Thank you Elizabeth! It's May 2024 and I found this step by step video from you! A change happened in the last 2 yrs, certificate of status from California is no longer mailed to you, it's e-copy now. According to Nevada domestication codes: what's "The appropriate charter document for the type of domestic entity" and "A certified copy of the charter document,", I assume the latter one is original file document from California but what's the 1st one? I'm following your steps to convert my California LLC to Nevada, i'll come back update once I finish the whole process. Thank you again!
You may or may not have this answer but what if someone is moving the business and switching entity types at the same time? For example, SMLLC moving to Nevada and adding a partner now making them a MMLLC. Is the Nevada articles of conversion only for domestic entities?
Thank you so much! I followed the steps and LLC is set in the new state. Now I just need to handle the California side (old state) but shouldn't I dissolve the LLC in California vs converting it to a foreign LLC?
I just got my certificate of status from CA, paid $5 and it is immediately downloadable. I'm filing in NV too. I was lucky finding your video on the subject matter. Thank you. I have lived in NV since 11/20 and did change my LLC. I still have a statement of information that I did not do in 5/23. I plan to file taxes for 2023 and say final tax filing for my LLC. Any issues with not filing the SOI in 2023?
@@ElizabethPWI'm a bit confused, on the Form Articles of Domestication (for NV) 4. Jurisdiction - do I put the address that I used in CA when I formed the corporation?
@elizabethpw If I wanted to get a new name for the LLC when I bring it over to NV, would I be able to do so and still keep the same EIN number? Also I made my LLC in CA into an S Corp, now can I do a Nevada domestication for the S Corp the same way as an LLC?
@@ElizabethPW I paid for the 24 hour filing and they Rejected me and told me why. I was working with Lynne at the NV SOS and she helped submit for me. They approved in one day and I receive my documents same day. I did an Corp and total cost was $1,200. (Did this on my own with your help Elizabeth). Found a service company in Vegas that charged $300
@@jennifersilletto179 Hi Jennifer, I'm doing the same thing here, move my california llc to nevada. According to this video, i need two documents from california (certificate of status and original file which i have); and 3 documents for Nevada: articles of domestication; LLC articles of organization; Amended/Annual List of Managers or Members/Business License Application. The last two can be filed online - did you choose to do it online or you mail all documents in. I'm still not sure if i can get this go through on my own. would you share that service company you found which charges $300. Thank you so much!
Hey, Ms. Weinstein just got done watching your video about the termination of a CA LLC, as well as the domestication/conversion of a CA LLC. I had a few questions in regards to both videos. I hope you can help me with if that's okay. 1. If I convert my LLC from California to another state (Wyoming, for example), will I still be subject to paying the California franchise tax for my newly converted Wyoming LLC? 2. In the event I'm still a California resident with an LLC converted into Wyoming, am I still subject to the franchise tax because of my California residency?
If you convert all the way (including filing the paperwork in CA) then it is no longer in CA so it does not pay franchise fee. However, sometimes you would need to register as a foreign LLC in CA because you are "doing business" in CA -- not just if you are the owner and live here, but if you have an employee (including yourself), office, clients, inventory, etc. here
@ElizabethPW Thank you so much! I greatly appreciate your response... Lastly, would filing a foreign LLC still apply if my business takes place solely online?
What is the difference between converting and domesticating? I want to move my CA LLC to NV and keep the same exact business structure and identity. Nevada has both the option to domesticate OR convert a foreign entity in. Confused!
Typically the forms are a little different and many states just have one or the other. Technically they are slightly different but practically the effect is similar. Many states require you to match it (the "from" state and the "to" state) so both are domestication or both are conversion etc.
Hi Elizabeth, I am trying to Domesticate/conversion my LLC from CA to CO. Already submitted CO combined conversion form to CO SOS. CO SOS website now shows my business has been converted. Now I am not sure whether to submit CA Certificate of Conversion or Dissolve my active LLC in CA. I don't wanna loose my business EIN, records and creditline. Please help!
When converting to a new state, you file conversion paperwork in both states - both the "to" state and the "from" state. Here's a link to the forms in California - www.sos.ca.gov/business-programs/business-entities/conversion-information
Here's my update: I was able to complete the process of converting my California LLC to Nevada LLC via domestication filing. I called the secretary of state california to ask about form CONV-1A, the person told me that I can file termination without a fee if I don't do business in California any more. so I terminated the business in California. @ElizabethPW is this the right process? I just have one concern because during the whole process, no EIN is asked. I assume my EIN stays the same? Thank you! your video helps a lot!
Hm when I do this, I do a domestication on the Nevada side and a conversion (conversion-out) on the California side. But yes you keep the same EIN, that's one of the great parts about it.
