You formed an LLC, but the state no longer fits? Maybe better tax conditions, fewer reporting duties or simply lower costs are calling. Especially as a foreign entrepreneur or freelancer who wants to work tax-free with a US LLC, the choice of state can make the difference. The good news: you can move your LLC under certain conditions, and we help you do it.
Why move an LLC?
Typical reasons for moving your LLC:
- Tax optimisation (for example, switching from California to Wyoming or New Mexico)
- Less bureaucracy and fewer ongoing obligations
- Banking problems or unwanted disclosure requirements in your current state
- Wanting a "Ltd" suffix (possible in New Mexico or Nevada, for example)
- You simply chose the wrong state at formation (Delaware, for example)
Your options at a glance
1. Domestication (redomestication)
If both your current state and your target state allow it, you can formally "move" your LLC. This is not a new company but a relocation of the existing LLC.
Advantages:
- The LLC stays the same (no new tax number)
- Contracts, Stripe access and bank accounts remain in place
- Usually a fairly simple process
Example states with domestication:
- Texas
- Florida
- Nevada
- Wyoming
- Delaware
- California
- New Mexico
2. Conversion (only in certain states)
Some states, such as California, do not allow classic domestication but offer a "conversion": legally somewhat different, but similar in result.
3. New formation plus transfer of assets
If you can't, or don't want to, domesticate or convert, the pragmatic solution remains:
- Form a new LLC in the target state
- Transfer the assets (website, clients, Stripe and so on)
- Close the old LLC or leave it inactive
Watch out: some banks or payment providers will want new documents or will review your structure again, so prepare everything well!
What happens to the tax number (EIN)?
- With a domestication, the EIN stays the same
- With a new formation, you need a new EIN
- If you structure things smartly, you can work out with us how to transfer contracts and tax matters cleanly
A real example: from California to Wyoming
One entrepreneur had formed his LLC in California. The result: $800 in annual tax, regardless of profit! And plenty of obligations.
After a year, we helped him move his company to Wyoming, through a new formation and transfer. Today he pays no income taxes, files just a short annual report each year, has no more problems with the bank, and everything carries on as before.
Want to move your LLC? Let's talk!
At Mount Bonnell Advisors, we take care of everything:
- We check whether a domestication is possible for you
- If not, we design a safe, clean new structure with you
- We handle contracts, domains, Stripe, banks and the rest
- And we help you not trigger any US taxes, during the move too
Talk to us if you want to do it right
You want to move your LLC but aren't sure which route is the right one? Whether domestication is possible, how to transfer contracts, clients and bank accounts, or whether you'd rather start completely fresh?
Then book an appointment with us. Our consultation costs $850 and is held in English. For that, you get an individual assessment of your situation, including possible structure proposals, legal considerations and a clear recommendation for action.
Book a consultation now (held in English only)
Important: we are not a formation platform. And we don't help you just somehow, but properly: structured, international, tax-optimised.