Moving a business across town can require a lot of time and effort, but moving your business out of state is a whole new ballgame. Each state has different regulations and standards for how a business should be run, not to mention the varying standards for business formations. With that in mind, if you plan to move your business out of state and into Florida, there are a few things that you need to understand first. At SimplyLegal, our dedicated and knowledgeable lawyers can help make your business’s transition an easy one and help ensure that you are in compliance with all of Florida’s business laws. Prior to your move, reach out to our law firm for advice on what you can do to prepare now, and what you will need to do when you get here.
You Are Essentially Starting Over
Moving a business to a new state is basically like starting a business from the ground up. Not only will you have to worry about advertising and marketing to your new audience, but also, you will need to think about taxes and business licenses and whether or not your business qualifies as an LLC/partnership/corporation/sole proprietorship in your new state as it did in your old.
In terms of taxes, you will need to finish out the fiscal year in your old state before beginning a new one in Florida. Oftentimes, this is as simple as checking “Final Return” on your state tax return. Federal taxes may not be so easy, however, and there may be several consequences depending on your business structure. This is something that a Miami business law attorney can educate you on prior to your move.
If your business is formed as a sole proprietor or partnership, the move should be fairly uneventful. Simply register your new business with the state of Florida using a Fictitious Name or commonly known as “Doing Business As (DBA)” registration process, and discontinue your business in your old state.
No matter what type of business formation you operate under, you will need to file for the correct business licenses and permits. If you choose to work from home, you will still need to obtain a home occupancy permit and a professional business license. For assistance with your particular business needs in terms of licensing and permits, please contact our office.
Moving an LLC
Here’s where things can become complicated. If your business is formed as an LLC, you have several available options for your company once you move. It is best to discuss these options with an attorney so that you fully understand the tax implications and other consequences associated with your choice. Your options include the following:
- Liquidate your old LLC and form an entirely new one in Florida.
- Continue operating as an LLC in your previous home state and register as a foreign entity in the state of Florida. However, going this route will require more paperwork on your part and more tax liabilities.
- Form an LLC in Florida and merge it with the old LLC in your previous state. Going this route will mean that you get to keep your old EIN and that you suffer no additional tax consequences, as the IRS will continue to view your company as the old LLC.
- Register as an entirely new LLC in Florida and have each member transfer his or her ownership percentage from the old LLC to the new LLC in Florida.
C and S Corporations
If you own a C or S corporation, your options will be very similar to those as an LLC’s. They include:
- Close the corporation in your former state and create a new one in Florida.
- Merge your former corporation with the new one in Florida, keep your old EIN, and suffer no additional tax consequences.
- Continue to operate your old corporation in your old state and register as a foreign entity in Florida.
Let SimplyLegal Help Make Your Move Easier
The Miami business law attorneys at SimplyLegal are here to make your life easier and your business transition smoother. If you want to move to The Sunshine State and continue business as usual, contact our team prior to your move for a complete rundown of what you need to do to suffer the least amount of consequences due to your move. Call our office at 305-858-6208 to schedule your complimentary consultation today.