Hello there. I live in Los Angeles where my house is, I started a LLC in Nevada and I will like to domesticate to California to be able to quick deed my house over to my LLC is this possibly?
Hi Elizabeth, followed your tutorial to domesticate a CA LLC to NV, however need some advise on how to proceed if you do not want to keep the CA LLC active as all business operations including my self physically have no ties to CA after this move. Would I dissolve the CA LLC now that NV LLC is active? Or is there another process that needs to be done? Also the CA LLC has been taxed as an S-Corp with the IRS. Would any of this domestication make me lose the S-Corp status?
@@ElizabethPW oh no! I was told it doesn’t change bc the entity is state level- and I just applied for the conversion. We DO NOT want the ein changing.
Hi Elizabeth. Is this a service that you can provide? I have an LLC in CA but properties in TX. I 103x my properties in CA to buy in TX that is why I have the CA LLC. But now that they are in TX, can I domesticate in NE even if I don't do business there?
You can move a CA to any other state, even if you don't do business there. The issue that you might need to register as an out of state ("foreign") LLC in Texas if you are doing business there with rental properties (and TX charges a lot of $ for that).
@@ElizabethPW Thank you for your response. I will check on TX foreign charges. Otherwise, it makes more sense to transfer the LLC to TX instead of Nevada.
Would the date of conversion be the physical move date or would it be date of approval? If I moved my business operations in 2023 but file the paperwork in 2024, will I be able to file a tax return in the new state for 2023?
Hm it does depend on the laws of that state, but typically it is not when you physically move -- it is a legal date where you pick a date of conversion that's approved by the owners/managers. Usually it cannot be in the past but there may be some state that allows it -- depends on that state's laws
Is it possible to convert/domesticate a California LLC to Virginia? I have an LLC based in Cali and the $800 franchise fee is a lot. I sold my properties in Cali and only have property in VA so was wondering if I could just domesticate in VA?
Hi Elizabeth, thank you for providing small business owners so much valuable information! I am domesticating my single member LLC from CA to AL. Since AL does not allow classic domestication/conversion, I understand that I can only domesticate to AL with a merger. My concern is that this will take time, probably into the new year. I read on the FTB website that there is a 15 day exception for the LLC tax if I don‘t do business in California during the taxable year and my taxable year is 15 days or less. (refer to R&TC 17946). Is my understanding correct that this applies to my business if I can move it out of CA by January 15, 2023? Thank you!
Agreed a merger takes time (really a conversion or domestication will take time too -- I've had them take months sometimes). Yes my understanding is also that the 15-day would apply into January, assuming you didn't operate any business during those days, but you should check with your tax person to confirm.
Elizabeth, this was very helpful, thank you! I've seen some services online that include filing dissolution in CA upon domestication to NV. You didn't mention it (or I missed it). Is this recommended practice?
Hm so if you are doing conversion/domestication, then you file the domestication in NV and conversion in CA. Here's info on that in CA www.sos.ca.gov/business-programs/business-entities/conversion-information
Hi Elizabeth! Thank you so much for your help! So my LLC is in good standing since March of 2018 in MO. In March 2022, I decided to become a team driver as an owner operator cross country truck driver. My CPA thinks we should register as a foreign agent instead of doing a Domestication. Do you think I should push the issue or just go for the Foreign entity?
Oh, lol, I meant also to say I'm going to move the business address to Florida. My co driver lives in FL, so we have an actual address and it will make payroll and everything else simpler. Except so far, it hasn't been simple. Lol. Anyway, thank you again for all your videos and help!
Doing a foreign LLC registration is simpler to get set up, since it is just one filing and is probably a standard form. Moving to another state tends to be a lot of paperwork and filings, and takes a while (the last few times it has taken up to 6 months because so many filings by mail). In the end it is better because you don't have to keep up paperwork / tax filings in two states, but it will take a while. Could start as doing the foreign filing so is faster, and then do the moving over time.
Hey what did u end up doing? I’m going thru same thing.my trucking company started in fl but I moved to Georgia.so tryna see best way to do with my llc.and ga insurance cheaper than fl
Hi Elizabeth, all I can say is WOW + Thank you for providing great content. Please keep posting! I have a question. As a military spouse who moves every three years or so, would it make sense to do an LLC (Currently in Hawaii, moving in 6 months) and move the LLC to new a state with every move we make (could get stationed overseas as well)? OR would it make more sense to do Sole Proprietorship with E&O insurance taxed as (self-employed) until my husband retires (in about nine years ) and we settle in one place? Which sounds crazy even writing. Can you see my dilemma?
