Running a business in a specific location entails a great deal of responsibility. Furthermore, relocating the company to a new state will necessarily involve a new round of work. In short, new plans and additional paperwork will almost certainly be required to make it happen.
Aside from that, decision-making is influenced by the factors affecting the business venture. It must assess and quantify the associated costs, determine the legal structure to be used, and plan for staff relocation.
This article will outline some considerations for entrepreneurs looking to start a business in a different state. The following are some topics that people interested in business should be aware of:
Business legal changes for relocations.
Changing the location of a business affects its legal status. Regarding this statement, any company must operate legally by registering with the state, so if there is an expansion and a proposal to relocate, another legal step is required.
Filing of documents
Planning to start a company in another jurisdiction, as in most cases involving limited liability companies, would probably require filing as a foreign LLC. The registration process is similar to forming an LLC, except for the cost and application form.
More so, look at the details in the table below for a better understanding:
Location: Georgia, United States
|Limited Liability Company||Article of Organization||$100 above|
|Foreign Limited Liability||Certificate of Authority for Foreign Limited Liability Company||$225 above|
Therefore, based on the table, the Georgia LLC cost is reasonable enough for entrepreneurs who want to establish or transfer the business in the state. The method for filing the documents can be done online or by mail.
Revision of Legal Documents
Due to the relocation, formation papers and other government documents, such as the operating agreement for LLCs, will need to be filed again with new materials. For more information, it is preferable to visit the Secretary of State’s website. Consultation with a legal counsel would also aid in the clarification of the records.
Choose the business location.
Entrepreneurs can choose between the old and new business locations. Transferring to another state entails being a foreign trader, which involves re-processing all of the original and necessary specifications. Furthermore, if they plan to keep the old location where the business is already running and well-known, they can save time and money while focusing solely on expanding the company.
To sum it up, when it comes to limited liability companies, businesses can opt to have both a domestic and a foreign LLC at the same time. The disadvantage is that having many LLC businesses with several members can be expensive, and anything written in the agreements and the management would need to be updated.
Furthermore, each state has its own set of business income taxes. If a multi-member LLC is placed in the new state, it is best to consult tax practitioners as soon as possible. Lastly, keep track of all costs incurred during the relocation to prevent unforeseen financial problems.