Many LLC owners prefer LLC Domestication over other methods of changing the LLC domicile. However, moving your LLC via LLC Domestication is more than filling out some paperwork. How? Let’s see how.
What is LLC Domestication
What is an LC domestication? It is the legal process of changing the LLC’s domicile. Practically, you move your LLC’s charter from one state to another through LLC domestication process after changing your state of residence.
In other words, LLC domestication allows your LLC to change the governing laws of your LLC. LLC domesticating allows you to maintain previous business contracts and employees.
Moreover, you do not need to change bank accounts, credit rating, and tax ID number (also known as EIN).
Since your business will only be located in one state after LLC domestication, you won’t have to worry about double filings and meeting the LLC requirements of both states.
Fun Fact: An LLC domestication is not the only way to move your LLC to another state. It is just one of the process of moving your LLC.
States that Allow LLC Domestication
Despite the popularity of LLC domestication for moving an LLC from one state to another, not all states allow domestication of an LLC.
Which state allows domesticating your LLC? There are many though. To date, only 37 states have enacted laws authorizing business domestication, including LLCs, corporations, and other legal entities, into their jurisdiction.
The states that allow LLC domestication are listed below.
Click on the state below where you want to file the Article of Domestication and follow the state-specific process.
District of Columbia
How to Move (Domesticate) an LLC from One State to Another
Domesticating or Moving you LLC from one state to another is an easy task. It is not difficult as long as you follow a proper procedure. LLC demostication instructions are simple. You can do it yourself or hire a reliable LLC domestication service.
Each state has specific guidelines for LLC domestication in its jurisdiction. However, the following steps of moving an LLC are common in every state. Kindly follow these steps carefully to successfully domesticate your LLC.
Acquire a Certificate of Good Standing
A certificate of good standing is a legal document issued by the state.
LLC domestication requires that your LLC does not have any outstanding debts or taxes in the home state. So you have to pay state taxes, LLC annual fees, and other fees in the state where you originally registered your LLC.
To prove that your LLC is up to date on all important business marks, you need to submit a certificate of good standing while filing Articles of Domestication. You can learn more on how to get a certificate of good standing in all 50 states to get a certificate of good standing in your specific state.
Complete the Articles of Dissolution Form
Articles of Dissolution are the legal documents you file with the state to dissolve your LLC formally.
On this step, you just need to download the LLC dissolution form and complete it with the correct information.
Important Note: Do not file articles of dissolution in the LLC’s home state prior to getting domestication approval from the state where you want to move your LLC.
Once the state of your new residence approves your LLC domestication, you are required to submit this LLC dissolution or LLC termination form with the state and wind up your LLC in that state.
File Articles of Continuance or Articles of Domestication
To formally move your LLC from the LLC’s home state to the state of your new residence, you need to file articles of domestication, aka articles of continuance.
You need to submit the certificate of good standing and a copy of the articles of termination/dissolution form with articles of domestication.
After filing Articles of Domestication, you can change your LLC’s domicile or location. To file articles of domestication click on the respective state.
Select a State
Wait for an Approval
Once you file articles of domestication with the state of your new residence, you have to wait for the approval.
Most states take two weeks on average to process your document and verify that your LLC does not have any outstanding debts, taxes, or other state obligations in its home state.
File Articles of Dissolution in the Previous State
Once you get the permission for domestication in the state of the new residence, you need to file articles of dissolution in the previous state.
This is how you will have your LLC transferred from the previous state of LLC registration to the state of the new residence.
What to do After Moving Your LLC?
Once you move your business to the state of your new residence, you need to comply with the rules of your new domicile state. Make sure you:
- Do not have any outstanding LLC federal taxes or debts in the previous state.
- Keep your registered agent information up to date.
- Follow your LLC operating agreement.
- Acquire licenses and permits specifically required by the new state.
- Regularly submit annual reports and fee.
- Pay franchise or state taxes if applicable.
FAQs on How to Domesticate an LLC
What is the difference between continuation and domestication?
Domestication and continuation are often considered the same. But in many states, they are considered two different processes.
In LLC domestication, only out-of-state businesses can domesticate in a particular state.
On the contrary, LLC continuation is a process that allows out-of-country or out-of-state businesses to relocate to a particular state.
How can you move an LLC to another state?
There are 4 different ways to move a business from one state to another. Below are listed the ways through which you can move your LLC to a different state:
- LLC domestication
- Forming a New LLC and Merging it into the Old LLC
- Operating the LLC as Foreign LLC
- Dissolving the Old LLC and Forming a New LLC
Can you move your LLC to Florida?
Yes, you can move your LLC in or out of Florida anytime. The state of Florida allows you to domesticate your LLC by filing articles of domestication with the Florida secretary of state.
Which states allow LLC domestication?
Though you can move your LLC from one state to another anytime, LLC domestication is allowed only by a limited state. Here is the list of states that allow LLC domestication.
Can I move my LLC to Texas using LLC domestication?
Yes, you can move your LLC in or out of Texas anytime. The state of Texas allows you to domesticate your LLC by filing articles of domestication with the Texas secretary of state. However, in Texas, you must be aware of the tax effect of LLC domestication.
You must pay Texas franchise taxes and pay the outstanding franchise taxes to the previous state.
To satisfy this requirement, you need to obtain a certificate of franchise account status from the Texas Comptroller.
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