Domestication

Moving Your Company Domicile From One State To Another

If you want to move your company from the state of formation to a different state it would need to go through the process of changing company domicile (also called “domestication”). You can change the domicile from any state, but only into a state that support domestication.

The benefits of domestication include keeping the same tax ID (EIN), the same company structure, and with some states also the original date of formation. The disadvantage is cost and relative complexity of the process, compared to such alternatives as foreign qualification.

The Process

To change the domicile a company must first be in good standing with the original state of registration. If the company is not in good standing you need to first bring it to good standing by completing the necessary filings and paying all the fees and fines that have accumulated, or go through the process of reinstatement if it was administratively dissolved.

There are several steps necessary to complete domestication, and they vary from state to state. Typically, the first step after making sure your company is in good standing would be to obtain certified copy of articles and a certificate of good standing from the original state of registration. Then, Articles of Domestication are drafted and filed with the new state. Third step includes dissolution of the entity in the old state, and submitting confirmation of dissolution with the state of domestication.

Most states (both original and destination states) have various additional filing requirements, such as publications, initial list and statements of information filings, etc, before the process of domestication is completed. In addition to this IRS should be notified of the change, and various licenses and permits obtained from the new state of domicile.

States Supporting Domestication

Following states support domestication in one form or another (please note that some states allow domestication of corporations ONLY, and in a few cases statutes of one states do not permit domestication in another, e.g. New York to California and vice versa):

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