Jump to Main Content
USA flagAn Official Website of the United States Government
Managing a Business

Blogs.Managing a Business

Register

The Legal Steps Involved in Moving Your Business to a New State – FAQs Answered

Comment Count:
11

Comments welcome on this page. See Rules of Conduct.

The Legal Steps Involved in Moving Your Business to a New State – FAQs Answered

By Caron_Beesley, Contributor
Published: April 25, 2012 Updated: January 9, 2013

Businesses move all the time.  If a move is in the cards for your business, what should you do? Maybe you’re expanding and are out of capacity at your current location, or maybe a move is for personal reasons. Maybe you want relocate to a state that is more favorable to small businesses, such a state without any income taxes

Moving a business raises many questions, particularly questions about legal and regulatory matters. In fact, some of the most common questions posted by small business owners to the SBA.gov Community are about the ramifications a relocation has on taxes, registration and incorporation.  

If you’re thinking of moving or have already relocated your business, here are some answers to some of those questions:

Q: I operate an LLC. What steps do I have to take when I relocate?

A: It’s always best to consult an attorney if you are moving your LLC to a new state since there are several options open to you that require careful consideration. Here are your choices:

  1. Continue the LLC in your old state and register as a foreign (out of state) LLC in your new state. This will mean more paperwork (you’ll need to file duplicate annual reports) and tax filing. Reporting for multi-member LLCs can get more complex.
  2. Liquidate the old LLC and form an LLC in your new state.
  3. Register a new LLC in the new state and have each member transfer their membership interest (percent ownership) from the old LLC to the new LLC in the new state.
  4. Form a new LLC in your new state and merge the previous LLC into it. The IRS views this as a continuation of the old LLC and you can continue with your existing EIN. Assuming all LLC members still have a 50 percent interest in the capital and profits of the new LLC, there are no tax consequences either.

Q: What about Corporations?

A: Corporations (“C” or “S”) have similar options to LLCs:

  1. Continue the corporation in your old state and register as a foreign corporation in your new one.
  2. Dissolve the corporation in the old state and form a new one
  3. Reorganize (tax-free) and merge the old corporation into a corporation formed in the new state.

Talk to an attorney about tax ramifications, filing and ongoing reporting requirements, as well as the specific requirements in your old state regarding dissolving a corporation.

Q: What about sole proprietors or partnerships?

A: Moving a business out of state as a sole proprietor or partnership is pretty easy. You simply register your new business using the “Doing Business As” (DBA) registration process in your new state (usually at the county office) and discontinue your old one. This SBA guide has more information on the DBA registration process.

Q: I run an online business. What happens when I move?

A: Although your online business has no boundaries in terms of where you can do business, if you do move your business, you must comply with the laws that apply in your new state. So, even if your online business remains the same, you still need to legally move your business entity. Refer to the process described above for sole proprietors, partnerships, LLCs or corporations.

If you operate an e-commerce site, you’ll also need to apply for a sales tax permit in your new state. Read more about sales tax and selling to customers in different states in this earlier blog: Sales Tax 101 for Small Business Owners and Online Retailers.

Q: What about licenses and permits?

A: Moving a business involves almost the same legal and regulatory steps as starting a business, including obtaining the right business licenses and permits. Even if you intend to work from home, you’ll still need a home occupancy permit and a professional business license from your county. SBA’s Business Licenses and Permits search tool can help you find what’s needed in your new state. Be sure to check local zoning laws too.

Q: What impact does a business move have on my taxes?

A: Since you are moving out of state, you’ll need to close out your tax year in your old state (often as simple as checking the “Final Return” box on your state return). At the federal level, depending on your business structure, there may be several tax consequences to consider before and after you relocate. Every business is unique, so talk to a tax expert to get a quick grasp of your business tax responsibilities in the first year of your move.

Don't forget that you can deduct or capitalize the costs incurred during business relocation, including moving costs, relocation site scouting trips, travel and meeting costs. Get more guidance on small business expenses and tax deductions here.

Related Articles

About the Author:

Caron Beesley

Contributor

Caron Beesley is a small business owner, a writer, and marketing communications consultant. Caron works with the SBA.gov team to promote essential government resources that help entrepreneurs and small business owners start-up, grow and succeed. Follow Caron on Twitter: @caronbeesley

Comments:

