Life can change in an instant. That means your business needs to be ready to change too! Whether you decide to pick up and move to another state for personal, financial or other reasons, there are so many factors to consider. Not only do you have to physically move all your stuff, but if you own a Limited Liability Company (LLC), you may have to figure out how to move that too.
Moving, in general, can be so overwhelming, but moving your business does not have to be! Incfile is here to provide you with all the resources and information you need so you can have your business set up before your boxes get unpacked at your new residence.
"Domestication" means the process of changing a company’s domicile or location. You are allowed to change the domicile from any state, but you can only move it into a state that supports domestication.
Some of the states that currently support domestication include:
District of Columbia
If your new state is not listed above, do some additional research to see if switching your company to your new state is possible. If you find out that your new state does not support domestication (and you don't want to contend with operating an LLC that's formed in one state and registered to do business in another), then forming a new LLC might be your only option.
Note that if you plan to run your business bi-coastal, that is a completely separate case you should definitely conduct more research on. Not yet sure which state you're moving to? Perhaps you should consider a state that is one of the best in which to run or start an LLC.
For the sake of this post, we'll assume you are moving your LLC to a state that supports domestication. With domestication, you are allowed to keep your same tax identification number or EIN, which helps make the process much easier. But there are a few more steps that can be trickier.
If you remember when you first formed your LLC, part of the process included creating Articles of Incorporation or Articles of Organization. In the Articles of Incorporation/Organization, you listed a bunch of important business things, including:
The articles of domestication are then drafted and filed with your new state. The final step is dissolution of the business in your former state and then submit some proof of this as part of domestication in your new state.
Before You Go
Need more information before you move your LLC to another state? Have any additional questions about some of these technical terms? Want a better breakdown of each and every step? Take a look at the following useful information on the different regulations and costs that states may have for LLCs:
The more knowledge you have before you make your move, the easier the transition will be for you and your business. This will also help ensure you can work seamlessly in your new state without making any paperwork mistakes. If you need assistance, Incfile is a great resource for more information, or to connect with an agent who can help you every step of the way. Moving can be stressful, but moving your business shouldn't have to be!
Lisa Crocco is a marketer for an international food manufacturer by day and a freelance writer/marketer for startups and small businesses by night. She's written for outlets like USA Today College, Career Contessa, CloudPeeps and Fairygodboss.