Yes I get what you mean. It really depends if you need the benefits of an LLC (asset protection, tax planning, marketing) or not. If not, then a sole prop with insurance would be much more logistically easy and less expensive
Hi hope all is great.. ? It's been year since I use my corp. It's outdated can get it back active? .. but it was set up in new york.. but Im in FLA now.. Thanxxx have a awesome one 💯
Check with NY to see if it is still active and could be reactivated. But it may be easier to just set up a new corp in Florida (moving corporations from NY to other states is tedious).
Hey Elizabeth! Thanks for the great content! I had a question. I am converting my LLC from UT to FL and there are both a domesticated document and conversion documents on Florida's government site. From the looks of it, its seems as I can just do the converting document fill it out and pay the fees. Do you have any advice?
Generally I'd use domestication vs conversion, if it is allowed. So for you to use domestication, then *both* states have to have domestication (and you file paperwork in both states). Utah does have domestication corporations.utah.gov/wp-content/uploads/2021/09/llcartdomestication.pdf so you'd file the domestication in Utah (to move to foreign) and file domestication in FL (to move from foreign).
Hi Elizabeth, thank you for this wonderful video. I'm in the process of converting my LLC from MN to TX. TX already approved it and I am submitting the documents in MN now. I am finding controversial information about EIN. My understanding is with the converting/domestication process, you get to keep the EIN the same. Is there anything that has to be filed with the IRS about moving states? Thank you!!
Yes my understanding is that if you are doing a conversion or domestication, it is the "same" company so you use the same EIN (this is not the same for a merger, where the resulting company is not the same company). Hm you could just write them to let them know that the state has changed, here's info about a name change and I'd think it is a similar process: www.irs.gov/businesses/business-name-change
Hello Elizabeth, what form is needed to convert a foreign (United States) LLC to a California LLC? Also, what other documents should I attach for the proper processing of the conversion? Thanks for your help and videos.
You'd file "Articles of Organization with Statement of Conversion" in CA and then some similar conversion/domestication/merger document in the other state.
Great content Elizabeth! I am converting my LLC from CA to WA state. Do I pay the $150 fee if a California corporation is the converting entity? or $30 for all other conversions. I am assuming the $30 fee only since I am converting my current CA LLC to and moving Washington State which is considered foreign.
Right if you are converting a California LLC to somewhere/something else, in the "converting entity" information section you list the info about the California LLC
Hi Elizabeth, what would be the process of converting my current LLC in California to a newly established LLC in Wyoming but remain operating in California? Not sure if this makes sense. Thank you.
So what you are doing is converting the CA LLC to a Wyoming LLC, and then you will register that Wyoming LLC in California as a "foreign" LLC. Note - you will still have to pay the $800/year franchise fee to CA, even as a foreign LLC.
Elizabeth, great video. If i completed a CA LLC Out-of-State filing for my Texas LLC, but would rather have the LLC only in CA, how do i complete the Conversion/Domestication? I step thru the Conversion online form and when i get to LLC name it says "already exists". Should i keep it TX based? I would have to pay for a TX based Registered Agent. But is that still better for taxes...?
Ah sounds like that is a bizfile problem -- the algorithm doesn't realize that you are the foreign LLC registration and is trying to prevent someone else from creating a new LLC with the same name via conversion. If it was me, I'd file via PDF/mail and include a letter stating that you are the same entity as the foreign LLC registration and now you are converting the foreign LLC to be domesticated in CA.
Hello Elizabeth, thank you for this video! I just have one question.. So I inherited a trucking business from my in-laws and and in the process of converting/domesticating the business from OR to WA in order to keep the history and continuity of the business. I have filed the Articles of Conversion with WA state and have received a UBI# and got an established business from WA state. However, I am not 100% what I am supposed to do with the OR business now. I have received mixed messages from WA/OR state representatives. Some suggest dissolving the business in OR since I covered to WA already, and some suggest submitting Articles of Conversion in OR letting them know that I moved to WA. I want to make sure I have the right answer before I give up another $275 for the conversion in OR. Since, I believe the dissolution is free. Thank you in advance! Your videos are super helpful!!
There's multiple ways of doing it. Could be that you transfer assets of the old business to the new, and then you'd just shut down the old biz. But could also do a conversion or merger, when the old biz itself goes into the new business (or just moves). There's a bunch of tax reasons (and a few legal reasons) for doing one versus the other -- you'd need an accountant to tell you what makes sense for the taxes, for your particular situation.
Dose Washington State Allow conversion/domestication ? Because I have registered an LLC in Washington state in March 2022 but I did not don any business activities on behalf of that company now I move to California plz give me your suggestion. Thank you
Yep here's info on Wash State conversion - www.sos.wa.gov/corporations-charities/resources/entity-conversions#:~:text=Corporation%20and%20Limited%20Liability%20Company,convert%20to%20a%20corporate%20structure.
