A sole proprietorship is the simplest and one of the most common forms of small business. It is one of the easiest ways to start up and operate a new business because of its lack of formalities. However, if you plan to relocate your sole proprietorship, it is important to notify customers in advance and proactively comply with regulatory matters to facilitate the transition.
Fit your business needs with the right LLC package
Notify customers and creditors of your plans to relocate. Do this well in advance of the actual move date to reduce the number of customers potentially lost to the process and put creditors at ease, who may have otherwise been unaware of your plans to move the business to another location.
Streamline regulatory matters prior to the move. Obtain any licenses or permits required at the new location before moving the business. Since some jurisdictions have reciprocity, check if any of your existing licenses or permits will automatically transfer to the new location. Also, if you plan on using a fictitious trade name or DBA in the new location, obtain approval prior to the move so you can hit the ground running.
Maintain tax compliance with the applicable tax authorities. Make any required final state and local tax payments prior to your move. Also, to be tax compliant at the new business location, be sure to register the sole proprietorship business with the local tax authorities, if applicable.