Many entrepreneurs choose a limited liability company (LLC) to launch, manage, and grow their small businesses. And because of an LLC’s flexible nature, it’s an excellent choice.
That flexibility extends to moving your LLC to another state, whether to be closer to family, to benefit from lower living and business costs, or to take on a new challenge and expand your business.
Whatever your reason for moving, you must decide how you’ll move your LLC, and you have several options to choose from. Some are easier, some harder, and others depend on your reason for moving. This guide, part of our section on maintaining your LLC, explains each one and how to get it done.
Options to move an LLC to another state
When you change states, you have 4 options for taking your LLC with you.
- Keep your LLC and register it as a foreign LLC in the new state
- Move your LLC from one state to the other through domestication or conversion
- Dissolve your LLC and start a new one
- Merge your existing LLC into a new LLC
| Option | Best for | What happens in the old state | EIN and history |
|---|---|---|---|
| Register as a foreign LLC | Expanding, or keeping ties to the old state | The LLC stays domestic there; you keep paying its fees | Same LLC, same EIN |
| Domestication or conversion | Moving for good, when both states allow it | The LLC leaves that state’s records | Usually the same EIN and history |
| Dissolve and re-form | Moving for good when domestication isn’t allowed | The old LLC is dissolved | New LLC, new EIN, new contracts and accounts |
| Merger | More complex businesses, or when other options don’t fit | The old LLC merges into the new one and ends | The surviving LLC keeps its own EIN |
Summary of steps to move an LLC to another state
- Register as a foreign LLC
- Get a certificate of good standing from your original state
- File the foreign registration (often called an application for a certificate of authority) in the new state
- Pay the foreign registration fee and register with the new state’s tax agency
- Domesticate or convert
- Verify both states allow it
- Create and approve a plan of domestication or conversion with the members
- Get a certificate of good standing from the original state
- File the outbound form in the original state and the domestication or conversion filing in the new state
- Dissolve and re-form
- Vote to dissolve and settle all debts per your operating agreement
- File articles of dissolution and wind up the business
- Form a new LLC in the destination state by filing its articles of organization
- Merge into a new LLC
- Form the new LLC and draft a written merger plan between both LLCs
- Get the members of both LLCs to approve it
- File articles of merger in the states that require it
1. Register it as a foreign LLC
For many business owners, the easiest option is to register the LLC as a foreign LLC in the new location. This option comes with a bonus: if you’re not moving home, you can live in your original state and run your LLC in another.
What is a foreign LLC?
A foreign LLC is an LLC registered to do business in a state other than the one it was formed in. States require businesses to register as a foreign LLC when doing business there so they meet that state’s regulatory and tax requirements. The domestic LLC vs. foreign LLC guide explains when you need to register.
For example, if you formed a California LLC and want to expand to Oregon, you could register as a foreign LLC in Oregon.
How to register as a foreign LLC
- Get a recent certificate of good standing (sometimes called a certificate of existence) from your original state
- Appoint a registered agent with a physical address in the new state
- Fill out the new state’s foreign registration form, often called an application for a certificate of authority
- Check your application’s accuracy and file it with the new state’s Secretary of State’s office
- Pay the foreign LLC registration fee from your business account
- Register your LLC with your new state’s tax agency
Things to consider when registering as a foreign LLC
When you register as a foreign LLC, you’re active in 2 states, which means paying fees and filing reports in both.
That’s fine when doing business in both states. But if you’re only earning in your new one, it can be costly, as some states charge a minimum annual tax ($800 in California, reduced to $400 for an LLC’s first taxable year from 2027 to 2029) plus other costs, including yearly accounting fees.
If your original state’s annual fees make it too expensive to keep 2 registrations, consider the other options below.
2. Move the LLC from one state to another
Business owners who are switching states for good can move their LLC to a new state through domestication, which some states call conversion or transfer. It only works if both the old state and the new state allow it, but if they do, it’s often the cleanest option.
