So you’ve moved to another country -for whatever reason- and are wondering what to do about the LLC you’ve set up in your current state. Well, don’t worry, you can easily switch your LLC to another state, but you just need to be aware of the options other states provide when making this move.
Processes of running LLCs vary by state and by business. This article will help guide you through the best option to fit your needs.
The first thing you should do before you shift your LLC to another state is consider consulting an attorney in your new state to go over the logistical details and to ensure this transition goes smoothly. This would also be essential in ensuring your LLC meets the new states requirements.
When moving your LLC to a new state, you have three basic options:
Domestication is the name given to the process of transferring an LLC from one state to another. It is also the easiest process of handling the move in terms of the move being a permanent one. You can check in the table below which states allow domestication as not all states offer this.
States offering Domestication
|District of Columbia||Nevada|
To begin domesticating your LLC, you’ll need to first obtain a Certificate of Good Standing (from your old state) and file articles of domestication. You will do this through either your secretary of state or an agency in charge of business filings, in your new state. Then you’ll dissolve the LLC in your old state.
Domestication lets you keep the same bank accounts, tax ID number, credit rating and you’ll be able to maintain all previous business relationships.
You can keep your old LLC and start a new one in your new state if your choice of moving to a new state is going to be temporary. This will be the most expensive option and will establish your business as a Foreign LLC.
Your expenses will be going towards paying fees, keeping registered agents in your old state and new one and the supporting requirements. If you’ll be switching between states soon, this option is the best for you as it will allow you to keep the bank accounts and other information same, while also operating a new business.
You’ll need to check the foreign qualification requirements and submit a form to the state agency before you can continue doing your business in another state this way.
If you’re wanting to merge your business into a new corporation or starting an entirely new business, you’ll have to begin by dissolving your old LLC. Different methods such as liquidating the old LLC or merging the two LLCs are ways you can dissolve the old LLC. You can even ask the members of the old LLC to become members of the new LLC as a way of dissolving. Consulting a local business attorney will help you make this process more secure as it can be the most difficult step. Luckily, BizInc offers business attorney solutions and handles the paperwork for these matters!
Cases such as the state you choose to move to not offering domestication makes this option a good fit, despite the inconveniences of possibly losing good credit and getting a new Tax ID number.
It’s important to know the guidelines put into place by your old/current state and the new state you’re moving to. After learning about those your business transition -whichever method you choose- and your move will run much smoother than if you did not know the governing state rules about businesses.