It’s time for new challenges and life plans, so you’re considering moving to Colorado. Moving from the Golden Gate to the Centennial State will be such a change. From sunny California surrounded by beaches, your new home will be Colorado, surrounded by mountains and picturesque landscapes. Best moving companies Los Angeles have covered all segments of your move to Colorado, but the question remains: What to do next with your LLC? Procedures vary from state to state and depending on your job. You’ve come to the right place. In this guide, we’ll answer the question of the options available for moving your LLC to Colorado from California.
Moving your LLC to Colorado from California: There are four things you can do
When moving your corporate or LLC office to Colorado, you can choose one of the following options:
- Create a new LLC and link it to the old one
- Dissolve the old company and start afresh
- Register your company as a foreign LLC
- Domesticate an LLC in Colorado
Also, before choosing any of these options, consult an attorney in Colorado to see if you qualify in the new state. Three states allow the domestication of the LLC: California, Arizona, and Colorado.
A merger of the new and old LLC
If you have arranged the move in time and put it in the safe hands of commercial movers Los Angeles, you can focus on registering your company in the new territory. One option is to merge your LLC with a newly formed LLC in Colorado.
Since you are moving your LLC to Colorado from California, this option is available to you. Both states are on the list of states that support the merger process. After forming a new corporation or LLC in a new state, you can merge the old LLC with the new one. You will also need to comply with the legal framework and the provisions for merging the LLC. It involves filing certain documents in both California and Colorado. The result of merging the two companies is that the old LLC ceases to exist in the previous state and is transferred to the new company in Colorado.
Create a new LLC and liquidate the old one
If the prior LLC is not needed, the option is to dissolve the previous corporation and form a new one in Colorado. You will file your dissolution application in California and your organizational documents in Colorado. The legal framework for dissolution requires that you settle all debts and obligations, including taxes and state reports. An application is filed in the new state to create a new corporation or LLC. In addition, the assets and liabilities of the dissolved corporation are transferred to the new corporation by contract.
This procedure is both the most expensive and the most complex, so it is wise to seek the assistance of a local business attorney. If you choose this option, your new LLC will receive a new EIN (Employer Identification Number), license, and operating agreement to continue your business in Colorado.
Continue as a foreign LLC
When moving from California to Colorado to conduct business in another country, you can choose an option known as foreign registration. What does this mean? It means that foreign LLCs are registered in a state other than Colorado, and you can file with the Colorado Secretary of State. This procedure is known as foreign qualification and involves applying for authorization. It also includes a certificate of good standing from the state of incorporation and the payment of an application fee. In this way, the corporation or LLC can operate not only in one or more states but also in the original state of incorporation. If you opt for this type of business continuation in Colorado, you must comply with the obligations of the annual fee payment laws of the two states.
The domestication process
The process of changing the state of incorporation when moving an LLC is known as legal conversion or domestication. It is also one of the best options if your move is permanent. Among others, Colorado is on the list of states allowing the domestication process. To make it easier for you, we’re going to explain the steps you need to take to incorporate your LLC or corporation in Colorado :
- Prepare and file a combined statement containing the articles of organization/incorporation with the Colorado Secretary of State.
- It dissolves your entity in the home state and domesticates it.
The domestication process makes it easier for you to maintain your previous business relationships. It includes your bank accounts, credit rating, and tax identification number. A statutory business conversion is a single-entity transaction and does not involve the formation of a new LLC or transferring of liabilities, assets, or property. Your business will be located in one state, and you will not have to meet LLC requirements in two or more states.
Hire a professional moving company to make your move smooth and safe for your belongings. Get moving quotes Los Angeles and your movers will address all your moving concerns and help you get started with the preparations. These estimates will ensure that moving day goes off without any additional surprises.
Choose the option that is in the best interest of your LLC
Moving your LLC to Colorado from California is usually a straightforward process. Therefore, consider your options ahead of time and seek advice from your accountant, as well as an attorney. Different states have different personal and corporate income tax rates. An accountant and attorney can answer your tax questions and the implications of your move. And for a stress-free move that’s in your best interest, hire professionals like movers Orange County. Hands-on help and support are always welcome with our trained and certified team at your service.