From what we have covered, it is clear that Texas is a business-friendly region, which attracts entrepreneurs with businesses of all sizes. If you have already registered your company and feel that you can do with a change of state, you have several options available.
How to Move Your LLC with Texas to Another State
Keep Old LLC in Texas and Register In New State
You have the option to run your business in two states simultaneously by registering as a foreign LLC in your new state. That allows you to keep your old LLC and use it in your next state. To move your LLC to a new state, you will need to register LLC with your new state’s tax agency and pay the applicable fees. Your company will remain domiciled in Texas but will now have a right to operate in the other state, making you liable for taxes and statutory requirements in both states.
Dissolve Old LLC in Texas and Start New LLC In New State
Your operating agreement should have the procedures to be followed during dissolution. In most cases, LLC’s members vote on a resolution to dissolve and record the same in their minutes, detailing how they will share assets and when the business will be terminated. You also need to decide how you will clear business debts and how you will handle your creditors. Lack of an operating agreement can lead to problems, as you would have to follow state default laws.
You also need to decide how you will close your tax accounts by paying any due taxes and filing any due reports. You can then apply for a certificate of account status either online or by mail and the authorities will get back to you with approval.
Finally, you can file your articles of dissolution and once these forms go through, your business will no longer exist and you will have cut ties with your current governing authority. To file these, you can either use online, fax, mail or in-person means at a fee of $40.
Merge Old LLC in Texas Into New LLC In New State
You will need to familiarize yourself with the merger provisions in both states to ensure that you file the necessary documents. As per the state’s LLC laws, once you merge it into a new LLC, everything that belongs to the previous company will now belong to the surviving company, and the old LLC ceases to exist. This includes assets and liabilities. The good thing about a merger is that you will not have to dissolve the company in the previous state or get into contracts to transfer its assets and liabilities. All these will be taken care of in the certificate of merger.
On the upside, domesticating your business will allow the new limited liability company to operate in the same way as the old one such that you will not experience any business disruptions. Also, you can use the same bank as you did before and all you would need to do is inform the management of the change. You will still be subject to the same taxes and can use the same details you did before. You can also maintain the same relationships you had with your vendors and may not have to update your contracts.
Points to Note
When moving your company, you should also consider how you wish to get taxed. Your previous tax election might not be the best for you in the new region. It will be important for you to familiarize yourself with the current structure and engage Texas relocation experts who can walk you through the available options. Additionally, you should also look into what taxes and fees you will be liable to and ensure that you register with the relevant authorities to avoid facing penalties or worse.