Domestication:
Change the State of Formation for Your Business
To legally change the state of formation for your business, you’ll need to process a business domestication or change of domicile. CorpNet can guide you through the process and take care of all the paperwork for you.
What is Business Domestication?
If you’ve decided to relocate your business to a new state and you want to keep the business duration or longevity, a domestication is generally recommended. When completed, your company will no longer exists in the original state where it was initially formed. It will only exist in the new state.
Not every state allows domestication and those that do have their own rules and process.
THe primary benefits of domestication include:
- You can keep your existing employee identification number (EIN), bank accounts, business licenses, and possibly the original formation date.
- You’ll have fewer tax consequences and paperwork.
- Your company will retain its credit history which gives investors, banks, and vendors more confidence in doing business with it.
- Your ongoing costs for annual reports and other state fees will be reduced because you won’t have to maintain your business in multiple states.
States That Support Domestication
- Alaska – Professional corporations
- Arizona – Corporations
- Arkansas – LLCs
- California – LLCs and corporations
- Colorado – LLCs and corporations
- Delaware – LLCs and corporations
- District of Columbia – LLCs and corporations
- Florida – LLCs and corporations
- Idaho – LLCs and corporations
- Illinois – LLCs and corporations
- Indiana – LLCs and corporations
- Kansas – LLCs and corporations
- Kentucky – LLCs and corporations
- Louisiana – LLCs and corporations
- Maine – LLCs and corporations
- Massachusetts – LLCs and corporations
- Minnesota – LLCs and corporations
- Mississippi – LLCs and corporations
- Nebraska – Insurance companies
- Nevada – LLCs and corporations
- New Hampshire – LLCs and corporations
- New Jersey – LLCs and corporations
- Ohio – LLCs and corporations
- Pennsylvania – LLCs and corporations
- South Carolina – Corporations
- South Dakota – LLCs and corporations
- Texas – LLCs and corporations
- Utah – LLCs and corporations
- Virginia – LLCs and corporations
- Washington – LLCs and corporations
- Wisconsin – LLCs and corporations
- Wyoming – LLCs and corporations
Steps to Domesticate an LLC or Corporation
While requirements vary from state to state, the Domestication process generally involves the following:
- Obtain member approval for the domestication of the LLC members or the Corporation’s board of directors.
- Validate all annual reports, taxes, and other compliance obligations are updated to date.
- Appoint a registered agent in your new state of formation.
- Apply for domestication in the new state, which may require you to file Articles of Domestication or a Certificate of Conversion.
- Once approved, you’ll submit paperwork to dissolve your business in the existing state. This may include Articles of Domestication, a Certificate of Surrender, or other dissolution documents.
- Update your operating agreement or corporate bylaws.
- Notify all business partners, vendors, and customers of the change.
States usually ask for the following documents when a business applies for domestication:
- Articles of Domestication
- Certificate of Good Standing (from original domicile state)
- A copy of soon-to-be-filed Articles of Dissolution (for charter state)
- A Certificate of Good Standing (from charter state)
How CorpNet Can Help
Each state has its own requirements, costs, and steps for processing a change of domicile. This can be overwhelming for the average business owner.
The CorpNet team has handled lots of business domestications for companies across the United States. We know the rules, what paperwork to process, and we can manage this for you, while also guiding you through the process.
Our domestication pricing starts at $399 plus state fees. Our team is on standby to provide you with a custom quote for costs and timing based on your original and destination state. And if you need an Express filing option, we can do that too.
