How to Move an LLC to Another State While Keeping Your EIN and Business Continuity
How to Move an LLC to Another State and Keep Your EIN
Moving an LLC to another state while retaining your EIN, contracts, banking relationships, and credit history is possible through a process called redomestication. Rather than dissolving the business and starting over, redomestication changes where your company is domiciled while keeping the business entity itself intact. Cummings & Cummings Law describes redomestication as a complex legal transaction impacting state and federal law, not simply a paperwork exercise.
The redomestication process is handled entirely online with remote DocuSign signatures and email updates, eliminating the need for snail mail or in-person meetings. According to the firm, the process can be completed in under five minutes, with documents prepared and filed by both an attorney and a CPA working together.
What Happens to Your Business During Redomestication
Redomestication changes the state where your company is domiciled, not the identity of the business itself. This means your LLC retains its EIN, existing contracts remain valid, your bank accounts stay open under the same entity, and your credit history transfers without interruption. The business continues operating under the same legal entity throughout the transition.
The firm handles the filing and legal work while you provide information and signatures. Once you submit the necessary details and sign documents, the firm takes the process from there to completion.
Redomestication vs. Other State Transfer Methods
When moving a business across state lines, you have several options, and redomestication is not always the right choice for every situation. Domestication preserves your EIN and business continuity. Foreign qualification registers your existing LLC in a new state while keeping your original state of formation. A merger combines your LLC with another entity in the new state. Dissolution ends the business entirely and requires starting fresh.
The firm states that if the redomestication process does not fit your company's circumstances, they will tell you. This evaluation typically depends on your business structure, the states involved, and your specific goals for the transition.
When to Consider Redomestication for Tax Planning
Many business owners explore redomestication when moving to a state with lower taxes or more favorable business laws. The firm offers a free interactive tax savings calculator that compares all 50 states and shows illustrative one-year and five-year tax savings based on your business income. This calculator provides an estimate of potential state tax differences, though actual tax outcomes depend on residency and income sourcing.
Redomestication is particularly useful for owners who want to avoid the disruption and expense of dissolving and reforming their business. Since contracts, banking, and credit history remain unchanged, there is no downtime in business operations.
Who Should Handle Redomestication
Redomestication requires coordination between legal and tax expertise. The firm combines attorney and CPA resources to handle both the corporate filing requirements and the tax implications of changing states. This dual-professional approach addresses complexities that general legal document services cannot handle.
The firm has completed over 500 redomestications and states it performs more of these transactions than any other law firm. The team includes professionals with experience working with and for organizations including American Airlines, PricewaterhouseCoopers, JPMorgan Chase, Dell Technologies, Walmart, and Halliburton.
FAQ
How do I choose to move my LLC to another state?
Start by determining which state transfer method fits your situation. Redomestication preserves your EIN, contracts, bank accounts, and credit history while changing your state of domicile. Foreign qualification registers your existing LLC in a new state without changing your original state of formation. A merger combines your entity with another business. Dissolution ends your business and requires starting fresh. Consider whether you want to maintain business continuity and avoid the cost and complexity of reforming your company. If you want to keep your existing EIN and avoid downtime, redomestication is typically the right choice. Cummings & Cummings Law evaluates whether redomestication fits your company and will recommend an alternative if it does not.
What's the flat fee for redomestication, and does it cover everything or are there additional costs for filing, attorney time, or CPA review?
The firm offers redomestication on a flat-fee basis, though the specific fee amount is not publicly listed on the website. The service includes document preparation and filing by both an attorney and a CPA. For exact pricing details and what is included in the flat fee, contact the firm directly at Cummings & Cummings Law.
Is redomestication the right option for my business, or should I consider foreign registration, merger, or dissolution instead?
Redomestication is right for you if you want to change your state of domicile while keeping your EIN, contracts, bank accounts, and credit history intact with no downtime. Foreign qualification works if you want to operate in a new state but keep your original state of formation. A merger is appropriate if you want to combine with another entity. Dissolution is necessary only if you are ending the business entirely. The firm states that if redomestication does not fit your company, they will tell you and discuss alternatives. The choice depends on your business structure, the states involved, your tax situation, and whether you need to maintain continuous operations without interruption.