Moving an LLC to Florida
Are you interested in moving an LLC to the sunshine state–Florida? It’s always had a certain appeal, but it’s become especially attractive to business owners and entrepreneurs from all around over the past few years. This is for several reasons–Florida has no personal income tax requirements for its residents, and all of our government branches have a strong pro-business record, just to name a few.
Thankfully, there are many ways a business hoping to move to Florida from another state can do it–which we will be discussing below.
How to Move Your Business to Florida
Generally, there are four options you need to know about if you’re thinking of making the move to Florida for your business. All of these options have their upsides and downsides that you should speak to us, at Dowd Law about.
Foreign Qualification or Registration
Most of these methods involve changing your LLC formation state. To do this you need to file for a “foreign qualification.” Any company working outside of its original state is known as a “foreign entity” and to legally do business in the Sunshine State, as a foreign entity, you’ll need to register with the state’s DoC (Division of Corporations.)
This could be the best option if you don’t plan on living in Florida full time, as if you decide to go this route you will need to comply with all the laws in Florida, as well as in its original formation state, and any other jurisdiction where it’s filed a foreign qualification successfully. In Florida, it includes keeping a Registered Agent in the state and filing an Annual Report with its associated fee.
Domestication or Conversions
Domestication and Conversions are other options for bringing your business to Florida. A great thing about this state is that we have an established process for turning foreign entities into Florida entities, while each state may have its terminology. Domestication refers to Corporations, while Conversions refer to LLCs.
Moving through this process is particularly useful because it allows you to change your business into a Florida entity while keeping important aspects like its original EIN, property rights, and even more. In most cases, you won’t even need to change names unless it’s in use by a pre-existing Florida entity.
Merger
Another preferred method for relocating a company to Florida is by using a merger. This is an extra good option for companies from California and New York that don’t allow domestic businesses to directly convert or domesticate into foreign entities. When doing this – you’ll first need to form a Florida entity that will absorb your original business. Taking its assets and more while changing your state information.
Moving an LLC – Dissolve & Start Again
If the above options don’t meet your needs, then it may just be best to dissolve your previous business and then start fresh in your new home state. However, prepare for some hassle here. Reformation means a new tax ID number and establishing new business accounts in addition to possibly losing your previous credit. Assets will need to be transferred by contracts and there may be tax repercussions and reporting obligations to comply with.
This can be a lot more complicated, and expensive than the other methods. Let our business law experts help you take care of your needs!
In Conclusion
We know owning your own business can be a stressful thing, and moving a business to a different state can be stressful for a small business owner. Let our attorneys and law experts at Dowd Law take care of all of your small business needs.