A Guide to Moving a Business to Another State – Whats, Whens, and Hows

Sometimes, relocating a firm to another city is done for financial reasons, and other times for better conditions. But no matter what your reasons to move a company are, you will have to juggle a lot of tasks, from finding a place for your office to legal requirements. And don’t forget you and your family will probably have to relocate as well. Still, even if this sounds like a difficult thing to do, if you are organized and know what steps you need to take, you will have stress free move and prosper from this decision sooner than you think. Take a look at how moving business to another state can be done with ease.

Moving a Business to Another State – Legal Aspects You Need to Consider

A lot will depend on what kind of enterprise you have and what kind of relocation you require. It is not the same when relocating a small business of 10 people and a huge corporation with 2,000 employees. The legal implications will be different. Also, depending on whether you are relocating temporarily or permanently, you will have to take different steps.

Change LLC Formation State

If you are thinking of relocating your LLC to another state, the first thing on a to-do list will be changing the formation state. There are three options for the formation change:

• Dissolving – This means you will shut down the company in the old place and open it in a new one.
• Reorganization – Open a new firm and merge the old one into a new one.
• Domestication – This is a statutory transaction where you file a request to both states in order to finish a transaction.

Dissolution and Formation Mean State Tax and Debts Need to Be Paid

If you wonder how hard it is to move a business, the answer depends on the type of move you are planning. But if dissolving the company is your goal, you should know that this is probably the most complicated way but probably the best option in the long run. With this option, you will have to seriously consider where to move because rules and taxes are very different among the states. In order to dissolve an old LLC, you will have to settle all debts and liabilities, such as state tax.

You will have to transfer by contract all assets, properties, and liabilities from the dissolved LLC to a new one. Also, you have to consider federal income tax as well as taxes for forming a company or filing for foreign qualifications. Aside from the legal aspects, you will have to cancel or transfer utilities, find an office and consider laws in your destination of choice regarding employers.

Learn More About the Merge Option for an Entrepreneur

Another way to change formation is to register an LLC in your city of choice and merge the existing one with it. That means you will have to file documents in both states. All the assets of the old firm become part of the newly opened LLC or corporation.

The Easiest Is to Do Domestication

The easiest way to change formation is statutory transaction or conversion. If you are looking for the most efficient way to move your enterprise, this would be it. With this option, you don’t have to open LLC in the state you are relocating to. However, not all states have this option, so this should be one of the things to think about before you move.

The Temporary or Permanent Move Of LLC

The paperwork that awaits you will be different depending on whether the move of your LLC is a temporary or permanent one. In order to permanently move your enterprise, you will have to dissolve the old firm and register a different one in the location you are heading to, as we explained above. On the other hand, a temporary move means you will keep your previous firm and register a different one. For this, you will have to file for a foreign qualification once you arrive. Here are the steps for both options.

Costs of Moving a Company to Another State

Costs of relocating cross-country will not only be affected by the long-distance moving services you take. When relocating a company, a lot of things will influence your relocation budget. And before you start calculating the physical costs of relocating, you have to think about other factors. For example, maybe not all your employees will want to move, and you will have to find a fresh workforce which will cost you. Secondly, you will have to consider rent and home hunting expenditures.

You have to Consider How Will You Launch Your New Company to a Market

So, can you relocate a business? As you can see, it is possible but will this be a good and profitable decision, especially if you are relocating for the first time and have a small enterprise? If you wonder, “how do I move my small business?” that means you are smart and thinking ahead. Because getting into the unknown market is hard for big players, let alone for small businesses.

If you own a small business, the best moving tip is to do good market research before you head off, especially if you are opening a service enterprise. Not only that, you will require a good location but also a good marketing strategy and plan for the whole year. And if you don’t have enough money to last for at least one year, then you should postpone relocation. Or at least give yourself time to arrange things on time. But if you have to move at the last minute for some other reasons, you can seek help from the government or associations.

Contact SBDC as Soon as You Arrive

A long-distance moving with the help of friends is less risky even when you are relocating from home to apartment. If you have any struggles with new state regulations or want to learn more about government support for the new small companies, you can contact the Small Business Development Center at your destination of choice and ask them for guidance and help.

Don’t Forget You Will Have to Move Too

Aside from the fact you have to move your office, you will have to relocate your entire home. So if you wish your anxiety about relocating doesn’t go through the roof, we suggest you hire long-distance movers for your household as well. Remember packing pots and pans and learning how to protect items in storage units is not all you will have to do. You will have to find a place to live, find schools for your kids (if you have them,) change your address, and do other paperwork.

How to Find Best Long-Distance Movers Near Me

When looking for the best movers, the most important thing is to check if the mover is legit. This can easily be done through the USDOT number because all long-distance movers must have this number. Another thing to look for is what kind of services these movers offer. If they can provide you with all the services you need and a large number of trucks and movers, it means they are professionals and have been doing this for a long. If they can provide you with car shipping and packing alongside professional and available customer support, they should be your primary goal.

When searching for the best service, narrow down your choices to five companies and book an interview with all of them. If a mover gives you an estimation without seeing your office and the number of things they need to carry, this should be a huge red flag. Legit movers will give you a quote only after an in-person estimation. Only after you receive quotes from three movers, pick the one that suits your budget and needs the most. If the agent doesn’t seem legit or professional, skip them. Also, go online and see reviews other people left for their service. The judgment of the customers is by far the best way to see if the mover is good or not.