LLC domestication
LLC domestication lets you move your LLC from one state to another and run your business as if it were formed in the new state. The LLC keeps its history, contracts, and usually its EIN. Once the move is complete, the laws and fees of your original state no longer apply and your new state governs your business.
How to domesticate your LLC
The domestication process varies from state to state, so check both Secretary of State offices for their forms. You’ll usually need to take these steps.
- Draft your plan of domestication or conversion
- Get approval from the members, usually all of them unless your operating agreement says otherwise
- Get a certificate of good standing from your original state
- File the outbound filing in your original state, such as a statement or certificate of domestication or conversion
- File the articles or certificate of domestication or conversion in the new state, along with any formation details it requires
Most states now have some form of interstate domestication or conversion for LLCs, but not all of them, and the names and forms differ. If either state doesn’t allow it, your next option is to dissolve your LLC and create a new one, or use a merger.
3. Dissolve your LLC and create a new one
Few business owners want to dissolve a successful LLC. Still, it’s an alternative option when domestication isn’t possible and a foreign registration doesn’t make sense.
Dissolving your original LLC and creating a new one requires more work, but it gives you a clean start. It can be a positive thing for some business owners switching states for good. Keep in mind that the new LLC is a new business: it needs a new EIN, and contracts, bank accounts, and licenses have to move over.
How to dissolve an LLC and open a new one
As with most LLC rules, LLC dissolution rules vary from state to state and with how you’ve structured your business. Because of this, your first step is to review your operating agreement, which usually contains the rules for dissolving your LLC.
For multi-member LLCs, the members usually need to approve the dissolution, often unanimously. For all LLC types, make sure you know and follow your current state’s dissolution rules and requirements.
In most states, dissolving your current LLC involves these steps.
- Stop doing new business
- Pay off all business debts
- Distribute all remaining assets to the members (owners)
- File your dissolution paperwork and any final tax returns with your state
The original LLC members can then form a new LLC in the new state.
4. Merge your LLC with a new one
Most states allow you to merge one LLC into another, including across state lines. While this option suits more advanced businesses, it can help if the other 3 options don’t suit your needs.
How to merge LLCs
Rules about merging vary from state to state, and you’ll need to follow the rules of both states. That typically means these steps.
- Form the new LLC in the new state
- Draw up your written merger plan
- Have the members of both LLCs approve the merger
- File articles or a certificate of merger with the Secretary of State in the states that require it
What happens next?
Once the merger takes effect, your old LLC ends and merges into the new one. All property of your old LLC belongs to the new LLC, which also takes on its debts and liabilities.
Mergers between LLCs taxed as partnerships have their own federal tax rules, so ask a CPA how a merger affects your tax filings and EIN before you file.
After the move
Whichever option you choose, update your bank, licenses, insurance, and the IRS with your new address, and calendar the new state’s annual report and fee deadlines. Our guide on keeping your LLC in good standing covers the ongoing requirements.
Choosing the right way to move
The LLC structure exists to enable entrepreneurs like you to start a business without the fuss of a corporation while benefiting from the limited liability it offers. That ease of use continues when moving your LLC to another state.
Together they make the LLC structure an attractive option for many small business owners looking to start, grow, and expand their business.
FAQ
Yes. You can register it as a foreign LLC in the new state, domesticate or convert it if both states allow it, dissolve it and form a new LLC, or merge it into a new LLC.
Domestication moves an existing LLC to a new state so it becomes a domestic LLC there and leaves the old state. The LLC usually keeps its history, contracts and EIN.
Not if you register as a foreign LLC, and usually not after a domestication. Dissolving and forming a new LLC creates a new business, which needs its own EIN.
A foreign registration is often quicker, but you keep paying fees in both states every year. If you’re leaving the old state for good, domestication usually costs less over time.
Yes. Whether you register as a foreign LLC or domesticate, you need a registered agent with a physical address in the new state.