Can You Use An Llc Name That Is Registered In Another State

If you're relocating your business concern to another country, you'll likely want to annals there. Here's how to practise information technology.

Business name painted on side of building

When you accept an LLC organized in one state and has moved to another 1, you lot must register to do business concern in the new state. To avoid the hassle of dealing with two states, you may also want to transfer the business from the former country to the new i.

The procedure you'll follow depends on your business goals and united states of america y'all are moving out of and into. Here are the options and the reasons you might cull each.

i. Register to Do Business in Your New State

When you movement an LLC to another state, your business organisation is considered a "foreign LLC" in that country. It'southward perfectly acceptable to take an business that is formed in ane land and registered to practise business equally a strange LLC in one or more other states. In fact, corporations commonly select Delaware as their corporate home fifty-fifty if they only exercise business in other states.

You tin register a foreign business organization by submitting a form to the state bureau responsible for business filings.

Merely registering your business in your new country can work well if your move is temporary, if you anticipate changing states more than once, or if you recall you will go along to do concern in your old state. You'll exist able to keep the same employer identification number, bank accounts and permanent business address while still doing business in a new location.

But if your business organisation is organized in one country and registered to do business in another, you will need to maintain a registered amanuensis in each state and proceed upward with each state'due south LLC filing and reporting requirements. Y'all may as well have to pay additional taxes. For case, California imposes a franchise revenue enhancement on every corporation or LLC that is registered to do concern there.

2. Domesticate Your LLC

Your next pick is to formally transfer an LLC from one state to another. This procedure is known as domestication. If your state allows it, a domesticated LLC may be the easiest and best way to handle a business move. You lot create a domesticated LLC by obtaining a certificate of good standing from the old country and filing it, along with manufactures of domestication, with the secretarial assistant of country or other bureau in charge of business filings in your new state. You'll and then need to deliquesce the business organisation in the one-time state.

Not all states allow domestication, so you'll need to brand sure it is permitted by both the land you are moving out of and the state you are moving into.

Domesticating an LLC allows you to maintain your previous business organization relationships, including your depository financial institution accounts, revenue enhancement ID number and credit rating. You lot'll only be located in i state, so you lot won't accept to worry most meeting two states' LLC requirements. And the process is simpler than dissolving the old LLC and forming a new one.

iii. Grade a New LLC and Dissolve the Onetime 1

An alternative process involves forming an LLC in the new state and dissolving the LLC in the sometime state. There are a few dissimilar means to attain this. The 2 businesses may merge, the old LLC may be liquidated, or the members of the old LLC may contribute their membership interests to the new company. Because this process is more complicated than either of the other two options, it'due south a practiced idea to seek assist from an attorney.

Forming a new LLC can be inconvenient because you will have to get a new revenue enhancement ID number and establish new business concern accounts. You may also lose the benefit of good credit that your business has built over the years.

However, forming a new LLC might be your best choice if your state does not let domestication and you exercise not want to fence with operating a business that was formed in one state and registered to do business organization in another.

iv. Other Things to Consider

An LLC tin choose to be taxed as a corporation, partnership or sole proprietorship. The tax classification that was best for your LLC in your sometime country might not exist as advantageous in your new state because different states have different personal and corporate income tax rates. An accountant can suggest you on the tax consequences of your motility. You can change your tax status by filing Course 8832 with the Internal Revenue Service.

When yous move an LLC to another state, you may need to annals with land and local taxing regime. You may also need new business licenses, and you should update your address with anybody yous do business with.

Moving an LLC to a unlike state is often a simple process. Before you make the move, yet, you should consider your options and get an accountant's communication on the tax consequences of changing states.