Hello. Can you please reply or do a video on Withholding tax requirements. I got a letter from Franchise Tax Board regarding resident and nonresident withholding guidelines, it says refer to FTB Pub 1017. Not sure what this is but I really need your assistance. Thank you kindly 🙏
So if the business pays independent contractors or owners who are not residents of California, the state of CA still wants to make sure they pay taxes on that income. So, they make the business withhold a certain percentage (7% for contractors, for example), so the contractor/owner will file a tax return in CA even though they don't live here. If you pay someone less than $1500, you don't have to do this. There are other exceptions and waivers, too.
Hello Elisabeth, i hope you are doing well, i am a foreigner and i have signed up an LLC in the state of Texas. i have 1 friend in the state holding SSN, can i use his SSN to get my EIN for LLC. looking forward to hearing from you. thank you
The "responsible tax partner" has to be someone who is a "true principal officer, general partner, grantor, owner or trustor" of the LLC. They need to be the one who has control or directs the LLC. So, if you friend is a business partner in this business, that would be fine. If not, you'll need to get your ITIN - you can use an acceptance agent to help (www.irs.gov/individuals/international-taxpayers/acceptance-agent-program)
Hm I'm not sure what attorneys charge generally for this, since the complexity really depends upon the situation. If price is a big issue, you may try to see if you accountant/CPA will help with this -- it is mostly forms and if you don't need legal advice about it, they may provide that service at a lower cost.
Hi Elizabeth, Thanks for your video. I am trying to move the trucking business from Lincoln, NE, to Modesto, CA. Please refer me to someone who helped me with the conversion process.
Hello Elizabeth, I came across your page while researching here on UA-cam. I’m a single member llc. I registered in NJ but I haven’t done any business (I still file taxes) I would like to do business in NYC and I was wondering how do I go about that. I would appreciate your feedback. Thank you
Hi - it depends upon how you want to do business in NYC. If you have a physical connection such as a location and/or NYC employees, then you'd need to register as a business in NY (for taxes and as a foreign LLC). But if there's no physical connection, the "nexus" requirements are about the number of transactions and the amount of money. Like for sales tax registrations in NY for a vendor with no physical presence, it is $500K and 100 transactions.
@@ElizabethPW thank you so much. I now reside in NYC and believe it would be best to bring the business here. I’m trying to avoid being taxed in NJ and NY especially that I would be conducting business from my NYC apartment with a virtual address
Yes I agree that it usually makes sense to have your business in the same place where you are living, so you don't end up needing to pay taxes and file forms in multiple states.
Hey I registered an LLC in Alabama in 2019, however I have never used it and the business has not generated any income. I relocated to Georgia and ready to use the business. Is it possible for me to just register a new business with new name in Georgia and dissolve the old LLC at a later date ? Or would it be better for me to dissolve now and re register the previous LLC in Georgia.
If you never used the old Alabama LLC (and there's no assets owned by it etc.) then yes usually it would make sense to just dissolve it (now or later) and start with a new LLC in your new state. You can have LLCs with the same name in multiple states because it is state-by-state.
Thank you Elizabeth! It's May 2024 and I found this step by step video from you! A change happened in the last 2 yrs, certificate of status from California is no longer mailed to you, it's e-copy now. According to Nevada domestication codes: what's "The appropriate charter document for the type of domestic entity" and "A certified copy of the charter document,", I assume the latter one is original file document from California but what's the 1st one? I'm following your steps to convert my California LLC to Nevada, i'll come back update once I finish the whole process. Thank you again!
Charter document is the thing you file to create the entity (Articles of Incorporation)
I just want to thank you for all the information you provide. You are an angle, truly a blessing.
You are so welcome
You may or may not have this answer but what if someone is moving the business and switching entity types at the same time? For example, SMLLC moving to Nevada and adding a partner now making them a MMLLC. Is the Nevada articles of conversion only for domestic entities?
Thank you so much! I followed the steps and LLC is set in the new state. Now I just need to handle the California side (old state) but shouldn't I dissolve the LLC in California vs converting it to a foreign LLC?
If you set up the LLC in the new state via their conversion/domestication process, then you convert it "out" of CA by filing conversion in CA, also
Thank you so much. Your video is so helpful and so appreciated. I just was able to download my certificate of good standing in California so yay.
Glad it was helpful!
Thank you so much for this information! I will use this once I move next month!
Great to hear!
