Redomestication is usually the most straightforward way to change your LLC's home state, because it moves the entity itself rather than replacing it. If it's available in both states involved, it spares you the work of forming a new company and transferring assets into it.
This article applies to both LLC tier and S Corp tier members. S Corp tier members will want to read "Register as an employer in your new state" closely, since moving states can mean new state payroll tax accounts.
What redomestication is
Redomestication is a statutory transaction that changes your LLC's state of formation. Depending on the state, you may see it called domestication or conversion. The terms are often used interchangeably. What matters is that both states permit the transaction and that each state's filing requirements are met.
Because it reorganizes a single entity rather than creating a second one, there's no new LLC to form and no assets, liabilities, or property to transfer. Your LLC files the required documents with both the old state and the new state, and the transfer takes effect.
In most cases, your records, EIN, and S Corp election continue with the entity. That continuity is the main reason members choose this route.
Why members choose it
Redomestication is a good fit if you plan to stop operating in your current state entirely. After the transfer, you pursue new clients and deliver services in your new state only. You also pay fees, file state returns, and keep your entity in good standing in one state rather than two.
The limitation is availability. Redomestication is permitted in many states but not all, and requirements vary meaningfully between them. Before committing to this path, it's worth consulting a legal professional familiar with the laws in both your current and destination states.
How to know whether you can redomesticate
Most states permit redomestication for LLCs. As of the most recent available guidance, these states generally allow it:
Alaska, Arizona, Arkansas, California*, Colorado, Connecticut, Delaware, District of Columbia, Florida, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin, and Wyoming.
* California domesticates businesses only from states that themselves have domestication provisions.
Georgia is a special case: it allows domestication out of the state but not into it, so it works as an origin state only. If you're moving to Georgia, redomestication generally isn't available and one of the other three options will apply.
State statutes change, so treat this list as a starting point rather than the final word. Some states have no standard form, which means the filing has to be drafted from the state's statute. Before any filing begins, our partner agency researches whether redomestication between your two states is currently available and handles that drafting, so you'll see where you stand before you commit to a path. For advice on the legal and tax consequences in either state, work with an advisor who specializes in multi-state requirements.
Getting started
Because redomestication turns on legal nuance that differs state by state, Collective doesn't handle this filing in-house. We work with our partner agency, Registered Agent Solutions, Inc. (RASI). RASI researches whether redomestication between your old and new state is possible and prepares the forms for filing if it is.
Filing fees apply, and Collective passes those through to you after you approve the quote. A quote typically includes state registration fees, a certificate of good standing or certified copy of your articles from your current state, and late filing penalties where applicable.
To begin, message us through the Message Center in your Collective dashboard.
The redomestication process
- Review and approve the quote. RASI sends a quote covering research, form preparation, and state fees. Nothing moves forward until you approve it.
- Review and sign the forms. Once you approve the quote, RASI prepares the filing documents and sends them to you for review and signature where a signature is required.
- RASI files with both states. They submit the documents to the relevant state agencies on your behalf.
- Receive confirmation. When both states finish processing, RASI confirms that your LLC is registered in the new state and no longer active in the old one. Processing times vary widely by state, and your original quote includes estimated timeframes so you can plan around them.
By default, RASI serves as your registered agent in your new state, and the cost is included in your membership fee. If you'd prefer a different registered agent, tell us when you submit your initial request so we can set that up from the start.
After your filings are processed
Once both states have processed the redomestication, work through the items below that apply to you.
Update your address with the IRS
- Complete the IRS change of business address form (Form 8822-B) and sign it.
- Mail it to the IRS service center for your new state. The correct address depends on where your business is now located, so check the current mailing addresses on IRS.gov before you send it.
If you'd like Collective to prepare and submit this filing for you, let us know and we're happy to help.
Register as an employer in your new state
This step applies if you run payroll, which includes S Corp tier members paying themselves as an owner-employee and any member with employees.
- Collective registers you as an employer in the new state and obtains the state tax IDs you need to run payroll there.
- Your new tax IDs are added in Gusto, the payroll platform Collective uses.
- We close the payroll tax accounts in the state you moved from.
Notify the people who need to know
- Inform your banks, clients, vendors, and any relevant government agencies of your LLC's new state and any changes to your contact information.
- Update your business address on your website, invoices, marketing materials, and anywhere else it appears publicly.
Next steps
To get started, head to the Message Center in your Collective dashboard and tell us your destination state and expected move date. For a comparison of all four relocation options, see Moving States with Your LLC: Your Four Options.
If you have questions specific to your business, reach out to your Collective team. They're here to help.
The information contained in this document is provided for informational purposes only and should not be construed as legal, financial, or tax advice.