Relocating Business to Texas
The most commonly cited reasons that drive businesses to relocate and move to another state are increasing regulatory and tax burdens, high real estate prices and cost of living, as well as a dwindling talent pool and the need for a skilled workforce. For some business owners, relocation is an attempt to reach new markets or enjoy a better quality of life with access to recreational opportunities, top-tier education, and health care.
Whether motivated by lower operation costs or state incentives and grants, here’s a brief guide on how to transition a sole proprietorship, LLC, or business to a new state.
Relocating your business as a Sole Proprietorship
Generally speaking, the process of moving a sole proprietorship or partnership to another state is simple and straightforward. After canceling local business licenses or permits, you’ll need to check whether the new location requires a business license for sole proprietors or not. If you have a “Doing Business As” (DBA) license, you will need to withdraw the assumed name from your Secretary of State’s office and apply for one in your new location.
Alert the IRS about your relocation to another state so they may update your business address on your Federal Tax ID or EIN.
Moving a Limited Liability Companies (LLC) or Corporation
LLCs and corporations must register with the new location. There are several options for this process:
- Dissolve the corporation/LLC in the old state and establish a new one
- Register as a foreign LLC/corporation
- Register a new LLC or corporation and merge your previous business into your new one
- Convert your foreign corporation to a filing entity
There are different tax repercussions, legal implications, and expense considerations among these options. The best approach will depend on:
- The business climate and laws you are moving to
- Local compliance obligations
- The type of business you are operating
Tools and Guidance for Moving Your Business to Texas
Thinking of relocating your LLC or enterprise to Texas? There are many reasons why Texas is best for business. The Lone Star State is the perfect platform for businesses and corporations of all sizes. Favorable tax laws, state incentives, low cost of living, excellent infrastructure, and a talented workforce make Texas an attractive location for reaching your business potential.
Visit https://businessintexas.com/why-texas/small-business-innovation/ and review the Governor’s small business handbook.
Industry-leading businesses across all sectors are flourishing in the great state of Texas. Whether you are looking to expand your company or start from scratch, TxEDC can provide guidance and services for moving your business to Texas. We have the resources, connections, and knowledge to empower you when selecting the right location in Texas for your industry and target demographic.
Explore our informative guide on Texas regions for business and sign up for our E-News for the latest announcements and information.