Here are the different options to move your LLC, if you're not sure if a conversion/domestication is for you: ua-cam.com/video/A_yTWcNyRhQ/v-deo.html
I just got my certificate of status from CA, paid $5 and it is immediately downloadable. I'm filing in NV too. I was lucky finding your video on the subject matter. Thank you. I have lived in NV since 11/20 and did change my LLC. I still have a statement of information that I did not do in 5/23. I plan to file taxes for 2023 and say final tax filing for my LLC. Any issues with not filing the SOI in 2023?
It seems that lately they will let you just terminate or move the LLC without fixing the SOI ... if they won't let you, they will let you know!
@@ElizabethPWI'm a bit confused, on the Form Articles of Domestication (for NV) 4. Jurisdiction - do I put the address that I used in CA when I formed the corporation?
@elizabethpw If I wanted to get a new name for the LLC when I bring it over to NV, would I be able to do so and still keep the same EIN number? Also I made my LLC in CA into an S Corp, now can I do a Nevada domestication for the S Corp the same way as an LLC?
@@ElizabethPW I paid for the 24 hour filing and they Rejected me and told me why. I was working with Lynne at the NV SOS and she helped submit for me. They approved in one day and I receive my documents same day. I did an Corp and total cost was $1,200. (Did this on my own with your help Elizabeth). Found a service company in Vegas that charged $300
@@jennifersilletto179 Hi Jennifer, I'm doing the same thing here, move my california llc to nevada. According to this video, i need two documents from california (certificate of status and original file which i have); and 3 documents for Nevada: articles of domestication; LLC articles of organization; Amended/Annual List of Managers or Members/Business License Application. The last two can be filed online - did you choose to do it online or you mail all documents in. I'm still not sure if i can get this go through on my own. would you share that service company you found which charges $300. Thank you so much!
Hey, Ms. Weinstein just got done watching your video about the termination of a CA LLC, as well as the domestication/conversion of a CA LLC. I had a few questions in regards to both videos. I hope you can help me with if that's okay. 1. If I convert my LLC from California to another state (Wyoming, for example), will I still be subject to paying the California franchise tax for my newly converted Wyoming LLC?
2. In the event I'm still a California resident with an LLC converted into Wyoming, am I still subject to the franchise tax because of my California residency?
If you convert all the way (including filing the paperwork in CA) then it is no longer in CA so it does not pay franchise fee. However, sometimes you would need to register as a foreign LLC in CA because you are "doing business" in CA -- not just if you are the owner and live here, but if you have an employee (including yourself), office, clients, inventory, etc. here
@ElizabethPW Thank you so much! I greatly appreciate your response... Lastly, would filing a foreign LLC still apply if my business takes place solely online?
What is the difference between converting and domesticating? I want to move my CA LLC to NV and keep the same exact business structure and identity. Nevada has both the option to domesticate OR convert a foreign entity in. Confused!
Typically the forms are a little different and many states just have one or the other. Technically they are slightly different but practically the effect is similar. Many states require you to match it (the "from" state and the "to" state) so both are domestication or both are conversion etc.
Thank you Elizabeth
Welcome!
Hi Elizabeth, I am trying to Domesticate/conversion my LLC from CA to CO. Already submitted CO combined conversion form to CO SOS. CO SOS website now shows my business has been converted. Now I am not sure whether to submit CA Certificate of Conversion or Dissolve my active LLC in CA. I don't wanna loose my business EIN, records and creditline. Please help!
When converting to a new state, you file conversion paperwork in both states - both the "to" state and the "from" state. Here's a link to the forms in California - www.sos.ca.gov/business-programs/business-entities/conversion-information
Here's my update: I was able to complete the process of converting my California LLC to Nevada LLC via domestication filing. I called the secretary of state california to ask about form CONV-1A, the person told me that I can file termination without a fee if I don't do business in California any more. so I terminated the business in California. @ElizabethPW is this the right process? I just have one concern because during the whole process, no EIN is asked. I assume my EIN stays the same? Thank you! your video helps a lot!
Hm when I do this, I do a domestication on the Nevada side and a conversion (conversion-out) on the California side. But yes you keep the same EIN, that's one of the great parts about it.
Can you do for one Indiana or help me figure this out i have a few questions and I will pay
Sorry I don't do this work anymore
Hello there. I live in Los Angeles where my house is, I started a LLC in Nevada and I will like to domesticate to California to be able to quick deed my house over to my LLC is this possibly?
You can move the llc to CA. Whether you can retitle the house to the llc depends on whether there’s a mortgage or any other liens on it
Hi Elizabeth, followed your tutorial to domesticate a CA LLC to NV, however need some advise on how to proceed if you do not want to keep the CA LLC active as all business operations including my self physically have no ties to CA after this move. Would I dissolve the CA LLC now that NV LLC is active? Or is there another process that needs to be done?
