A limited liability company can decide to operate in more than one state or to transfer totally to a new state. However, the LLC must officially register in the new state, according to the requirements of the state before going operational there. The procedure typically varies from state to state and the LLC would have to make its choice on how to go about the transfer process while putting its business goals into consideration. Now, let us look at the different transfer options;
1. Register your business as a foreign LLC in the new state- Transfer LLC
Moving your LLC to a new state makes it a foreign LLC in that state. Fortunately, it is allowed to do business in a new state even if you registered it in another state but you will have to officially register to do business as a foreign LLC by submitting a form to the state agency that is responsible for business filings. LLCs are therefore advised to register their business in a new state if they are moving temporarily, have plans to change states more than once or want to continue doing business in their old state.
Nevertheless, the LLC will have to maintain certain records including a permanent business address in the old state, Employer Identification Number (EIN) as well as its bank accounts. The LLC may also have to maintain a registered agent in both the old and the new state since they need to keep up with each state LLC filing and reporting requirements. In some states like California, you may have to pay an additional tax, notably franchise tax for registering your LLC to do business there.
2. Domesticate your LLC
You can also opt to make an LLC Transfer to another state in a process known as domestication but that will depend on whether the state allows it or not. The process of creating a domesticated limited liability company entails obtaining a certificate of good standing from your old state and filling it along with other documents such as the Articles of Domestication with either the secretary of state or the agency that is responsible for business filings in your new state. Domestication is indeed one of the easiest options for transferring an LLC to a new state because it allows the LLC to maintain things like bank accounts, tax ID numbers, and credit ratings.
3. Dissolve the old LLC and form a new one/ How to transfer LLC to another person
Another alternative is to simply dissolve an LLC and form a new one in the new state. There are primarily two ways to achieve this. You can either choose to merge the two businesses or liquidate the old LLC and let the member contribute their membership interests to the new company. Transferring your LLC can be complicated so it is imperative to seek advice from an attorney before following this path. This process is further complicated because forming a new LLC in the new state means you will also have to go through the hassles of getting a new tax ID number and creating new business accounts. Besides, you may also lose the benefit of good credit that your business has built over the years.
Use the Online Portal to Form an American Samoan LLC
Unlike other entity types, one of the perks of forming an American Samoan LLC is to enjoy a high degree of flexibility. Although LLC requires an extensive operating agreement, it is worthwhile for members of the limited liability company to reap short-term and long-term benefits.
What does mean LLC mean for your Business. If you want to get the full variability and flexibility of an LLC in American Samoa, use a dedicated portal to speed up and streamline the formation process of an LLC. In the end, most business owners are joyous to find out how much they saved their valuable time through the online portal. https://llc.as.gov
How start llc- From asset protection to confidentiality to security to privacy, start an American Samoan LLC to leverage liability protection and taxation benefits.