This will be teh master in vietnam next few years when doing online bussiness.
cheap jerseys wholesale It is just the right place top enter for that elusive design and style you have been researching for. Louis Vuitton monogram canvas bags run from 375 and up, with the majority of the bags selling for over 1000. In contrast, the sheep, the poorest 60% of the population receives 21.35% of all income. bag louis vuitton It possible you seize the profundity belonging to the mode across the identification of the actual Louis Vuitton Bags . Arnault in town to upon the of Vuitton flagship from Bellagio to the Crystals Mall on the strip. What we stock, the best way we select to present ourselves, offers off a collection of sophisticated codified signals. loui vuitton Louis Vuitton--a long-standing go-to brand for fashionable handbags, shoes and accessories--is celebrating the Hindu holiday of Diwali throughout the month of December. The duration and the nature of a journey will to a large extent determine the size and probably the type of a bag to use. Accounting because that when he goes to school just probably worrying right now and saying. louis vuitton soldes I was very lucky that I had great people working for me who pushed me a lot. Karaoke version > Free Karaoke > In French : All catalog . In this post, he talks about how government-endorsed More . louis vuitton sac a main We expect an in-store fash ed riot for those bad boys (but anyone who owns Margiela's flare-covered boots is already ahead of the rest of us).. forced the audience to focus on black-and-white pictures playing in the background of immigrants building skyscrapers. Additionally, Lv can be famous with regard to add-ons, who have earned dominance in Artist louis vuitton official .. sacs louis vuitton pas cher To make money together with satisfy customers who ought to like replica brand bags, there're many online B2C websites that sell replica wholesale handbags,such as cheap replica Hermes designer purses storeThe market is filled with replica designer handbags. Shop on the third floor, through the long corridor, and an array of small shops. So as to absolutely get rid of the Peak Safeguard 2010 malware infection, you ought to use a instrument which is proceeding to have rid of each of the plan recordsdata the virus has, too as each of the other concealed infections it can have placed onto your COMPUTER.. Discount Cheap Louis Vuitton Aside from its LED flashlight that is available in useful, it is very discreet in a very pen structure. While both of these lines take the guess work out of choosing the right accessory it is ultimately your decision what you pair the ultra fashion handbags with, and exactly what statement you want to make to the outside world.. Most autos have basic features slightly like airbags and some form of ABS brake buy Others may have more advanced features one of these as a blind area warning system or otherwise a multi function rear see camera. outlet louis vuitton So in this situation! I'd normally be disappointed but appreciative of their sincerity and I'd say! don't worry! mistakes happen. Search leather handbags using the Internet. With so many choices, sometimes people do not understand the purpose and the advantages of each type. louis vuitton sito ufficiale borse :O) Quant Sabastien Cabot a dcouvert Terre-Neuve son bateau avait peine avancer tellement il y avait des morues. The investment in the Greater store will actual lv totes incorporate women's garments, add-ons and footwear men's types, generally louis vuitton firenze negozio located in distinct Christian Louboutin Uk merchants, will not yet be accessible. Definitely one of the more trendy styles available this season and a fashionista must have. piumini woolrich Furthermore, pediatric nurses are the entrance line educators to father and mother, furthermore to their medical duties.. Ever since he broke up with his second wife Jo in 2008, Rolling Stones guitarist Ronnie Wood, 64, has been dating women who are young enough to be his daughter. She hit the big note, held it, brought it to a breathless ending and waved her fist in a little athletic flourish, as if to say, "There, I did it.". louis vuitton usate The brand likewise manufactures a handful of accessories like scarves and shoes and small leather items such as purses and wallets. Even though you might have the green bucks saved in the locker, the Hermes bags are made to order and there is a waiting list of sometimes providing a year or several. In fact, dogs lose body heat primarily through their ears and the pads of their feet so that cute dog sweater is not as helpful as it seems. piumini woolrich I still wear a similar original bag in my small arm. Amirahmadi, 65, has lived in the United States for 40 years, calling it country. If you are a excellent listener who can genuinely empathize alo . acheter louis vuitton pas cher In a Times feature previewing the show, it was reported that nearly 1 million tickets were expected to be sold during the show's three-year run. Hermes bags are the most exclusive bags in the world. But without a doubt, these bankruptcies are not high young woman wear, but they may make someone search incredible. sacoche louis vuitton Mulberry Fork is a typical river for the region. A double-zip major closure allows you to generate an individual's valuables outside the backpack efficiently. Don forget, these are noticed in addition to they just do not look great, use not really put it on with any kind of issues! Underwear attire, without a doubt, work better the moment damaged using a breast support, along with a independent brand bustier breast support is supplied in useful.? Tankini or even tankini of which peeks below the dress up appears to be superior relating to the water, using ls zones, continue with the breast support with lingerie the summer months attire 2012 Asymetric the summer months Way attire 2012 the most famous from the summer months attire 2012 is actually uneven dress up small before, lengthy with the again.
This is amazing! I am really glad that you have written it so simple and detailed, very trustworthy source for this kind of information!
Along with these steps...You also need to have proper knowledge about the place and a better source who can help in bringing up your business!!
The biggest problems businesses have had in moving offices whilst moving offices is loosing their number if its not in the same exchange of BT. Choosing to go with VoIP solutions means you no longer have to loose your phone number you simply port it to the clouds and take it any where in the world.
Along with these steps...You also need to have proper knowledge about the place and a better source who can help in bringing up your business!!
This is amazing!
This is amazing! I am really glad that you have written it so simple and detailed, very trustworthy source for this kind of information!
The biggest problems businesses have had in moving offices whilst moving offices is loosing their number if its not in the same exchange of BT. Choosing to go with VoIP solutions means you no longer have to loose your phone number you simply port it to the clouds and take it any where in the world.
This is amazing! I am really glad that you have written it so simple and detailed, very trustworthy source for this kind of information!

Pages

Leave a Comment

You must be logged in to leave comments. If you already have an SBA.gov account, Log In to leave your comment.

New users, Register for a new account and join the conversation today!