Moving Your LLC to Texas
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Ready to transfer your LLC to Texas? Call or e-mail our business attorneys at 972-248-8080 or info@wwrlegal.com.
Moving Your LLC to Texas
Texas is widely known for being a business-friendly state with several cities that offer a lower cost of living than other regions in the country. This has attracted numerous small and mid-sized businesses to relocate to Texas, especially considering the absence of state income tax. If you're considering moving your LLC to Texas, there are several ways to achieve this. In this article, we will explore some of the available options.
How to Move Your LLC to Texas
The best approach for moving an out-of-state LLC to Texas depends on your particular circumstances. For example, registering as a foreign entity could be an option for those who plan to temporarily relocate their LLC or for those who want to expand their LLC. To register as a foreign corporation in Texas, you will need to submit the required paperwork to the Texas Secretary of State, as per the 2005 Texas Code Business Corporation Act. This will enable you to continue conducting business in Texas while your LLC remains incorporated in its original state. To remain authorized to operate as a foreign entity in Texas, you will need to file an annual report, known as a "Public Information Report," in both your LLC's home state and in Texas.
Alternatively, you may choose to domesticate your out-of-state LLC by converting it to a Texas LLC. To accomplish this, you will need to create a "plan of conversion" that complies with the Texas Business Organization Code and file the necessary documents with the Texas Secretary of State. Domestication provides the advantage of enabling your LLC to continue its business without interruption, and LLC property will be automatically converted. However, outstanding obligations and liabilities that are outside of Texas will not be eliminated. Keep in mind that you will need to consider the cost of conversion, including registration and conversion fees, as well as any permits and licenses that may be required.
Forming a New LLC in Texas
Another option to consider is dissolving your out of state LLC and forming a new entity in Texas. If your home state does not allow for domestication, converting to a Texas LLC may not be feasible, making dissolution and formation of a new LLC in Texas the best option. To create a new Texas LLC, you will need to obtain a new tax ID and submit extensive documentation to the Texas Secretary of State. Keep in mind that starting fresh comes with the cost of paying the same start-up expenses again.
Dallas Business Attorneys
Wanting to move your LLC to Texas? The skilled attorneys at Wilson Whitaker Rynell can help make this happen.
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