You have a few options to move your LLC to another state. The most straightforward way is to register the company as a foreign LLC under that state’s laws and regulations.
However, this method can make it more challenging to conduct business in other states where your LLLC isn’t registered.
Options for Transferring an LLC to a Different State
- Keep your LLC as is and register it as a foreign LLC in another state.
- From one state to another, move the LLC.
- Make a new LLC and dissolve the old one. This involves filing Articles of Dissolution, which ends the existence of your current corporation and allows you to create a new one in the other state.
- Merge your LLC with a new one. This requires approval by both entities, but it’s less complicated than dissolving one company and starting over again with another.
1. Register it as a foreign LLC
Registering it as a foreign LLC may be more straightforward, and you won’t have to deal with the administrative headaches of incorporating it in another state.
If you need legal assistance from that state, later on, some attorneys specialize in working with foreign companies. To register as a foreign company with your Secretary of State:
- Complete an application for a foreign limited liability company (LLC) registration.
- Include any fees required by your secretary of state.
- Provide proof that the required fees have been paid.
2. How to move your LLC to another State
If you’re an LLC that wants to transfer your business from one state to another, it’s essential to know about the process of LLC domestication.
‘Domestication’ refers to a legal process by which an out-of-state business entity becomes a domestic business entity in its new home state.
States that allow for limited liability company (LLC) domestication include California, Delaware, Florida, Illinois, and New York (the most popular states).
3. Dissolve your LLC and create a new one
Dissolving your LLC and creating a new one is generally straightforward. You should first file a certificate of cancellation with the state where you are leaving.
The same day you dissolve, you need to file an application for reinstatement in the state where you are moving. You will also have to pay any fees and taxes associated with this process.
4. Merge your LLC with a new one
If you’re looking to merge your LLC with a new one, this is the easiest option for transferring your business. The process is straightforward:
- Choose your new state.
- Choose a name for your new business.
- Decide which assets and liabilities will go into the merger.
You’ll also need to decide whether you want to change anything else about your business model after merging with another company.
Conclusion
Hopefully, this post has clarified your alternatives for moving an LLC to another state. It’s not always easy to decide which is right for your business, but it can be helpful to think about what steps you want to take next.