Steps to Move an LLC to Texas
If you plan moving LLC to Texas that has been formed in another state to Texas then there are several benefits that the LLC will enjoy. The LLC will be able to take advantage of the favourable business laws and tax structure of the state. Let’s take a look at the options you have.
The Registration Options
It is important to identify, how you would want to register your business identity. There are 3 options to choose from:
- Converting a Foreign LLC to a Texas Filing Entity: If your business is registered in another state or is considered to be a foreign entity then what are your options? One of the options is to “re-domesticate” or convert the foreign LLC to a Texas LLC. You can opt for this by adopting a “plan of conversion” that complies with Texas Business Organizations Code BOC §10.103. In order to facilitate moving LLC to Texas using this option, you will be required to file the following documents with the Texas secretary of state:
- Certificate of Conversion pursuant to Texas Business Organizations Code-BOC § 10.154
- Certificate of formation for the converted Texas entity pursuant to 2005 Texas Business Organizations Code, § 101.051
- Certificate of account status from the Texas Comptroller of Public Accounts that indicates that the converting business entity is in good standing
- Register as a Foreign LLC: There is another option for moving LLC to Texas and that is to register your business as a Foreign LLC in Texas pursuant to Chapter 112 of the Business & Commerce Code. This option will help you continue the LLC in the state it was originally registered as well as Texas. This also means that you will be required to file annual reports or public information reports in both Texas and your home state. If you are planning to register as a foreign LLC then you will be required to file the following documents with the Secretary of State:
- Application for Registration of a Foreign Limited Liability Company pursuant to 2005 Texas Business Organizations Code, § 101.462
- Notification Statement for “out of state” business entities pursuant to Chapter 112, Business & Commerce Code
- Dissolve home LLC and Form New LLC in Texas: If your home state doesn’t allow domestication or conversion, moving LLC to Texas is one of the best options. In such a scenario, you will be required to apply for a new Tax ID number in Texas. The formation of the new LLC will be governed by Title 3, chapter 101 of the Texas Business Organizations Code (BOC). There are different types of documents that you will be required to file with the Texas Secretary of the state to initiate new LLC formation and they are:
- You will have to file a “Certificate of Formation” pursuant to Titles 1 and 2 of the Texas Business Organizations Code (BOC).
- Registration of Business Name
- State Business License Application
The documents that are required to be submitted can be mailed, faxed, or hand delivered to the office of the Secretary of State. Depending on the option you choose, IncParadise can provide guidance and services for moving LLC to Texas.
We can help you to move Your LLC to Texas!