September 18, 2020

A Guide to Moving a Business to Another State

Every year, 38 million change of address forms go through the USPS.

These forms must be filled out every time you move, and they’re required for businesses, too. But moving a company to another state requires more than just a change of address form.

Beyond the potential costs, there are legal and tax considerations whenever businesses move from one state to another. And these considerations are not nice-to-haves — they are necessary to the process.

Keep reading for the most important things you need to know when moving your business to another state.

Costs of Moving a Business to Another State

The costs of moving a business to another state vary. You’ll need to consider the time of year, whether you’re going to use a moving company if you’re moving long-distance, and what you are bringing with you. Of course, the further you move, the more expensive your costs will be.

And those are just the upfront costs of moving. There are also some unanticipated costs of moving that are less obvious, such as paying for employees to relocate or the costs of hiring and training new staff.

The Legal Side of Moving a Business to Another State

The legal implications of moving a business to another state will depend on the type of business you own.

If you’re moving an LLC or corporation, then you have three options: 

  1. Keep your LLC/corporation open in the old state and do business in the new state as a registered foreign corporation/LLC.
  2. Open a new LLC/corporation in the new state and dissolve/liquidate the original corporation/LLC in the old state.
  3. Merge the old LLC/corporation into a new corporation in the new state through a reorganization.

If you’re moving a sole proprietorship, it’s a lot simpler. All you have to do is move to the new state and register your business in the same way you did in the old state.

Notify the Right Parties of Your Move

There might be many federal, state, and local agencies that your business must work with. You’ll need to notify all of them that you’re moving your business to a new location.

Make sure that you fill out that change of address form for both the USPS and the IRS. You’ll also need to contact the taxing authority in your state to stop your taxes. Finally, contact the business division where your business is registered and inform them of your move.

Collect Tax Deductions

When you’re moving a business from one state to another, any of the costs that you incur are tax-deductible. You can deduct the cost of moving office equipment, computers, inventory, and more. You might also be able to claim your own personal moving expenses, depending on whether they meet IRS requirements.

Need Help Moving Your Company to a New Location?

Moving a business to another state doesn’t have to be complicated if you prepare in advance. Make sure to oblige the legal and tax responsibilities, and your move should be a smooth process.

And now that you know how to move your business to a new location, you can start looking for the people to get you there. Contact us to find out more about our moving services.


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