Also the CA LLC has been taxed as an S-Corp with the IRS. Would any of this domestication make me lose the S-Corp status?
You file domesitcation / conversion paperwork in both states, NV and CA. The business should keep its tax status
Liz!!! Pls answer!! Do you know if you do all of this but go from a Corp to an LLC upon converting, if your EIN changes?
Yes the LLC needs its own EIN
@@ElizabethPW oh no! I was told it doesn’t change bc the entity is state level- and I just applied for the conversion. We DO NOT want the ein changing.
Hm you may need to ask the IRS to be sure, really it is up to them, tel:800-829-4933
Hi Elizabeth. Is this a service that you can provide? I have an LLC in CA but properties in TX. I 103x my properties in CA to buy in TX that is why I have the CA LLC. But now that they are in TX, can I domesticate in NE even if I don't do business there?
You can move a CA to any other state, even if you don't do business there. The issue that you might need to register as an out of state ("foreign") LLC in Texas if you are doing business there with rental properties (and TX charges a lot of $ for that).
@@ElizabethPW Thank you for your response. I will check on TX foreign charges. Otherwise, it makes more sense to transfer the LLC to TX instead of Nevada.
Would the date of conversion be the physical move date or would it be date of approval? If I moved my business operations in 2023 but file the paperwork in 2024, will I be able to file a tax return in the new state for 2023?
Hm it does depend on the laws of that state, but typically it is not when you physically move -- it is a legal date where you pick a date of conversion that's approved by the owners/managers. Usually it cannot be in the past but there may be some state that allows it -- depends on that state's laws
Hi Elizabeth, would you be available for a brief consultation call?
Thank you, Jesse
Hi, if you'd like to talk by phone, check out the Patreon - www.patreon.com/elizabethpw
Is it possible to convert/domesticate a California LLC to Virginia? I have an LLC based in Cali and the $800 franchise fee is a lot. I sold my properties in Cali and only have property in VA so was wondering if I could just domesticate in VA?
Also would I wait for Virginia to approve the domestication before I file the Conv-1A with Cali?
Generally you get approval from the state where you are moving to, and then you file in the "from" state
Please help, I asked my lawyer and they said to file the articles of orginization from california for nevada is that true?
For what you file in Nevada, you file the Nevada paperwork
Hi Elizabeth, thank you for providing small business owners so much valuable information! I am domesticating my single member LLC from CA to AL. Since AL does not allow classic domestication/conversion, I understand that I can only domesticate to AL with a merger. My concern is that this will take time, probably into the new year. I read on the FTB website that there is a 15 day exception for the LLC tax if I don‘t do business in California during the taxable year and my taxable year is 15 days or less. (refer to R&TC 17946). Is my understanding correct that this applies to my business if I can move it out of CA by January 15, 2023? Thank you!
Agreed a merger takes time (really a conversion or domestication will take time too -- I've had them take months sometimes). Yes my understanding is also that the 15-day would apply into January, assuming you didn't operate any business during those days, but you should check with your tax person to confirm.
Thank you very much! I will confirm this with my tax person.
🔥🔥 video. This info can't be free. Make sure you invoice me the consulting fee 😃
Glad you liked it! :)
You are Awesome!!! I just sent you an email as well. Your channel is GREAT!
Thanks! :)
Elizabeth, this was very helpful, thank you! I've seen some services online that include filing dissolution in CA upon domestication to NV. You didn't mention it (or I missed it). Is this recommended practice?
Hm so if you are doing conversion/domestication, then you file the domestication in NV and conversion in CA. Here's info on that in CA www.sos.ca.gov/business-programs/business-entities/conversion-information
Hi Elizabeth! Thank you so much for your help! So my LLC is in good standing since March of 2018 in MO. In March 2022, I decided to become a team driver as an owner operator cross country truck driver. My CPA thinks we should register as a foreign agent instead of doing a Domestication. Do you think I should push the issue or just go for the Foreign entity?
Oh, lol, I meant also to say I'm going to move the business address to Florida. My co driver lives in FL, so we have an actual address and it will make payroll and everything else simpler. Except so far, it hasn't been simple. Lol. Anyway, thank you again for all your videos and help!
Doing a foreign LLC registration is simpler to get set up, since it is just one filing and is probably a standard form. Moving to another state tends to be a lot of paperwork and filings, and takes a while (the last few times it has taken up to 6 months because so many filings by mail). In the end it is better because you don't have to keep up paperwork / tax filings in two states, but it will take a while. Could start as doing the foreign filing so is faster, and then do the moving over time.
Hey what did u end up doing? I’m going thru same thing.my trucking company started in fl but I moved to Georgia.so tryna see best way to do with my llc.and ga insurance cheaper than fl
@@ElizabethPW which is better?
