Moving your Company to Florida
Are you thinking about moving your company to Florida? It’s always had an appeal to both people and businesses alike. Lately, it’s become especially appealing to business owners from all over the united states–for several reasons, including that Florida has no personal income tax requirements for its residents and is very pro-business within its government.
We’ll be getting into the nitty-gritty of how to move to Florida from another state below.
Become a Foreign Entity
A “foreign entity” is a business that was established elsewhere and transferred some or all of its activities into Florida. To conduct business legally the owner must file a registration form with Florida’s Divisions of Corporations and file yearly reports while paying the yearly fee.
This is the quickest possible way to get a business up and running in the Sunshine state–maintaining continuity. This makes the most sense if the original owner plans on keeping its main base in the original state or if the owner plans on returning or willing it to another of that state’s residents. This is to keep this an active agent in Florida at all times.
Domesticating or Converting
Another option if you don’t plan on returning to your original state is domesticating (about corporations) or converting (about LLCs) your business into a Florida entity. Every state may have its terms, but there’s an established process in Florida for it.
Moving through this process is particularly nice as it lets you move your company to a Florida Entity all while you keep all of the original aspects of the company. Aspects like–its original EIN, property rights, and possibly the name. The name only needs to be changed if another Florida entity possesses it.
Merger vs Dissolving & Start Again
These two methods are similar as you will need to start a new company in Florida. Though, merging is a better option for companies in California and New York–where they don’t allow domestic businesses to convert or domesticate into foreign entities. You’ll then move the assets of the original entity into the new Florida entity, changing the state information.
Dissolving before you start again, is a more complicated and expensive method than the others listed. As with this method, you won’t be able to bring your previous information. If the above options don’t fit what you need, this will. There is some hassle that comes with this, needing a new tax ID number, new business accounts, and possibly wiping out your previous credit. Assets that can be transferred must be done by contract and may have tax repercussions and reporting obligations.
Trust us at Thompson Law for Moving your Company to Florida
Moving a business to a new state can cause worry and stress. It’s a lot more complicated than what one initially believes it to be. Our business experts are ready for you today.
If you are planning on moving into Florida, let our skilled legal team at Thompson Law help you with all of your legal needs so that you can focus on what matters–Your business and family!