Moving a business to another state might be motivated by many factors. Whether you’d like to move your company because you believe that a better business climate could scale your enterprise faster, or you think there are beneficial tax conditions, or some of the states have a program for financial support, moving your business to another state must be done lawfully. Along with law regulations, another thing to resolve when relocating your enterprise is to carefully plan and prepare the whole process. So, before you organize the relocation itself and choose a long-distance moving company to move your enterprise to a new address, check out this article and find out the most important issues you should consider when planning to start your new biz adventure.
Moving a Business to Another State – How Do I Move My Business to Another Location?
Moving business to another state implies adjusting to the legal regulations differ all across the states. Depending on the type of biz you run, whether it is a sole proprietorship, LLC, or corporation, the regulations will differ.
If you’re running a sole proprietorship, the process is pretty straightforward since you’ll only have to re-register the firm. On the other hand, the procedure of moving a company to another state is quite complicated if you’re running an LLC or corporation.
How to Move LLC – Legal Issues
Whether you run a corporation or LLC, the whole process of relocating a business is quite complex and similar, too. For that reason, we decided to answer your question: What can I do about moving my business to another state? Here is how you can do it.
There are three different options to choose from:
- Continue on running the same company where you are coming from, and register afterward as a so-called foreign company running an enterprise in the new place and address.
- Liquidate the existing enterprise, then start a new firm in the city you choose to run your enterprise in.
- Perform a reorganization and merge the old enterprise into the new one at an address you’ve chosen to run the enterprise or corporation.
Another possibility is to domesticate your LLC company. This is the simplest way of transferring your firm. However, you should be cautious if the states you’re relocating your enterprise to allow this practice. The domestication process of foreign firms implies:
- Obtaining the certificate of good standing in the old place,
- Filing the articles of domestication of the foreign firm with the Secretary of State or other agency, and
- Dissolving the previously existing enterprise
The domestication process allows the LLC owner to keep all the bank accounts, old credit rating, and tax ID numbers and gives a really beneficial starting point.
Do I Need a New EIN If I Move my LLC to Another State?
New Employer Identification Number (EIN) is generally needed only in cases when the structure of ownership is changed. So, the definite answer will depend on the solution you choose for organizing your new enterprise.
No matter what you decide while reorganizing your LLC, be sure to work closely with an experienced attorney that will take you through the entire process and make sure everything is lawful and properly registered.
Additional Advice on Legal Concerns
Remember that having an attorney by your side can save you a lot of time, so make sure to find a specialized one that will present you with what states provide the best conditions for biz relocation or establishing the corporation. Also, ensure hiring an attorney who is familiar with procedures that will provide you with properly registered documentation with all institutions, especially when it comes to tax. Check the video below and find out more about what an attorney would advise you in that situation.
How Do I Change My Business Address to Another State?
In order to continue the lawful operation, there are a couple of things you should undertake to ensure that all the rules and regulations are fulfilled.
As an LLC, you are required to inform the relevant authorities about any change regarding your enterprise. If you’ve changed the address, you are expected to notify the appropriate agencies and update all the forms. Failure to do so may result in losing the license, and this is something that you definitely want to avoid.
These are the actions you should take when changing your company’s address:
- Notify the IRS regarding the new address, and ensure filing the Form 8822-b. Here you will list all changes regarding address, email address, or a responsible party that will enable you to pay all taxes in time.
- Fill out amendment forms with the new state’s authorities. Keep in mind that every part of the US has different requirements, so this is not a universal regulation. Missing to file out the certain amendment form, you’re risking your right of operating in a particular place.
- Notify the state’s tax agency regarding address changes. This is another mandatory requirement if you want to avoid paying fines and never miss the deadline for paying taxes and fees.
- Notify the licensing agencies if you need a license for work, and pay all the taxes, if any.
- Notify the Insurance Agency because, without the correct address, your insurance policy won’t be valid.
- Fix the address in the post office, so your mail could be sent to the right location, and avoid paying penalties.
- Notify your partners and clients about your new address, and don’t forget to fix it on the website.
Although the whole process is considered a simple one, consulting your attorney or accountant would always be a good idea to be absolutely sure everything is done in the proper way, especially when it comes to taxes and filing the documentation you need to register the firm which is different all across the States.
And of course, don’t forget to check how to change your address and personal IDs, since you’re a responsible person for your enterprise, and all the registered data has to be accurate.
How Can You Transfer a Business From One State to Another?
Although cross-country moving might be challenging, with a proper plan, organization, and support of professional long-distance movers, transferring your office won’t be a mission impossible.
Announce the Long-Distance Moving to Employees
After you make a definite decision about relocating your enterprise, survey your employees whether they would be willing to relocate with the enterprise they work for or they will rather continue their life in the current location.
When you have a definite list of people who are relocating with you, it is the right time to make the team in charge of relocation. They will organize the departments and make sure that everything is packed. Try to communicate with them regularly, and make a packing checklist for office relocation, so you can easily keep everything under control. You can also provide your colleagues that will relocate with the enterprise with an inventory list for relocation and show them you respect their decision to continue cooperating with you.
Try to brainstorm all important questions with your associates before the relocation experts knock on your door. For example, every bureau has valuable technical devices, so talking to your colleagues about how to pack electronics will undoubtedly help move it safely. Furthermore, if you have in possession some priceless piece of art, such as paintings or sculptures, try to inform in time how to pack sculptures to keep them intact.
Planning for the office relocation isn’t easy. However, if everything is done in time, there is no reason why the relocation wouldn’t be successful.
Choose Reputable and Professional Cross-Country Movers
If you’re relocating your enterprise from one to another coast, then you will definitely need some time determining what cross-country movers to choose. Certainly, if you relocate from the East Coast, you will choose among the best East Coast movers. And opposite, if you’re relocating from the other side, you’ll have to decide what cross-country moving services and West Coast movers you will choose. Choosing the right mover is of utmost importance since there are relocating scams to beware of and avoid.
Before making a final decision on a relocation company that will transfer your company’s equipment, carefully revise what type of long-distance moving services you can count on. There are a few typical questions you should not miss to ask the mover:
- What type of moving services a particular mover offers.
- Are they specialized in corporate relocation services?
- Do they offer professional packing services, and could they pack your entire office?
- Could they unpack all the stuff?
- Is there any possibility of organizing a storage unit until you set up space?
- When can you book an estimation of costs?
When you have all this information gathered, you’ll be ready for a final move and start packing items for the relocation.
Although relocating biz might seem like a never-ending process at the beginning, it is actually simpler than expected. All procedures will go much easier if you inform in time about the data and documentation you need to collect. Of course, if you want, you can engage an attorney specialized in those matters, which will help you finish everything by law. Now you planned everything properly, booked your moving services in time, everything is ready for a fresh start.