Move Corporation to a Different State

The process of moving a company from state to state can be tricky and there are a lot of moving parts- but L4SB is here to help.

No two business moves are alike because the rules can be different from state to state. Let us guide you through the process and paperwork. First, decide how you want to move your Corporation.

There are four ways to Move a Corporation

The biggest issue is keeping your FEIN. If you need to keep your FEIN, then you need to pick Domestication (if available) otherwise Merger. The IRS will not permit you to change entities without changing your FEIN, and only Domestication and Merger are considered “the same entity” once everything is said and done.

Eliminate the Worry, Hassle and Stress of Moving Your Corporation

You decide what is important to you when the move is complete. The biggest question is, do you care about maintaining the same FEIN, bank accounts, credit and/or other financial accounts?

If so, then your option is Domestication (if available) or Merger. Domestication is the preferred option, because it is less expensive and faster — although not all states will support Domestication.

If you don’t care about the FEIN and can start over, then moving is even easier. You can simply “start over” or foreign file in your new home state.

Each option has its pros and cons, advantages and disadvantages. Read below to learn more, or click “GET STARTED” to see what options are available to you and the costs, given the states involved.

What is a Domestication?

Domestication is where your Corporation literally moves from one state to another. This is only available when both states permit this (meaning, if only one state permits this, even the target State, you cannot use Domestication). The Corporation remains the same, it’s just “domesticated” in a new state. It keeps its same FEIN. It keeps its credit, bank accounts, merchant accounts and everything.

This is preferred over Merger for two big reasons: It’s less expensive and it’s faster. If you want your company “as is” but in a new state, if permitted by both states (i.e. the state you’re leaving and your target state), this is the preferred method to use.

We will do all the hard work: We will coordinate with the various states, and work with you. Hassle free. Worry free.

What is a Merger?

This option is best when you want to move two (2) or more Corporations into one, or when Domestication is not available.

This process creates a new Corporation that your existing Corporation (or Corporations) merges into. As mentioned with Domestication above, a Merger permits you to keep your existing FEIN, bank accounts, merchant accounts, etc. You can also use this method to convert from one entity type to another. For example, converting an Corporation into a corporation.

The disadvantage of a Merger over the other options is cost and time. Merger is the most expensive option, and takes the longest time to accomplish.

What is an Asset Purchase?

Asset Purchase means you form a new company in your new target state, and sell all of your assets and liabilities to the new entity, and close / dissolve the old entity.

The advantage of this method is the cost and speed: It’s fast and inexpensive. The disadvantage is that you are starting over in your new target state, which means a new FEIN, new bank accounts, new merchant accounts — new everything. Another disadvantage is that you will need to renegotiate and re-sign any contracts that exist with the old company.

This is a great option for small or new companies, with little existing cashflow, credit, financial relationships or outstanding contracts. Conversely, it may not be a great option if your company has contracts it cannot easily terminate or otherwise doesn’t want to terminate.

What is a Foreign Corporation?

Foreign Corporation means you keep your Corporation in the existing state, but you register it in the new state too.

It’s almost like your company has dual citizenship. It exists in both the original, as well as target, states.

The advantage is cost and speed, and if you’re doing business in both states, this is probably the preferred method depending on whether you feel the long-term viability of your company should be tied to both states.

The disadvantage is the opposite of the advantage: You’re registered in both states, and potentially have to deal with ongoing tax, annual reports, and more, for each state. This will increase costs and headache, if you don’t stay on top of the filing requirements of both states.

  What’s Included

• The comfort of knowing that you’re working with a respected law firm. We are not anonymous, we maintain malpractice insurance, and we train our employees to maintain the confidentiality and anonymity of our clients.
• Availability of licensed business attorneys to answer your questions (for an additional fee).
• Attorney-client privilege and confidentiality.
• Review by a licensed attorney.
• We’ll provide simple edits to your Bylaws, to make it compatible with the target State (or give you a template if you do not have one).
• If appropriate (i.e. for Asset Purchase and Foreign Corporation), we’ll give you an e-Book to help you with your transition.
• We will verify beforehand the availability in the target state of the name you want to use for your Corporation, potentially saving you time/money.
• Coordinated paperwork and filings in your original and target state.

  What’s NOT Included

• This service does not include dealing with any tax issues, whether federal, state or local.
• This service does not include local business licensure, permitting, professional licensure or other license issues.
• This service does not include unforeseen expenses, including but not limited to any costs of bringing your Corporation into compliance in the original state, paying back taxes or fees owed to any state, resolving naming problems or conflicts, or new fees or changes in fee structures at any state.

Fees, process and the fine-print

This is a new, experimental service offering. Please be prepared for some trial-and-error — even the states themselves can get confused about this process.

Rules are changing quickly. Our ability to successfully navigate the process depends on you, the status of your company, and whether the original and target states agree to cooperate.