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:

[url=http://ghislandi.it/include/lib/sciarpa-louis-vuitton-mAIYv.html]prezzi louis vuitton[/url] Hsiao daLiao Shun Yuk across the street Qi Wen suddenly do nusekeeper entreated, saydings hand game employed by asty. Lovingly remembered by many other family members and friends. I remembered everyone's lines so when an actor became sick, I would stand in for them. [url=http://ghislandi.it/dati/box/woolrich-penn-rich-mtjJz.html]woolrich sito ufficiale[/url] Harris was seen leaving with a big chocolate brown bag, large enough to contain another very large bag. Additionally, many of such double stratum sheepskin shoes can also be acceptable running footwear to decorate on this place using long wintertime, that climatic conditions is also serious sweet. Now, this would definitely fill in more than just your day essentials. [url=http://www.chialagunaresort.com/facebook/new/sandali-louis-vuitton-ZQBZ8.html]borsa louis vuitton prezzo[/url] Your woman reached the woman's desire through effort, skill and a essential celebrity endorsement. This is despite the fact that they make use of fine quality materials and employ flawless stitching and components on their products.. This is why quite Louis Vuitton ladies handbag greater frequent girl wants merely is caused by the reach of the good deal. [url=http://www.ironbike.it/webtv/lv/Index.asp?id=119]sac a main louis vuitton en solde[/url] It appears extremely comparable in the direction of reliable as well as found to can be found to be extremely durable. Perhaps they have spotted, among the madness, VIP clients shopping - one woman buying three bags in different colours, another trying on various styles of shoes.. She doesn't design eveningwear. [url=http://www.chialagunaresort.com/facebook/new/sciarpa-louis-vuitton-Nlzhq.html]borsa louis vuitton prezzo[/url] Pakistan. Due to the fact was built in 1854, Louis Vuitton happen to be an innovator in the style demand. The Royal Irish Ranger nonetheless wear these Irish military services kilts today. [url=http://www.chialagunaresort.com/Temi/2014/woolrich-parka-vUaH6.html]woolrich prezzo[/url] Probably less than $100, but you never know. Mulberry makers household leather products which already have glossy material contrary to the design model mulberry handbags. No matter how harmless it might appear or how excellent other individuals allow it to be sound, do not do it. [url=http://ghislandi.it/dati/box/woolrich-penn-rich-mtjJz.html]prezzo woolrich[/url] I made her pull the adds and give them to me haha. but our louis vuitton outlet are all quality autentic and the material are the best,you can let your heart down for shopping on our website. The initial Bamboo was created by Celine bags series in 1947, it had been a small handbag in pigskin having a curved bamboo handle. [url=http://www.costadelsinis.it/dati/ContentManager/site/woolrich-donna-outlet-G78yv.html]woolrich prezzo[/url] Jill Johnston, who chronicled feminism, lesbianism and upheaval in the 1960s and 1970s as a weekly columnist for the Village Voice, has died in Connecticut of complications from a stroke. Toutefois, en quoi consiste exactement ce processus ? Et qu'est-ce qui constitue un avantage net ? La Loi sur Investissement Canada, qui oblige le gouvernement examiner les investissements importants effectus au Canada par des non-Canadiens, fournit quelques facteurs qui doivent tre pris en compte, tels que: l'effet de l'investissement sur le niveau et la nature de l'activit conomique au Canada, et l'effet de l'investissement sur la concurrence dans un ou plusieurs secteurs industriels au Canada. Looking from the outside, this bag may looks similar to other types of handbags in shape and size, but it reflects amazing quality with the use of refined exclusive Louis Vuitton Monogram canvas materials. [url=http://www.chialagunaresort.com/Temi/2014/woolrich-donna-N3cGD.html]prezzi woolrich[/url] Lorsque les sacs main n'est pas en cours d'utilisation, ceux-ci peuvent plac dans un sac en tissu qui peut permettre l'air de circuler travers. The Villa Rotonda at Vicenza, designed by Andrea Palladio, is an Italian Renaissance example. Vous devriez maintenant voir ce que n'est tout simplement pas tous les vuitton synthetic version doable. [url=http://ghislandi.it/include/lib/alma-louis-vuitton-UR6s8.html]borsa louis vuitton prezzo[/url] In fact, it is more than just buying for a need of handbags. You can subscribe to this via a feed or email. The Tods Hampton Secchiello Marketing wouldn't to begin with bring my attention, but I think it has some possibilities. [url=http://www.costadelsinis.it/dati/ContentManager/site/penn-rich-woolrich-En6df.html]woolrich parka prezzi[/url] What is additional, the financial crisis drives folks to a quite tough situation. The quilted design basically came as an inspiration to Hermes from the jackets that jockeys wear. It''s not uncommon for some of these designers to have a waiting list for their particular designer bags that is over all year long. [url=http://ghislandi.it/include/lib/alma-louis-vuitton-UR6s8.html]prezzi borse louis vuitton[/url] Hermes which includes a long and glorious past, has entered the latest century. She then began to complain about how she was unable to find a weekend bag that was suitable to her liking hermes birkin . Michael Jackson, (1973): He was still best known as a member of the Jackson 5 when Charlton Heston introduced the future King of Pop as someone whose is mature, but whose age suggests he shouldn even be up this late. [url=http://www.chialagunaresort.com/facebook/new/louis-vuitton-svizzera-lQC1f.html]louis vuitton borse prezzi[/url] from tyle-snob-zone. Groe Louis Vuitton von vielen Frauen, die sie tragen, sind genossen Sie sind meist stilvoll und versital da man fast alles was Sie brauchen in ihnen tragen kann. But in the case of Masela vs. [url=http://www.chialagunaresort.com/Temi/2014/woolrich-donna-N3cGD.html]woolrich parka prezzi[/url] They would pay considerable amount for fashion's sake. a outstanding offer of retailers possess a tendency to minimal price their goods and alternatives on their founding anniversary or nation wide times. Moreover Best lyrics combined with melodious tune also fair merge of CELINE DION SONGS make her album successful.
This will be teh master in vietnam next few years when doing online bussiness.
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!