC from one state to another, you can post your legal need on UpCounsel’s marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies Google, Menlo Ventures, and Airbnb.

How to move your llc to another state

For those of you with an established business, how do you handle taking a business on the road? Do you need to register a new business in your domicile state? Let’s talk about how to transfer an LLC to a new state.

Let’s say you already have an LLC in Colorado, your “old” home state. Now you move to Texas as a full-time nomad and Texas is your new home state or domicile. Since your LLC was organized in one state and has now moved to a new state, you’ll need to register the LLC to do business in your new domicile state. To avoid having to deal with a business in two or more states, I suggest you transfer the LLC.

Transfer an LLC

How do you do this?

It’s not rocket science. I promise!

There are several ways to handle this, so let’s go over each one.

The procedure you’ll follow depends on your business goals and the states you are moving out of and into. Here are the options and the reasons you might choose each.

Domesticate Your LLC

Domesticating an LLC is the name for transferring an LLC from one state to another. Be aware this process might not be available in all states. If it’s not available, then this isn’t the process for you. If the states do allow it, then this is probably the best option for you set yourself up in your new home state.

The following states support domestication in one way or another. Please know there are exceptions and it’s important to confirm it’s possible before moving forward.

  • Arizona
  • California
  • Colorado
  • Delaware
  • District of Columbia
  • Idaho
  • Indiana
  • Kansas
  • Kentucky
  • Louisiana
  • Massachusetts
  • Maine
  • Mississippi
  • Nebraska
  • New Hampshire
  • New Jersey
  • Nevada
  • Pennsylvania
  • South Carolina
  • South Dakota
  • Utah
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming
Why domesticate an LLC?

This allows you to keep your tax ID number (your EIN), all bank accounts and maintain your credit rating as an established business. Plus, when you domesticate you’ll only have one location to worry about and no extra hassles of filing paperwork in multiple states or maintaining registered agents in different states.

To register an LLC as a domesticated LLC in your new state, you need to obtain a certificate of good standing from your old state. File that paperwork along with articles of domestication with your new state. Once that process is complete, you can close the LLC in the previous state.

Form a new LLC and dissolve the old

If domestication isn’t possible, then you may have to form a new LLC in your new domicile and dissolve the old LLC. This can get tricky if there are multiple members as you want to maintain similar interests in the business. I highly recommend getting professional guidance for this process if there are multiple members. If you’re a sole member LLC, it may be easier.

With this option it might be necessary to get a new tax ID number and establish new business accounts. You could also lose any good credit the business had built over years in existence. It may be possible to notify the IRS of an address change to maintain the same EIN. Again, I highly recommend getting professional help with this to make sure it is done right. No one wants to start off wrong, right?

However, closing the old LLC and opening a new one is still less hassle than dealing with operating a foreign LLC in your new state. This means you’ll have two LLCs to keep up to date on filings and maintaining two registered agents. I talk about this in another post where I discuss which state is best to form an LLC.

Who wants double the paperwork if it’s not necessary?

Other Things to Consider

Keep in mind an LLC is not itself a business entity. Instead, it chooses to be taxed as a corporation, partnership or sole proprietorship. This is important to understand so you know which is the best option in your new state. Tax classification is important to understand because states have varying tax rates and rules. I recommend discussing this with your tax professional to know all the tax implications of your new state.

Don’t forget to understand if you need to register with state and local tax authorities. This could be for sales tax, withholding tax and/or unemployment tax. Also, you might need a new business license from your local authority. Lastly, don’t forget to update your address with all your business contacts.

You don’t want important business communication lost, do you?

Moving an LLC to a different state is often a simple process. However, before you take the plunge please consider all the options and get a professional’s advice on the consequences of moving states.