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Is it possible to change the state an LLC is maintained in once it is formed?

California |

I am currently a resident of CA and am forming an LLC for a business I am starting. If I form the LLC in CA and then decide to move (both myself and the business) elsewhere, can I change the state I register my LLC with and is that very involved? Or is it best to register the LLC in Delaware or Nevada and then register as a foreign entity in CA and then do the same if I move to another state down the road?

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Attorney answers 1


No. There are no "Federal" LLC's so each state rmakes their own rules. You can form a company in another state and register as a foreign company in many states. There are disadvantages if you get sued in that state you may end up litigating in a state that is not where you live. Taxation may also be an issue as well as costs to maintain the company. I generally suggest that you form the company in the state that you operate. It is simple and usually costs less than $1,000 to have it professionally formed or you can do it yourself for less. Just remember it is call a "legal entity" for a reason so it pays to have it formed properly.