Moving your business is a major decision. It doesn’t matter if you’re a massive corporation or a one-person operation, changing location is a big deal. Of course, it’s going to cost money you to pick up and move somewhere else. It’ll likely be a challenge attracting a new customer base too. These are just the practical challenges to moving your business. There are also several legal obstacles that you need to consider before making the big move. Here’s how to legally move your business to a new state.

Decide How to Deal with Incorporation

The first step in relocating your company to a new state is determining how you want to incorporate. As you know, it’s necessary for businesses in the U.S. to register within a certain state. There are many types of business registrations. Limited Liability Company (LLC) and corporation are two of the more common options. Most small business owners will probably be working under an LLC umbrella. Here are the possibilities when moving to a new state:How Move Business New State

  • Register as a foreign LLC or corporation in new state: You can keep your LLC registered in your current state. However, you will still need to work with the new state in order to facilitate this. This can often be more trouble than it’s worth because you will have to file taxes and do paperwork for multiple state governments.


  • Liquidate and start fresh: This just means that you are completely reforming the company in the new state. While starting from scratch might sound like more work, it can actually be less strenuous. Especially when you factor in the financial costs of moving operations, rather than selling off your old company and starting anew with money in hand.


  • Form new LLC and transfer membership interest: To do this, individuals with equity interest transfer membership to a newly made LLC.


  • Form a new LLC or corporation and merge it with the old one.


Learn About Licensing and Permit Requirements

Once you’ve figured out the basic business registration needs, you’ll want to look into other permits and licenses. These vary based on industry or even locality. It’s critical that you do some research and learn how licensing and permit laws are different in your new state. It’s possible that there’s an entry threshold that makes it difficult for newcomers. Learning this before you move can save a lot of hassle.

Understand Business Insurance Laws

Workers’ compensation is one aspect of business insurance that varies by state. Familiarize yourself with these laws before you make any moves. It’s a great idea to use a business insurance calculator to compare quotes for different locations to make sure you’re getting the best package at the best price. This can lead to a major difference in overall expenditures.

How Will It Affect Taxes?

Taxes are something that can’t be overlooked when deciding to move your business. There’s a wide range in how much companies are required to pay in state taxes based on location and revenue. You will want to take a long, hard look at these numbers before you decide to move your business. This might not cause legal concerns beyond having to fill out new paperwork. However, a sharp increase in taxes can spell disaster for a company.

Talk to an Attorney

If you’re doing something major like moving your company to a new state, talk to an attorney. Find someone who specializes in this sort of business law and get their opinion. Yes, it will cost you a little bit of money. But it’ll save you in the long run if you can avoid any unexpected expenses, lawsuits, or fees.

Few people will tell you that moving your company is a walk in the park. By now, you should know that operating a business has its points of contention. Step up to the plate and consider the legalities of relocating before going through with it.