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Online business, LLC, registered in MI, but moving to NY?

Asked by: M. Eliza - 19 August, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 I recently started an LLC for my online company in Michigan. I am now moving to NY. I mainly use a dropship method to get the merchandise to my customers. What are my options? I've read that I will have to either dissolve, merge, or file for foreign qualification. I also read that since it's internet based, I really won't have to do any of that unless I start storing merchandise and shipping from my NY address?
Any help is appreciated.
Answered by: Ray Albert - 21 August, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/194.jpg-630c771619e92bede7e6f696b56767b9 Dear M. Eliza,

Typically with an online business, you could live and operate your business from a different state than the one where your company is registered in.

If you plan to continue having the products stored and shipped from Michigan, you will not necessarily have to register in New York. If you plan to start storing or shipping products from New York, then you would have to either form a new entity in NY state, or file your Michigan LLC as a foreign entity.

Keep in mind, if you plan to write off your business expenses in New York, it could create a nexus in that state, and you would have to eventually be registered there. Additionally, when you register as a foreign entity, you would use the same EIN for the business, however you would need to obtain any required permits in the new state as well, such as any distributor/reseller permits.

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