Being a small business owner has its benefits. Having the freedom and flexibility to do business where you choose fit is one them. Because of the many advantages business owners have, Nevada is one of the best locations to form a business entity. However, there may be extra research involved before moving to Nevada if you already have established a business elsewhere and are looking to move. Bearing this in mind, we at Kajioka & Associates, Attorneys at Law would like to further elaborate on how to move your business entity to Nevada.
Set Up Sole Proprietorship in Nevada
A rather simple move is a Sole Proprietorship or Partnership. With the County Clerk of each county where business is being conducted in Nevada, you need to register your business using a Fictitious Firm Name or “Doing Business As” (DBA).
Can I Move My LLC to a Different State?
LLCs, or Limited Liability Companies potentially have limited options, depending on the state you are coming from. For your relocation options, consult a business attorney in your current state or solicit a local one in Nevada. In regard to moving your business to Nevada, there are a few options listed below.
Foreign LLC Registration
You can continue your LLC in the original state when you register as a Foreign LLC in Nevada. If the entity is a multi-member LLC especially you can make the requirement for filing of multiple annual reports for taxes more complex. This option is recommended if you want to operate your business in both states or if you feel like you may move back eventually. However, this option is the most expensive option for a business owner.
Establishing a New Nevada LLC and Dissolving the Original LLC
Taking the route often doesn’t result in no tax consequences. There can be a potential taxable event however if there any debts and/or assets of the original entity that may need to be transferred. When you open up the Nevada LLC you will have to get a new tax ID number and establish a new business account and credit. Should your home state not allow LLCs to domesticate to another state, this may be the most optimal option.
Nevada Business Domestication
The states that will currently allow you to domicile out and domesticate in Nevada are:
– District of Columbia
– New Hampshire
– New Jersey
– South Carolina
– South Dakota
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There are a few states, like New York, that prevent you from domesticating in any state. Other states, such as Illinois, will help some entities domesticate in and out of their state with recently passed domestication laws. Domestication is the best solution if you intend to relocate permanently and the easiest way to get it done is by consulting a Nevada business attorney. There are similar processes for relocating corporations, but there are different tax consequences for corporations. Having a business attorney in Nevada take care of the corporate location is the best option where they can list the options and potential tax consequences. If you are looking to relocate your private business or corporation, call in the experts of Kajioka & Associates, Attorneys at Law and let our experienced attorneys help you with the process.