There are many corporations and LLCs with only one or two owners. When the owners move their residences to another state (even if it is a neighboring state), should the business also move? For example, if you organized your company as a New Jersey LLC while you were a resident of New Jersey, should you change your company to a Pennsylvania LLC when you move to Pennsylvania?
The answer depends on your specific circumstances. By not packing up your LLC or corporation and moving it with you to your new state of residence, you may double your business organizational expenses without producing any corresponding business benefit:
Leaving your business behind means you must maintain a resident agent in your former state of residence. If you use a home or office address as the resident agent address and that home or office address will no longer be available to you after your move, you will need to pay for a resident agent service. Resident agent services start at $100 to $200 per year.
Even if you leave your business organized under the laws of your former state of residence, you may still be required to register your business in your new state if your business is deemed “to be transacting business” in your new state. In this case, you would be required to register your business as a foreign LLC or foreign corporation. See my blog posting “In Which States Are You Transacting Business?”
In Part Two of this blog series, I’ll discuss the process of moving your company from one state to another.