Do you need to move a New Jersey LLC to Florida? If the answer is yes, we can help you. The first thing you need to know is that you are not alone. Many business owners choose to relocate their LLCs to the Sunshine State for various reasons, such as lower taxes, less regulation, better weather, and more opportunities. However, moving an LLC from New Jersey to Florida is not as simple as packing your bags and driving south. There are legal steps you need to follow to ensure that your LLC remains valid and compliant.
If you wish to move a New Jersey LLC to Florida, you can accomplish this through a corporate transaction called a statutory conversion. However, converting a New Jersey LLC to a Florida LLC can be a challenging task. Jurado & Associates, P.A. offers guidance for a seamless transition, having successfully reorganized multiple businesses into Florida entities.
This article will outline the steps we take when converting a New Jersey LLC to a Florida LLC, as well as potential roadblocks that may arise and how we deal with them. It is essential to satisfy Florida and New Jersey’s statutory requirements for conversion with extreme diligence, as even minor mistakes could have serious repercussions.
The Process of Moving an LLC from New Jersey to Florida
A statutory conversion is a legal method in Florida that allows for the transformation of an LLC registered in a different state into a Florida LLC. In New Jersey, the process for LLCs is known as “domestication”. By undergoing a conversion, a business can change its state of formation without having to be dissolved and started all over again. This allows you to retain contracts, licenses, and other crucial relationships as well as to inherit the original entity’s rights, privileges, assets, and liabilities.
When you move a New Jersey LLC to Florida, the company will be governed by the Florida Revised Limited Liability Company Act. However, if the business has obtained foreign authorization to operate in New Jersey, it must still adhere to the New Jersey Revised Uniform Limited Liability Company Act.
Mistakes during the conversion process can result in the loss of liability protection, discourage potential investors, or even lead to the company’s liquidation, so it is vital to work with a team of experienced business attorneys who understand the statutory conversion process and can help you navigate it smoothly and efficiently.
What Happens to the New Jersey LLC? Is It Dissolved?
No. When converting your New Jersey business to a Florida LLC, you should not dissolve your entity. If the conversion is executed correctly, the company’s status will become “converted out” instead of “active” or “inactive.” Dissolving your LLC will only result in the liquidation of your company, causing it to cease existing and potentially incurring tax liabilities. Although many online articles advise readers to dissolve their LLCs when converting them to Florida LLCs, this is misleading. You should not dissolve your New Jersey LLC unless you intend to close it permanently.
Do I Have to Obtain a New EIN?
While the need to get a new EIN when domesticating a company to Florida depends on the situation, the Internal Revenue Service’s guidance states that LLCs that undergo a statutory conversion but make no other changes can continue to use the same EIN, as long as the company’s continuity is properly maintained throughout the process.
Looking to Move a New Jersey LLC to Florida? We Can Help You
Moving your LLC to Florida from New Jersey can be a great decision for your business; however, the process requires some planning and preparation. You need to weigh the pros and cons of moving your LLC and follow the proper steps to ensure that your LLC remains valid and compliant. Fortunately, you do not have to do this alone.
We are here to make your move as easy and as hassle-free as possible. Whether you need assistance with filing the necessary forms, drafting or reviewing contracts, resolving disputes, or protecting your rights and interests, we are ready to help. We have the experience and expertise to guide you through the process of moving your LLC to Florida and handle any legal issues that may arise along the way.