If you're moving to a new state with no intention of going back to California, one of the best options is to start a new LLC / S Corp in the new state and close down your LLC / S Corp in California.
If you will to remain with Collective when you move (given the new state is supported by Collective), we'll help for the most part. However, for some parts you'll need to work with a lawyer. Here's what the process looks like.
1. A new LLC / S Corp in the new state
We will help you start a new LLC / S Corp in the state you're moving (given the new state is supported by Collective). The process will include;
- Filing an LLC
- Operating Agreement
- New EIN
- Business license (DIY or via a partner)
- Opening a new business bank account
- Initial contribution
- S Corp election
Please note, there will be some related costs i.e fees charged by the city, state or our partners.
2. Closing down your LLC / S Corp in California
While we help you start your new business in your new state, you will want to close down your LLC / S Corp in California. We'll help for the most part (especially financials), however please note that closing down a business is not in the scope of services and we recommend that you work with a lawyer for the legal requirements.
Please refer this practical guide: Close down your California LLC / S Corp.
3. Moving / updating your accounts
In most cases we can use the same QuickBooks Online account – because we can use various IRS codes to “consolidate” your businesses. So when the new bank account gets set up (for your new LLC), we’ll help you link it up to the books. As you move expenses over you’ll be able to close down the old bank account, but your accounting records can be consistent.
Unfortunately this can’t be combined with your old payroll account. We can help you close down the old account and, just like when you started your first LLC/S Corp, you’ll set up a new Gusto account and we’ll help link it up with your QBO account.
The year of the transition will be a little hectic, since we’ll have to file two business returns. As long as you continue with Collective, however, your tax team will make sure to file both those returns. The old company return we will file as a “Final” return, to let the IRS and state agencies know to close down those tax accounts.