Hi Elizabeth, all I can say is WOW + Thank you for providing great content. Please keep posting! I have a question. As a military spouse who moves every three years or so, would it make sense to do an LLC (Currently in Hawaii, moving in 6 months) and move the LLC to new a state with every move we make (could get stationed overseas as well)? OR would it make more sense to do Sole Proprietorship with E&O insurance taxed as (self-employed) until my husband retires (in about nine years ) and we settle in one place? Which sounds crazy even writing. Can you see my dilemma?
Yes I get what you mean. It really depends if you need the benefits of an LLC (asset protection, tax planning, marketing) or not. If not, then a sole prop with insurance would be much more logistically easy and less expensive
Hi hope all is great.. ? It's been year since I use my corp. It's outdated can get it back active? .. but it was set up in new york.. but Im in FLA now.. Thanxxx have a awesome one 💯
Check with NY to see if it is still active and could be reactivated. But it may be easier to just set up a new corp in Florida (moving corporations from NY to other states is tedious).
Hey Elizabeth! Thanks for the great content! I had a question. I am converting my LLC from UT to FL and there are both a domesticated document and conversion documents on Florida's government site. From the looks of it, its seems as I can just do the converting document fill it out and pay the fees. Do you have any advice?
Generally I'd use domestication vs conversion, if it is allowed. So for you to use domestication, then *both* states have to have domestication (and you file paperwork in both states). Utah does have domestication corporations.utah.gov/wp-content/uploads/2021/09/llcartdomestication.pdf so you'd file the domestication in Utah (to move to foreign) and file domestication in FL (to move from foreign).
Hi Elizabeth, thank you for this wonderful video. I'm in the process of converting my LLC from MN to TX. TX already approved it and I am submitting the documents in MN now. I am finding controversial information about EIN. My understanding is with the converting/domestication process, you get to keep the EIN the same. Is there anything that has to be filed with the IRS about moving states? Thank you!!
Yes my understanding is that if you are doing a conversion or domestication, it is the "same" company so you use the same EIN (this is not the same for a merger, where the resulting company is not the same company). Hm you could just write them to let them know that the state has changed, here's info about a name change and I'd think it is a similar process: www.irs.gov/businesses/business-name-change
Hello Elizabeth, what form is needed to convert a foreign (United States) LLC to a California LLC? Also, what other documents should I attach for the proper processing of the conversion?
Thanks for your help and videos.
You'd file "Articles of Organization with Statement of Conversion" in CA and then some similar conversion/domestication/merger document in the other state.
Great content Elizabeth! I am converting my LLC from CA to WA state. Do I pay the $150 fee if a California corporation is the converting entity? or $30 for all other conversions. I am assuming the $30 fee only since I am converting my current CA LLC to and moving Washington State which is considered foreign.
Sounds like you are just having a CA LLC and a foreign converted biz so the fee is $30
But wouldn't Item 7 need to be filled out since the "converting" entity, in this case is a California LLC like the instructions say?
Right if you are converting a California LLC to somewhere/something else, in the "converting entity" information section you list the info about the California LLC
Hi Elizabeth, what would be the process of converting my current LLC in California to a newly established LLC in Wyoming but remain operating in California? Not sure if this makes sense. Thank you.
So what you are doing is converting the CA LLC to a Wyoming LLC, and then you will register that Wyoming LLC in California as a "foreign" LLC. Note - you will still have to pay the $800/year franchise fee to CA, even as a foreign LLC.
Elizabeth, great video. If i completed a CA LLC Out-of-State filing for my Texas LLC, but would rather have the LLC only in CA, how do i complete the Conversion/Domestication? I step thru the Conversion online form and when i get to LLC name it says "already exists". Should i keep it TX based? I would have to pay for a TX based Registered Agent. But is that still better for taxes...?
Ah sounds like that is a bizfile problem -- the algorithm doesn't realize that you are the foreign LLC registration and is trying to prevent someone else from creating a new LLC with the same name via conversion. If it was me, I'd file via PDF/mail and include a letter stating that you are the same entity as the foreign LLC registration and now you are converting the foreign LLC to be domesticated in CA.
Hello Elizabeth, thank you for this video! I just have one question..
So I inherited a trucking business from my in-laws and and in the process of converting/domesticating the business from OR to WA in order to keep the history and continuity of the business. I have filed the Articles of Conversion with WA state and have received a UBI# and got an established business from WA state. However, I am not 100% what I am supposed to do with the OR business now. I have received mixed messages from WA/OR state representatives. Some suggest dissolving the business in OR since I covered to WA already, and some suggest submitting Articles of Conversion in OR letting them know that I moved to WA.
