Everybody hates moving. While there’s typically excitement and anticipation for what’s on the other end of the move, the actual process of moving can be stressful and time-consuming. This is especially true when you’re talking about taking a business across state lines. Not only do you have to worry about your own personal moving situation, but you also have to sort through the many complexities that come along with registering a corporation in anther state. But, if you follow the right steps, the move doesn’t have to be as challenging as you may think.
Legal and Financial Considerations
You have to start with the financial considerations; after all, this is the primary reason for an interstate business move. Depending on whether you’re an LLC, corporation, sole proprietorship, or partnership, there’ll be different rules and regulations for your move. It’s best to meet with a lawyer from both your current state and the state you’ll be relocating to in order to get an idea of all of the legal steps you need to take.
Tax implications are also crucial. Even if you assume that you’re following the right protocol, it’s a good idea to re-verify what you know. “State tax administrators are hungry for revenue, and if a business claims to have relocated across state lines, auditors are going to check to see if the company’s operations have actually changed locations,” explains Eric Kroh of Law360.com. It’s important that all operations, facilities, and accounts are closed out in the current state and moved to the new one.
Think through any and all tax liabilities, and ensure that everyone clearly understands what – if anything – will change. You have to think about sales and income tax too. Plan for things like property taxes, credits, exemptions, local tax incentives, payroll requirements, and everything in between.
Practical Aspects of Moving
You also have to consider the practical aspects of moving across state lines. Have you researched and selected an interstate moving company? You need a company that’s going to take care of everything from vehicle transport and utilities transfer to packing, unpacking, and cleaning up. If you elect to save money by choosing a company that’s sub-par, you may end up spending days or weeks tying up loose ends after the actual move.
It’s also important to start the moving process on the home front well in advance. Consider how much time you think it’ll take you to pack, and double it. Moving always takes longer, and there are always personal concerns that lengthen that process.
Top States for Businesses in 2015
In case you’re wondering which states are ideal for business relocations, you can reference this convenient list from CNBC. It ranks the best business states, based on a number of independent and connected factors, such as workforce, cost of doing business, existing infrastructure, quality of life, education, and more.
According to the data, the top five states for 2015 are Minnesota, Texas, Utah, Colorado, and Georgia. The five worst are Louisiana, Alaska, Rhode Island, West Virginia, and Hawaii. For visually inclined people, this map provides a simple overview of the country’s business landscape.
Making the Right Decision
As you can see, there’s a lot to consider when it comes to an interstate move. Not only do you have to think about tax ramifications and labor supply, but you also need to consider the practical aspects of hiring a moving company, unloading, buying new equipment, leasing a new building, and countless personal aspects like buying a home and finding new schools for the kids. However, by planning ahead and working through the logistics far in advance of the move, you can greatly benefit from a move.