Article Tags : moving your business . relocate your business . relocating a busines to another state . relocating your business
When you are starting your own business you probably may think that the state that you live in is where you will keep your business for the rest of its life. However, business are not permanent fixtures anymore. Many firms move from state to state in search of cheaper ways of operations and lower costs of resources, such as labor and material. If you find that you may have to move to another state for whatever the reasoning, consider the following steps before you make that leap.
Step 1 Determine your business structure
The first consideration is to figure out your business structure. For example, if you are a sole proprietor or partnership, then you will simply need to file your dba (doing business as) forms in the new state. However, if you are a corporation you may continue your incorporation in your former state and file as a foreign corporation in the new state while helping employees adjust. Many corporate attorneys argue, however, that you should merge (tax-free) the old corporation into the newly formed one in the new state.
Step 2 Ask about tax incentives
Every state has different tax incentives for businesses that conduct activity in the state. Visit your state business office or Secretary of State to find out what are the tax incentives for doing business as a foreign corporation in the new state. The tax incentives in your former state won’t apply anymore since you relocated.
Step 3 Keep customers informed
Never forget about the customers in your former state. Keep all customers in the loop about your new contact information. You should also keep your suppliers informed about your new whereabouts. The way they conduct business with you may also impact them and suppliers need time to adjust.
Step 4 Get papers organized
If you opt to merge the old corporation into the new one to enjoy the tax free status, be sure to file your paperwork correctly in the old state and in the new one. Visit 1800lawyers.com to find out the proper procedures for each state.
Step 5 Apply for a new EIN number
For C or S corporations and for LLCs you need to apply for a new EIN number in the new state yu are in while you dissolve or merge the old corporation into the new one.
Remember, merging an old corporation into a new one is tax-free. Please visit stepsto.com for more great business advice.