Description
Move Your Corporation to a Different State
L4SB will move your Corporation from its original state to a new (target) state.
This is a new, experimental service offering. Please be prepared for some trial-and-error — and even the states themselves can get confused about this. Rules are changing quickly, and our ability to do this depends on you, the status of your company, and whether the original and target states cooperate.
What’s Included:
- We’re a law firm. We are not anonymous, we maintain malpractice insurance, and we train our employees to maintain the confidentiality and anonymity of our clients.
- Availability of licensed business attorneys to answer your questions (for an additional fee)
- Attorney-client privilege and confidentiality
- Review by a licensed attorney
- We’ll provide simple edits to your Bylaws, to make it compatible with the Target State (or give you a template if you don’t already have one)
- If appropriate (i.e. for Asset Purchase and Foreign Corporation), we’ll give you an e-Book to help you with your transition
- Name availability verification
- Coordinated paperwork and filings in your original and target states
What’s NOT Included:
- This service does not include structural changes to your Corporation, such as adding or removing shareholders, changing your Board of Directors, or other substantive changes to your Corporation. We can help you, but such help is not covered under the flat-rate fee of this offering.
- This service does not include dealing with any tax issues, whether federal, state or local.
- This service does not include local business licensure, permitting, professional licensure or other license issues.
- This service does not include unforeseen expenses, including but not limited to bringing your Corporation into compliance in the original state, paying back taxes or fees owed to any state, resolving naming problems or conflicts, or new fees or changes in fee structures at any state.
Domestication
Domestication is where your Corporation literally moves from one state to another. This is only available when both states permit this (meaning, if only one state permits this, even the Target State, you cannot use Domestication). The Corporation remains the same, it’s just “domesticated” in a new state. It keeps its same FEIN. It keeps its credit, bank accounts, merchant accounts and everything. The process involves:
- We verify your Corporation is properly setup and in good-standing for the domestication, and we work with you and advise you as appropriate, if your Corporation needs work before the domestication.
- We submit a domestication request to your Original State (i.e. where your Corporation is currently domesticated).
- We submit the Plan of Domestication or Statement of Domestication, as appropriate, to the Target State.
- We form a new Corporation, if required, in those states where it is required.
- We update and revise your Bylaws, to make it compatible with your Target State. If you don’t have Bylaws, we’ll give you one.
- We’ll update any Buy/Sell Agreement and Shareholder Agreement, for an extra fee.
Merger
Merger is where your Corporation literally moves from one state to another, by merging into a new surviving Corporation and the old Corporation is dissolved. This has the same benefits as a domestication, but takes longer and is more expensive. You have a “new” Corporation, but it inherits all the attributes and traits of your old LCorporationC. It keeps its same FEIN. It keeps its credit, bank accounts, merchant accounts and everything. The process involves:
- We verify your Corporation is properly setup and in good-standing for the merger, and we work with you and advise you as appropriate, if your Corporation needs work before the merger.
- We form a new Corporation in the Target State.
- We update and revise your Bylaws, to make it compatible with your Target State. If you don’t have Bylaws, we’ll give you a new one.
- We submit the Plan of Merger to the Target State.
- We dissolve the old Corporation in the Original State.
Asset Purchase
Asset Purchase is where you literally sell all the assets of your old Corporation to a new Corporation located in a new state. You have a “new” Corporation, with the old assets, but it’s almost like starting over. You will need a new FEIN. You start over from a credit standpoint. Banks will require you to open a new account. Your merchant accounts and other vendor relationships will need to start over and you will need new accounts. The advantage to this, is the expense — it is much cheaper. The process involves:
- We form a new Corporation in the Target State.
- We update and revise your Bylaws, to make it compatible with your Target State. If you don’t have Bylaws, we’ll give you a template.
- We give you an “Asset Purchase Agreement” template, that you use to officially transfer the assets (note that you will need to revise and update this document, as appropriate for your unique circumstances and you will need to transfer the assets yourself to the new Corporation).
- We will give you a “Tips and Tricks for Transferring Assets in an Asset Purchase” e-Book to help guide you.
- We dissolve the old Corporation in the Original State.
Foreign Corporation
Foreign Corporation is when you keep your existing Corporation where it is, but you also register it in the Target State. The advantage is low-cost and speed, but the disadvantage is that you may have to submit taxes in two states. The process involves:
- We file a foreign Corporation in your Target State.
That’s it. Your existing company stays as it is. You are then officially “conducting and transacting business” in both your Original and Target states.
Registered Agent Services
A registered Agent is a person or company with a mailing address (not PO box) in the state your company is registered who can receive service of process and governmental notices on behalf of your company. This is not a physical address for your company. The Law 4 Small Business difference: You’re not alone — We review legal notices sent to your company, and will give you feedback / guide you, if requested.