I want to make sure I have the right answer before I give up another $275 for the conversion in OR. Since, I believe the dissolution is free.
Thank you in advance! Your videos are super helpful!!
There's multiple ways of doing it. Could be that you transfer assets of the old business to the new, and then you'd just shut down the old biz. But could also do a conversion or merger, when the old biz itself goes into the new business (or just moves). There's a bunch of tax reasons (and a few legal reasons) for doing one versus the other -- you'd need an accountant to tell you what makes sense for the taxes, for your particular situation.
Would it be possible for you to do a video on moving an LLC to Texas?
Hm I don't know if I will be doing videos on more states, but I'll add that to my "requested" list!
Dose Washington State Allow conversion/domestication ? Because I have registered an LLC in Washington state in March 2022 but I did not don any business activities on behalf of that company now I move to California plz give me your suggestion. Thank you
Yep here's info on Wash State conversion - www.sos.wa.gov/corporations-charities/resources/entity-conversions#:~:text=Corporation%20and%20Limited%20Liability%20Company,convert%20to%20a%20corporate%20structure.
Do we need a business certificate for e-commerce in California?
You need a sellers permit (aka sales tax permit) if you are selling products in California.
Hello. Can you please reply or do a video on Withholding tax requirements. I got a letter from Franchise Tax Board regarding resident and nonresident withholding guidelines, it says refer to FTB Pub 1017. Not sure what this is but I really need your assistance. Thank you kindly 🙏
So if the business pays independent contractors or owners who are not residents of California, the state of CA still wants to make sure they pay taxes on that income. So, they make the business withhold a certain percentage (7% for contractors, for example), so the contractor/owner will file a tax return in CA even though they don't live here. If you pay someone less than $1500, you don't have to do this. There are other exceptions and waivers, too.
@@ElizabethPW what if it’s just a single member LLC?
Hello Elisabeth, i hope you are doing well, i am a foreigner and i have signed up an LLC in the state of Texas. i have 1 friend in the state holding SSN, can i use his SSN to get my EIN for LLC. looking forward to hearing from you. thank you
The "responsible tax partner" has to be someone who is a "true principal officer, general partner, grantor, owner or trustor" of the LLC. They need to be the one who has control or directs the LLC. So, if you friend is a business partner in this business, that would be fine. If not, you'll need to get your ITIN - you can use an acceptance agent to help (www.irs.gov/individuals/international-taxpayers/acceptance-agent-program)
Do you know what is the average price for this type of service? If I was to hire someone to help me move my LLC from NV to CA?
Hm I'm not sure what attorneys charge generally for this, since the complexity really depends upon the situation. If price is a big issue, you may try to see if you accountant/CPA will help with this -- it is mostly forms and if you don't need legal advice about it, they may provide that service at a lower cost.
If I’m a part time resident of two states, does it matter which state I form my LLC in?
I'd look at logistics and costs of having the business in either state -- typically one state will have higher initial and annual fees than the other.
Hi Elizabeth, Thanks for your video. I am trying to move the trucking business from Lincoln, NE, to Modesto, CA. Please refer me to someone who helped me with the conversion process.
Sorry, I don't have any referrals. Best of luck with your search!
Hello Elizabeth, I came across your page while researching here on UA-cam. I’m a single member llc. I registered in NJ but I haven’t done any business (I still file taxes) I would like to do business in NYC and I was wondering how do I go about that. I would appreciate your feedback. Thank you
Hi - it depends upon how you want to do business in NYC. If you have a physical connection such as a location and/or NYC employees, then you'd need to register as a business in NY (for taxes and as a foreign LLC). But if there's no physical connection, the "nexus" requirements are about the number of transactions and the amount of money. Like for sales tax registrations in NY for a vendor with no physical presence, it is $500K and 100 transactions.
@@ElizabethPW thank you so much. I now reside in NYC and believe it would be best to bring the business here. I’m trying to avoid being taxed in NJ and NY especially that I would be conducting business from my NYC apartment with a virtual address
Yes I agree that it usually makes sense to have your business in the same place where you are living, so you don't end up needing to pay taxes and file forms in multiple states.
Hey I registered an LLC in Alabama in 2019, however I have never used it and the business has not generated any income. I relocated to Georgia and ready to use the business. Is it possible for me to just register a new business with new name in Georgia and dissolve the old LLC at a later date ? Or would it be better for me to dissolve now and re register the previous LLC in Georgia.
If you never used the old Alabama LLC (and there's no assets owned by it etc.) then yes usually it would make sense to just dissolve it (now or later) and start with a new LLC in your new state. You can have LLCs with the same name in multiple states because it is state-by-state.