Moving Your Business from One State to the Next

Relocating your business from one state to another may raise EIN (or Tax ID) retention issues.

Are you a business owner who has recently moved to a new state?

When moving your business, you may wish to keep the same EIN for a variety of reasons. Some businesses wish to be able to keep the same bank accounts, simplify their taxes, avoid issuing multiple W9s, maintain the same business structure, or keep the same original date of formation.

A lot of times, depending on the situation, relocating a business is done through merger or conversion at the state level. The IRS will allow you to reassign a historic EIN to a newly formed company under certain circumstances. In some states, the proper procedure for moving your business is referred to as a domestication. You can change the domicile from any state, but only to states that support domestication. With domestication, you may be able to keep the same original date of formation which is particularly valuable to some business owners.

The best approach here depends on a number of features relating to the state you’re leaving and the state you’ve moved to. It’s important to determine whether either or both states have domestication or conversion statutes.

To find out what is best for you, contact our business lawyers here.