Moving your New York or New Jersey business from one state to another creates a host of practical and legal concerns, but it is possible. If the new state is more business-friendly, the move may actually benefit in the long run.
The process of relocating your New York or New Jersey business largely depends on its corporate structure. As with most other business tasks, the sole proprietorship is the most straightforward, while corporations pose the biggest headache.
Sole proprietorships and partnerships: Business owners only need to file a “Doing Business As” (DBA) registration in the new state and terminate the registration in the old state. Depending on the type of business you run, you may also need to obtain licenses and permits before you can become operational in the new state.
Limited liability corporations: Owners of an LLC have several options. The first option is to continue the existing LLC in the new state by registering as a foreign LLC. The second is to liquidate the existing LLC and form a new LLC in the new state. The third choice is to form an LLC in the new state and merge the existing business into it.
Corporations: C and S corps also have several ways to relocate, much like LLCs. However, shareholders must consent to the decision if it involves liquidation, merger or other material changes impacting shareholders. The options include registering as a foreign corporation in the new state; dissolving the old corporation and forming a new one; and reorganizing by merging the existing corporation into a corporation in new state.
Of course, registering in the new state is not the only legal and business concern. Business owners should carefully evaluate the costs of relocating, including moving staff, supplies, inventory and equipment, as well as the potential tax implications. There is also the need to look at the agreements and contracts the business has with its owners, management, employees and third parties, which may be affected by the move. To fully evaluate the range of issues you may face, it is best to consult with an experienced business attorney who can guide you through the process.
Don’t Overlook the Importance of Business License Management
If you operate a business without the proper license, you risk fines, insurance issues, reputational harm, and even business closure. Even innocent mistakes, like forgetting to renew a license, can have significant consequences, such as losing your lawsuit for payment of services that are unlicensed, which makes it imperative to have business license management procedures […]
Failing to Comply With NJ Rent Control Exemption May Prove Costly
What Developers Need to Know About New Jersey’s Rent Control Exemption Law to Ensure Entitlement to Exemption for Newly Constructed Multi-family Housing. A property owner in Jersey City is facing a $400 million federal class action lawsuit alleging that the landlord did not follow the procedural steps required to be eligible for exemption from local […]
Crypto Securities Law: When Tokens Become Investment Contracts
The application of traditional federal securities laws to crypto assets continues to evolve. In some cases, the Securities and Exchange Commission (SEC) considers tokens and other digital assets to be securities. This makes them subject to federal securities law, including the Securities Act of 1933 and the Securities Exchange Act of 1934. This classification has […]
The Due Diligence Process for NY Condominiums and Cooperatives
While the New York City real estate market can be extremely competitive, moving too quickly often backfires. Before purchasing a condominium or cooperative in New York City, it is important to do you homework. Purchasing property in NYC can involve a dizzying number of legal issues. These include condo and co-op rules, rent restrictions, and […]
Smart Contract Legal Issues: Drafting Agreements for Blockchain
Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Are Stay Interviews the Key to Retaining Top Talent?
Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!
