How to Change Place of Incorporation
It's not uncommon for a corporation to relocate to another state after its formation. Popular reasons for corporate relocation include gaining favorable tax advantages, and decreasing the costs of doing business. During your corporate relocation you'll have many things to consider such as establishing property in your new location, transitioning personnel, and adjusting to a new environment. However, the most important decision you'll make is the manner in which you establish your business in your new state of operation.
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Instructions
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Changing Place of Incorporation
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Register your corporation as a foreign corporation in your new state of operation. This will allow you to continue to do business in your previous state. Be aware if you select this option you may be required to pay taxes in both states. In addition, you'll be responsible for paying annual fees in both states. Furthermore, you'll have to file a tax return in each state, even if you don't have income in your old state of incorporation.
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Dissolve the corporation in your previous state of operation. File Articles of Incorporation in your new state. You'll be required to pay any applicable fees to your state regulating agency. Depending on the state you relocate to, you may be required to declare the formation of your corporation in your new city's local publication.
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Reorganize your corporation. This occurs when you merge your previous corporation into your newly formed corporation. Your old corporation will eventually dissolve, which helps you avoid paying taxes and annual fees in two separate states. The costs and requirements to dissolve your corporation vary from state to state. In most instances, you'll be required to file a corporate dissolution with your former state.
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