Can an LLC Transfer to Another State?

By Brette Sember, J.D.

Can an LLC Transfer to Another State?

By Brette Sember, J.D.

A limited liability company (LLC) is a convenient way to structure your business, as it offers lots of flexibility and benefits. When you set up your LLC, you will do so in one state, but it's possible to move your LLC to another state should you need to.

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Reasons to Move Your LLC

When you set up your LLC, you do so with the intention of doing business primarily within one state. But things change. Your business might grow, you personally might decide to move, or you may find that the climate is just better in another state for your type of business. Fortunately, you can move your LLC to another state should you need to.

Options for Moving Your LLC

There are a couple of options available for legally moving your LLC. You could dissolve it in the existing state and start a new LLC in the new state. The problem with this is that you'll have to change every contract you currently have to reflect the new name and information. You'll also have to start over with your company's credit history. Your LLC will essentially be a new company once you form it in the new state.

The other option is to domesticate your LLC in the new state. Basically, this means you're simply moving it over to the new state without any other changes. The LLC can maintain its age and credit history as well as keep all of its existing contracts as is.

Domestication

When you move an LLC from one state to another, you need to go through a process called domestication. Each state has its own rules and forms, but the general process involves filing a document called Articles of Domestication with the new state's registration agency. You'll be required to create a plan of domestication, which includes:

  • Any changes you're making to your Articles of Organization
  • The change in jurisdiction
  • Details on how the ownership interests in the existing LLC will be converted to ownership interests in the new LLC

How to File Articles of Domestication

The Articles of Domestication should be filed with the state registration agency, which is often part of the state's Department of State. You should obtain the form and fill out all of the sections. Form differ by state, but most ask for:

  • The name of the existing LLC
  • The jurisdiction of the existing LLC
  • The registered agent for the existing LLC

You could also be required to file a new Articles of Organization and provide a certificate of good standing from the previous state your LLC was located in. You'll need to pay a filing fee, which can range from $30 to $150.

Other Steps

After you file your Articles of Domestication in the new state, you need to take a few more steps to wrap up business in the old state and get started in the new state. Your LLC will need to:

  • Register as a foreign LLC in the old state, if it will continue to do business there
  • Register in the new state with the state tax collection agency and pay sales tax if it is providing services or retail sales
  • File Form 8832, Entity Classification Election, with the IRS and state that your LLC has been domesticated

Once these steps have been accomplished, your LLC is finally settled in its new home and ready to continue doing business.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not LegalZoom, and have not been evaluated by LegalZoom for accuracy, completeness, or changes in the law.