Moving Your Corporation to Another State – Where to and How to!

WHERE TO:

CareerBuilder and EMSI have created a new, interactive map that helps you see which metropolitan areas have the growth that your future business needs. By using the map, you can search by either metropolitan area to see the fastest growing industries, or by industry to see the fastest growing metropolitan areas. If you’re just looking for general growth areas, Inc. has gathered a list of the top ten metropolitan areas and their fastest growing industries.

1. Salt Lake City, Utah – Electronic shopping and mail order houses, software publishing, specialized freight trucking and credit intermediation
2. Grand Rapids-Wyoming, Michigan – Plastics products, motor vehicle parts, metalworking machinery, office furniture and hospitals
3. San Jose-Sunnyvale-Santa Clara, California – Software publishing, computer systems design, data processing and hosting, computer manufacturing and scientific research
4. Austin-Round Rock- San Marcos, Texas – Management, scientific and consulting services, computer systems design, data processing and hosting and semiconductor manufacturing
5. Houston-Sugar Land-Baytown, Texas – Utility system construction (specifically, oil and gas pipeline), mining support, metal and mineral wholesalers, oil and gas extraction and architectural and engineering services
6. Nashville-Davidson-Murfreesboro-Franklin, Tennessee – Independent artists, writers and performers, motor vehicle manufacturing, accounting services, general freight trucking and specialty hospitals
7. Provo-Orem, Utah – Software publishing, computer systems design and semiconductor manufacturing
8. Dallas-Fort Worth-Arlington, Texas – Computer systems design, communications equipment manufacturing, oil and gas extraction, office administration and credit intermediation
9. Bakersfield-Delano, California – Crop production, dairy product manufacturing and utility system construction (specifically, oil and gas pipeline)
10. Charlotte-Gastonia-Rock Hill, North Carolina/South Carolina – Spectator sports, telecommunication carriers, management, scientific and consulting services, scheduled air transportation and data processing and hosting

HOW-TO:

According to small business trends, there are two ways to handle moving your corporation from one state to another. The approach that is right for you will depend on:

• Whether your move is permanent or temporary.
• Whether you’re planning on also continuing business in your old state.

Approach #1: Your move is permanent and you have no plans to continue business in your old state.

Dissolve your corporation in the old state, start it in the new state.

1. File an “Articles of Dissolution” or “Certificate of Termination” document with your old state’s Secretary of State in order to dissolve your corporation.
2. Your corporation will need to be in good standing (up to date on state taxes, state filings, etc.)
3. Form a new Corporation with the Secretary of State in your new state

Approach #2: Your move is temporary or you are planning on continuing business in your old state. (This would also be the approach to take if you’re not moving, but just plan on conducting business in another state.)

File a Foreign Qualification in the new state.

1. File foreign corporation paperwork with the new state. In some states, it’s called the Statement and Designation; in other states it’s called the Foreign Qualification application.
2. Resembles the Articles of Incorporation document you first used to file your corporation
3. You may need to enter details such as your corporation’s name, domestic state, stock information, corporate offices, registered agent, principle office or location you’ll be using in your new state, etc.
4. Have a Certificate of Good Standing document from your domestic state

Remember that specifics may vary by state – plan to double check your state’s rules for legally moving a corporation. Filing upfront is much more simple and affordable than having to deal with the consequences of doing it improperly, so make sure you do it right the first time!