When your business needs to relocate, this process can involve a lot of paperwork, especially if you are moving to a new state. If you are an LLC relocating, you have several options for how to handle your registration paperwork:
- • Keep your registration as an LLC in your previous state, and also register as a foreign or outside LLC in the new state. However, this can be an expensive option because you might have to pay fees in both states.
- • Dissolve or liquidate your LCC in the previous state and form a new one in your new location. This will not result in any tax consequences.
- • Set up an LLC in your new location, then have members contribute membership interests from the previous LLC.
- • Set up an LCC in the new state and merge your original LLC with it. Provided that the original owners of the LLC still have at least 50% of their stake in the new one, it can be relatively easy to handle the tax issues.
It could not hurt to check with the IRS and research a little further before moving any business to a new state, just to make sure you are aware of any changes in your tax requirements.