Take the worry and hassle out of moving your company.
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 company.
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.
Domestication is where your LLC 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 LLC 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.
This option is best when you want to move two (2) or more LLC’s into one, or Domestication is not available.
This process creates a new LLC that your existing LLC (or LLCs) 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 LLC 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.
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.
Foreign LLC means you keep your LLC 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 headaches if you don’t stay on top of the filing requirements of both states.
The Law 4 Small Business base price for moving a corporation is $199 + state fees and additional options.
Due to the often complex nature of these moves, it is always best to enlist a team of professionals to ensure the task is completed accurately and as quickly as possible.
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.
|Learn more →||By Domestication||By Merger||By Asset Purchase||By Foreign LLC|
|What is it?||Company actually changes where it’s “from”||Company “merges” into a surviving company in the target state||Current company ‘shuts down’ and opens as a completely new company in the new state||Keep the current company as is, but register it to do business in a new/additional state|
|Special issues?||Both states must agree; Must be in Good Standing||Must be in Good Standing; Works with more than 1 company, and can change entity types||Company’s existing contracts will need to be re-signed with the new company||Company is not moved at all; it will simply be registered to do business in an additional state|
|Available in all states?||No.||Yes!||Yes!||Yes!|
|Same Credit/DUNS Score?||Yes!||Yes!||No.||n/a|
|Same Bank Accounts?||Yes!||Yes!||No.||n/a|
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.
We take client satisfaction seriously. We are not in the business of up-selling or pushing services that won’t help you. We work as your partner to get the job you expect done.
L4SB is your long-term partner to help you and your business with the inevitable ups-and-downs, and everything in between.
We’re business lawyers, and we understand many small- and medium-sized businesses struggle just to meet payroll, let alone pay for legal services. That’s why we offer a range of flat-rate services, and reasonable hourly rates for everything else.
With over 200 years of combined business law experience, you can count on getting sound advice and solid representation.