How to Move an LLC to Another State
Moving an LLC to another state typically entails filing for foreign qualification in the new state, while maintaining the original LLC in the home state, which allows the business to operate legally in both locations.
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Last Updated: October 22, 2026
Editor’s note: At this time, ZenBusiness doesn’t assist with domestication or dissolution of LLCs.
Many entrepreneurs enjoy a lot of benefits when they start their own business, and one of those perks is that they can choose where they want to work. Some might even start an LLC in one state and then decide to move to another later on. Thankfully, business owners have options for moving their LLC: they can choose to transfer their LLC from one state to another, establish a foreign business entity, dissolve the current LLC and start a new one in the new state, or merge two existing LLCs in different states.
Sounds a bit complicated, right? This article walks through the different options that LLC owners have to move their business to another state.
Moving an LLC to a New State
An LLC (limited liability company) can be taxed as a corporation, partnership, or sole proprietorship in any state. Because the states have varying personal income and corporate income tax rates, it’s prudent to consult with an accountant to help avoid any potential tax consequences and manage annual reports when moving the business.
The domestication/conversion process is a seamless transition of an LLC’s existing business accounts, credit rating, tax ID information, and previous business relationships from the old state to a new state. To domesticate an LLC into a new state, business owners typically complete the following steps:
Step 1: Acquire a Certificate of Good Standing (Certificate of Status)
The first step to move an LLC to a new state is visiting the Secretary of State’s office in the old state and obtaining a Certificate of Good Standing for the LLC. A Certificate of Good Standing is a one-page document that provides proof of the business entity’s status and lawful compliance. It’s a bit like a stamp of approval from the home state.
Step 2: Apply for domestication
Next, the business owner will need to draft a domestication plan. The owner of a single-member LLC can draft and approve their own plan for domestication, while multi-member LLCs must receive approval from every owner. The paperwork is set by the new state. It is typically articles of conversion or a certificate of conversion, often filed at the same time as the formation document for the new state’s LLC, with the converting entity’s organizing document attached. Articles of dissolution are not part of a domestication filing, and most states do not ask for a certificate of good standing either, so check the new state’s conversion statute and forms before you file.
After the domestication is approved in the new state, your LLC continues as the same entity in its new home state. A domestication or conversion is not a dissolution, and state law generally provides that it does not require the LLC to wind up its affairs, so do not file articles of dissolution in the old state. Where the old state requires a filing at all, it is usually a certificate of transfer or a withdrawal of a foreign registration.
Other Ways to Transfer an LLC to Another State
Register it as a foreign LLC
Foreign registration allows business owners to obtain business licenses and a permanent business address to operate in other states while maintaining residency in the state where their business was originally formed. By registering as a foreign entity, business owners can use the same EIN (Employer Identification Number) and bank accounts, but will pay additional taxes and fees under the laws of each state where the LLC is registered.
To register as a foreign entity, a business owner files an application with the new state and generally includes a recent certificate of existence or good standing from the home state, commonly one issued within the past six months. Some states accept a certified copy of the articles of organization only where the home state does not issue such a certificate. The Certificate of Authority is what the new state issues once it approves the application, not a document you supply with it. The LLC will also be required to maintain separate registered agents for each state where the business operates.
Dissolve an LLC
If a business owner is unable to domesticate their business and they don’t want to conduct business as a foreign entity in the new state, they have the option to dissolve their LLC in their old state and then register their LLC in their new state. Dissolution is the official legal process of closing a business. Typically, business owners need to file Articles of Dissolution with the Secretary of State or other state agency to document the distribution of assets, liabilities, and debts in order to legally dissolve their business. Read more in this dissolution definition guide.
In addition to filing forms with the state, the other steps in dissolving a business include winding down business, selling remaining inventory, notifying creditors, paying off debts, and liquidating any remaining assets. Due to the complicated nature of dissolving a business, it’s wise to use a business attorney to ensure legal guidelines are followed.
Merge LLCs
Most states allow an old LLC to be merged with a new LLC so that the company’s assets and liabilities can be transferred rather than dissolved. While this can be a cost-effective way to move business operations, federal and state tax laws in each state need to be considered. It’s also wise to consult with a tax advisor before proceeding with a merger.
To merge an old LLC with a new one, the owner will typically need to draft Articles of Merger and file them with the Secretary of State or the appropriate state agency in the state. Once the Articles of Merger form is filed, the LLC in the old state dissolves, and its assets and liabilities are merged with those of the LLC in the new state.
Try ZenBusiness
While ZenBusiness can’t help business owners transfer their LLCs to another state, they can help entrepreneurs launch a new LLC. They offer LLC formation services and plenty of other products to help meet lots of different business needs. With help from ZenBusiness’s team of experts, any entrepreneur can start an LLC today for $0 plus state fees. ZenBusiness provides information, live support, and a step-by-step process to form an LLC in any state today. Skip the stress and guesswork and let them do the work.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
Transfer LLC to Another State – FAQs
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Yes, it’s possible to move an LLC from California to another state. LLCs in California pay an $800 minimum annual franchise tax regardless of how much business is conducted in or out of state. If someone no longer needs to operate their business within the state of California, it could be cost-effective to go through the domestication process in the new state, or dissolve the LLC and form a new LLC in the new state.
Interested in other state options? See below to get started:
How to Transfer LLC Ownership in Alaska
How to Transfer LLC Ownership in Alabama
How to Transfer LLC Ownership in Louisiana
How to Transfer LLC Ownership in Illinois
How to Transfer LLC Ownership in Florida
How to Transfer LLC Ownership in Vermont -
There is no limit to how many LLCs a person can have as long as they are distinctly separate businesses. As long as the correct LLC filing and fees are processed for each LLC in each state, having multiple LLCs in multiple states is possible. When operating multiple LLCs in multiple states, the cost of appointing registered agents for each state, state taxes, LLC registration fees, and the varying legal requirements to operate a business within each state must be considered to make a wise choice for the business.
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California had free LLC formations previously, but the cost for LLC formation in California is now $70, while Colorado is offering LLC formation for only $50. Outside of temporary price breaks, Kentucky usually has the lowest state filing fee of $40 compared to the highest filing fee of $520 for Massachusetts. Although LLC formation costs are significantly cheaper in some states, other factors, such as maintenance costs and annual taxes, should be considered as well when starting an LLC.
Business Dissolution by State
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