Moving a Small Business to a New StatePosted By: herlihywp Comments: 0 Categories: Moving Tips
Moving a small business to a new state can be challenging. You have to move the furnishings to a new office physically, and you also have to establish your business in the new state legally. If possible, preparations for your move should begin about a year ahead.
Here are some additional tips.
Moving the Legal Entity to the New State
Moving a sole proprietorship or partnership to a new state is straightforward. In most cases, you simply register your business in the new state and discontinue it in the old one. In some cases, you’ll register with the state; in others, you’ll register with the clerk in the county where the business is located.
Moving LLCs and Corporations
Moving an LLC (limited liability company) is a little more complicated and may warrant help from an attorney who practices in your new state. Again, you have choices, and each option has specific legal and tax consequences.
- You can keep your LLC registration in your old state and operate as an out-of-state LLC in your new state.
- You can dissolve your LLC in your previous state and establish it in the new state.
- You can establish a new LLC in your new state. Instead of dissolving the LLC in your previous state, each member transfers ownership interest to the new LLC.
- You can register a new LLC in your new state and merge it with the old LLC.
Moving a corporation is similar to relocating an LLC and offers the same choices.
Regardless of the type of legal entity, you’ll need to apply for the appropriate licenses and permits in your new state. You’ll also need to prepare for a new tax environment.
Moving Physical Offices
A small business owner will consider various stakeholders when moving out of state.
Communicate with Stakeholders
The first significant stakeholder is employees. Some may not want to move and may need encouragement and financial assistance. Others may be unable to move. But, on the flip side, moving might reduce the staff of those who don’t produce.
The second major stakeholder group is customers. If your business requires you to be close to customers, moving will significantly impact. Sometimes small business owners move to another state to be closer to a major customer; however, be cautious. If that client goes out of business or moves elsewhere, the relocation is for nothing.
Be sure to communicate with your stakeholders about the move. Develop a communications plan for each group. Stress the positive aspects of the move and how it benefits that group.
Moving a business is different from moving a home. Choose an interstate commercial moving company with experience in moving operations similar to yours.
Obtain several estimates. Ensure the company has registered with the Federal Department of Transportation and bought insurance. Next, ask for references and call them. Finally, research the mover’s reputation online.
Plan your move so that it disrupts operations as little as possible. Remember that packing and moving IT equipment will take a significant amount of time, and you’ll likely need professionals to ensure the equipment is disconnected correctly and reconnected.
Contact us for help with your office move. We can help make your office move as stress-free as possible.