Can you move a Maryland LLC to Florida? The answer is yes. In fact, it happens more often than you would think. Maryland is a great state to live in; however, many Marylanders choose to move to Florida permanently to enjoy its sunny weather and friendly business environment. If you are a business owner who wants to relocate to Florida, you may be wondering how to bring your LLC with you. The good news is that there is a simple and convenient way to transfer your LLC from Maryland to Florida. It is called a statutory conversion.
A statutory conversion is a legal process that allows you to change your LLC’s formation state without dissolving it or creating a new one. It means that your LLC will keep its name, identity, history, and assets while becoming a Florida-based entity. A statutory conversion also helps you avoid the hassle of manually closing your accounts, canceling your contracts and transferring your assets.
What Happens in a Statutory Conversion?
A statutory conversion is a convenient way to move your LLC from Maryland to Florida. You do not have to dissolve your old LLC or form a new one in Florida. You just have to change your LLC’s formation state to Florida. This way, your business will continue to operate as usual, without any interruptions or disruptions. Your business will keep its EIN, its management style, and any property rights that it had in Maryland. The only difference is that your LLC will be treated as if it was a Florida LLC from the beginning.
However, you may have to change your business name if it is already taken by another business in Florida. To avoid this problem, we recommend that you do a name search on the Florida Division of Corporation’s records database before you decide to convert your LLC. You can also reserve a name for 120 days if you find one that you like and is available. You can do this online or by mail.
The first step you need to take to move a Maryland LLC to Florida using a statutory conversion is to prepare a plan of conversion. This is a document that essentially explains how your business will be transferred to Florida. You need to get the approval of all the owners of the LLC (also known as members), and they must sign the plan of conversion. After that, you need to draft and file the required documents with the appropriate state agencies in both Maryland and Florida. You need to follow the conversion statutes of both states carefully to avoid any mistakes or delays. Mistakes in the conversion process can be astonishingly expensive and time-consuming.
How Does Moving My LLC from Maryland to Florida Affect My Business?
Moving your LLC from Maryland to Florida through a statutory conversion will not cause any major changes to your business. You do not have to close your Maryland LLC and start a new one in Florida, nor do you have to deal with any interruptions. Your original founding documents are replaced by your Florida Articles of Organization without any delay. Your business keeps its EIN, real estate or property rights, and ownership structure. However, this also applies to any liabilities or lawsuits against your Maryland LLC. They will follow your business to Florida as well, so this is something you need to keep in mind.
Do You Need to Move a Maryland LLC to Florida? Work with an Attorney
Moving your LLC from Maryland to Florida with a statutory conversion can be a great way to enjoy the benefits of being a Florida-based business. However, you need to be careful and avoid mistakes during the conversion process. Otherwise, you could face serious consequences, such as losing your liability protection, scaring away potential investors, or even having to liquidate your company.
That is why you need the help of an experienced business conversion attorney who can guide you through the process and make sure everything goes smoothly. Our firm has helped many LLCs from different states and industries convert into Florida LLCs. We know how to handle the legal requirements of both Maryland and Florida and how to protect your interests and assets during and after the move.
If you are ready to leave behind the cold weather and high taxes of Maryland and move to the sunny and business-friendly state of Florida, do not hesitate to contact us today. You can email us at [email protected] or you can call us or WhatsApp us at +1 (305) 921-0976.
