How to Move an LLC to Another State
There are a few options if you want to move an LLC to another state.
- File as a foreign LLC in the new state. Registering to do business in another state as a foreign LLC will allow you to continue running your business in the first state and in the second state. This is a good choice if you plan to have a location in both states or will do business in both states on a regular basis. You will also need to appoint a registered agent for the LLC in the new state.
- Merge or Convert the LLC in the new state. Merging an LLC means that you create a new LLC and merge the old one with the new one. Some states will allow you to convert your LLC, which is often a better choice than merging two LLCs. If the state you plan to relocate to allows it, you can register as a foreign LLC in that state, then convert the foreign LLC to a domestic LLC. This is often referred to as “domesticating” your LLC. This provides a pretty seamless transition and allows you to continue operating under the same LLC and EIN.
- Dissolve the old LLC and start a new one. This is a good option if your state does not allow you to convert your LLC or if you do not want to be registered in two states. You can dissolve the first LLC and liquidate the assets. Then you form a new LLC in the new state and contribute the old LLC’s assets to the new one. This process can be a bit cumbersome, though, as you will need to draft a new Operating Agreement, get a new tax ID number, and essentially start all over with the new LLC.
There are many things to consider if you want to move an LLC to another state. Because each situation is different, and the laws of each state will vary, it is always best to work with an attorney who can guide you through the process. Denver business attorney Aiden Kramer can assist you with moving your LLC to Colorado or moving your Colorado LLC to another state. Contact me today to get started.