Deciding to move your business to another state or country is an exciting process that can help you exponentially grow your company. Nowadays, globalization has made it easier than ever to become a well-known brand in a foreign market. There are many reasons to want to move your business to another state or abroad, which include searching for new opportunities, getting involved in a new market, and getting to know a new audience. Therefore, you must understand the many processes involved in relocating your business.
Moving a Business to Another State
1. Moving LLC or Corporations
There are different options available to you when you are moving your LLC or corporation to a new state. Among these, you can keep the current state in which the company is located as headquarters while you start to perform new business activities in a different state.
However, there are other solutions available to you such as dissolving the present company and forming a new one in the corresponding state. Likewise, you can do a reorganization, creating a new company in the new state and merging the old one into it. Alternatively, you can enter a process called domestication.
Domestication is one of the easiest ways to go around this; however, you need to make sure the state in question allows it. The first thing you need to do is get a certificate of good standing in the old state, which you will later file in the new state together with domestication forms. After this is done, you have to dissolve the business in the first state. This allows you for a smoother transition and you don’t have to stop your business activities.
2. Permanent Business Move
If you are doing a permanent business move then you must close the business in the state where your company was first registered. The same process is advised if you will be relocating the business to another country, in which case you could benefit from the services of an immigration lawyer in Las Vegas.
There are certain steps you’ll need to take to move the business permanently:
2.1 Reach an agreement
All partners and board members must agree to the relocation of the business. Without this, you might get involved in cumbersome legal processes that will make the business move close to impossible.
2.2 Contact the Secretary of State
You should contact the Secretary of State that services the state where the company is registered. Remember, rules change among states. You will need to search for the right form, which can be an article of dissolution or a certificate of termination. You also need to collect any reports and tax information as you will need to file this as well.
2.3 Settle Debts
The dissolution of the business means that all debts need to be paid and the assets distributed among the owners.
3. Temporary Business Move
Dissolving your company is not always the way to go. If you know you will only be moving temporarily or if you are planning on expanding your activities and continue doing business in the state where the company is registered, there is no need for dissolution.
What you can do in this case is request a foreign certification in the new state where you will be conducting business. As usual, you will need to find which are the exact requirements made by the state in question. However, three steps are usually requested wherever you are.
The first one requires you to introduce a Certificate of Authority form as well as pay local fees. Secondly, you’ll need to present the certificate of good standing from the state in which the business is originally registered. The last step is to provide numerous details about the company, from the names of any corporate officers to stock information.
Moving to Another Country
There are many reasons why you might want to move your business to another country. If you still haven’t thought about this, maybe one of these reasons will resonate with what you want for your company.
4. Market Research
If you are looking to expand your business or search for new opportunities, relocating and living abroad can be an excellent choice. You can find partners in the country in question that will help you understand the market and assess possible business opportunities.
However, performing market research on the ground is an invaluable experience that allows you to learn first-hand how your business can perform in this new market. It’s always important that you perform research before the move, of course. Once you arrive in the new country, you will probably need to perform several adjustments to adapt to the differences you will find.
There is a reason why outsourcing has become such a popular practice in the past decades. Labor costs can be considerably lower in other countries in which daily expenses are not as high as in the US. Similarly, the prices of the materials you need to create your products or offer your services can also be considerably cheaper. Therefore, you can make considerable changes to your budget that will allow you to grow and develop new products more cost-effectively.
6. Tax Benefits
Different countries have different tax regulations and your company might benefit from having part of its operations in countries with more lenient policies. Some companies choose to entirely relocate to these nations while others make changes to their profits system. Whatever you do, make sure everything follows the corresponding legislations and regulations.
Innovation can sometimes be hampered by too strict regulations. Countries with more relaxed regulations can be a great way to innovate in your business. This plus the changes in expenses can help you feel more comfortable with taking risks as you expand your services or products. In some cases, anti-competition laws can hinder the advance of a new company, making the move abroad more desirable.
There are many benefits to moving your company to a different state or a different country. Everything is going to come down to your final goal. If you want to expand your business, then there will be no need to dissolve the current company in the state in which it is registered. Finding new opportunities and taking new risks can be aided by moving your business abroad. Similarly, you might be able to cut certain costs and invest in more opportunities as a result. Whatever you do, make sure you have clear goals and that you learn what the regulations are in the state or country in question, and that you are entirely compliant. This will avoid many headaches and allow you to have an easier relocation process.