Legal Question in Business Law in California
Moving LLC to CA
I started an LLC in GA, but have since moved to CA. I'm the sole employee. Do I need to move the LLC to California, and if so, how complex is the process?
3 Answers from Attorneys
Re: Moving LLC to CA
You'll have to register the LLC with the state in order to do business in and from CA. Or, you could form a new LLC here. Either way, feel free to contact me for legal help.
Re: Moving LLC to CA
You have several options, and choosing the best one for you would require knowing more about your business, including whether you'll continue to do business in Georgia, and how much that state charges to keep an LLC franchised there. It would also be useful to know the value to you of having continuity in a single entity, e.g., are there non-assignable licenses, tax benefits, contracts, etc. associated with the existing business?
The possibilities include: (1) keeping the Georgia LLC and qualifying it to do business in California by registering it with the Calif. Secretary of State as a "foreign" LLC, probably the easiest up-front but you'll go on double-reporting and paying annual franchise taxes to both states; (2) forming a new California LLC and merging the Georgia LLC into it; or (3) forming a new California LLC and selling the Georgia LLC's assets to it. A lawyer can tell you HOW to do any of these; an accountant, especially one with tax savvy, can probably best advise you on WHICH to do. There is no one single best-for-all answer.
Re: Moving LLC to CA
I agree with the prior responses, except that I would add that changing to a California corporation (instead of an LLC) would additionally be an option. In any case, you should consult with a CPA and business attorney, and have them assist with this. This is an area of law I practice in, and I can refer you to a CPA, if you don't have one in California.
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