Author Topic: S-Corp and moving out of state  (Read 265 times)

Gumption

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S-Corp and moving out of state
« on: July 27, 2017, 12:03:21 PM »
Anyone every move their business from one state to the next? Any tips?
This seems daunting. On the federal end, it looks like i can keep my business name and FEIN, but just let them know of new address.
Not sure yet about state.
Also is the headache of letting all my vendors know and reworking contracts to reflect new location.

SeattleCPA

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Re: S-Corp and moving out of state
« Reply #1 on: July 27, 2017, 01:37:06 PM »
You will need to register your S corp as a foreign corp in your new state. Just fyi...
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Gumption

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Re: S-Corp and moving out of state
« Reply #2 on: July 28, 2017, 10:23:53 AM »
do is getting a foreign qualification the easiest? My annual report costs me $10/yr..those are the only fees. As an scorp everything flows to me (stakeholder) to deal with on my personal return.

I guess i am wondering how that would work when i will no longer have a physical address in my old state.
I am wondering if dissolution/reorganization is the better route?
« Last Edit: July 28, 2017, 10:38:36 AM by Gumption »

protostache

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Re: S-Corp and moving out of state
« Reply #3 on: July 28, 2017, 12:57:48 PM »
States have various procedures for doing this. Sometimes you form a new corp in the new state and merge the old corp in, sometimes there's a more direct route called "domestication". It really depends on the state you're moving to and what options they have.

As for what to do if you don't have a physical location, this is what registered agent services are for. You buy their service for about $100/year and they'll give you an address you can list on the business registration. They'll receive and alert you to any process notifications or official mail that you get, but they don't act as a more general mail forwarding service.

An example of the easy route: Let's say you have a Michigan corporation and you're moving to Minnesota. Before you move you set up the registered agent service and change your official address with Michigan. Either before or after you move, you register as a foreign corporation in Minnesota and list your new address as the official business address. You can also get a registered agent in Minnesota if you'd like.

CareCPA

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Re: S-Corp and moving out of state
« Reply #4 on: July 28, 2017, 06:58:09 PM »
Don't forget updating your payroll registration to the new state (you are running payroll for yourself, right?).
Always happy to help with tax or accounting questions - feel free to private message me.

I am a licensed CPA in Pennsylvania. However, any tax advice I give should be considered general information and not used in the avoidance of tax. There is most likely information about your situation that I do not know, and thus you should do your own additional research.

Yes, in case it confuses you, I did change my forum name.