Are You Considering Moving Your LLC to a New State?

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Relocating a business from one state to another is not as difficult as you may think. In fact, business owners have three different options when it comes to moving your LLC to another state. These include the following:

Maintain two separate LLCs: You can keep your old LLC and create a second LLC as a foreign entity in the new state. While each state has different rules re this process, qualifying typically entails completing paperwork (such as a Certificate of Authority application with the Secretary of State Office), publishing a notice, providing a certificate of good standing from the original state, paying a fee of $100 to $300, and designating a registered agent to accept documents for the company.

Keep in mind that in addition to paying taxes on the new LLC, you will also need to continue paying taxes and fees on your original LLC. As a result, this choice can become expensive for businesses.

Dissolve the old LLC and create a new LLC: For business owners who do not want to maintain two entities, a good option is dissolving the old LLC and developing another LLC in a new state. Each state has different rules re the dissolution of an LLC, so be sure to follow these state-specific rules.

Merge the old LLC into a new LLC: Merging an old LLC into a new one saves you the trouble of dissolving the old LLC. Each state has specific procedures for this merger, so be sure to follow these rules. They typically include:

— Developing a written plan of merger to be approved by all LLC members.

— Filing articles of merger with the Secretary of State from the original state of formation.

The rules for moving an LLC from one state to another differ from state to state, as well as business to business. While the move is not difficult, it is vital to check the exact requirements and procedures before making the transition.