Moving your business to another state is always a big step. It’s always good to try and use other opportunities that will allow your business to thrive. However, residential moving is already complicated enough. While at it, if you figure that you need are looking for some moving and storage NJ, check it out. But what’s the situation like with commercial moving? People are usually confused as to where they should start. Stick with this text to find out.
Guide to moving your business to another state
Find out more about the following aspects of moving your business:
- Temporary business moves
- Permanently moving your business to another state
- Corporations and LLCs
- Sole Proprietorship and Partnerships
Sole proprietorship and Partnerships
Out of all the ways you can move a business, this one should by far the easiest one. Sole proprietorships or partnerships can move to a state without any complicated procedure. This means that you will be able to move in the same way that you set it up, provided that you pack the old business in an organized fashion. Remember, sole proprietorships are not required to register with the state. However, you will first need to cancel your old business licenses and permits. Next, you will have to apply for the same ones in the new state you choose to operate in. Furthermore, any outstanding employment taxes, sales, or fees need to be paid before you decide to move your business to another state. If you took an assumed name for your partnership/sole proprietorship or perhaps a “doing business as” (DBA) status, see below.
Withdraw the name from the office of your Secretary of State and apply for DBA status in the new state. More or less the same goes for your bank account. Your need to close your old local one and open a new one in the new state. Next, inform the IRS that your business move had taken place. Speaking of which, if you need any office movers NJ to move your office items, have a look. Coming back to the IRS, it’s important to do so because the Service will have updated information. This means that your Federal Tax ID number or Federal employment identification number is updated with the correct details. In case you decide that moving your business mid-year is your thing, the procedure is a bit different. You’ll have to turn in tax returns for both states your business was located in.
Moving as a corporation or LLC
You already know that corporations and LLC must be registered with the state in order to legally operate. Now, from this point onwards, there are two pathways you can take. The first one is that you can dissolve your corporation which operated in the former state. Subsequently, you can just open a new one in your new state of residence. Alternatively, you can file a foreign qualification in your new state. Please note that the pathway which you choose depends on whether you’re moving your business to a new state permanently or temporarily. The decision about whether you will continue to operate your business in your old state and expand it to another is also important. Moving a corporation will surely require long distance movers NJ, so please consider the options.
Permanently moving your business to a new state
The following steps apply only in the case of permanently moving your business to a new state. Firstly, it is essential that you lose your business in the first state. Next, you must register a new LLC or corporation in the second state. Specifics and requirements differ from state to state. However, here are some general steps that you can follow. First of all, all board members of the company must agree to close the company and move. You should record the agreement within the meeting minutes. Secondly, you need to file a “Certificate of Termination/Dissolution” with the corporation’s current Secretary of State there. These certificates will enable you to permanently cancel your business entity there. However, before doing so, you must file of all remaining taxes, fees and reports. Thirdly, you need to pay all outstanding debt.
In addition, since you are moving your business to a new state, there are a few tricks. For example, if the LLC chooses to pass file taxes as a partnership, it will not have to pay business asset taxes. However, members will have to pay income tax on the assets that they distributed. You will surely have many valuable things to transport and will certainly need a form of moving insurance. Please check the specific conditions with your Secretary of State’s office, as regulations differ. Finally, you register your company again in the state, closely following all necessary regulations.
Moving your business to another state temporarily
All this talk of moving business to another state is closely tied in with taxes. Therefore, here’s a list of the top 10 tax-friendly US states. Coming back to the topic, it all depends on what you really want. Honestly, if you still want to maintain the business in your old state, don’t close your business. In such a case, filing a foreign qualification in your new case, whilst keeping your old business, seems best. If you’re wondering how you can complete a foreign qualification procedure, this is how: In the beginning, you’ll need to complete a Certificate of Authority application.
You should submit this form, as well as the fees to the office of the Secretary of State. Sometimes, the administration might ask you to demonstrate that your business is in good shape in its original state. Finally, get your company and business details ready for inspection. This also includes stock information, as well as the primary location you’ll be using in your new state and your registered agent. You’ll need to recruit one if you wish your federal and state correspondence, as well as to handle tax notices and corporate filing. This is the procedure of moving your business to another state and, hopefully, this guide will be of use to you.