Depending on your situation and preferences, there are several ways to move a Tennessee LLC to Florida. In this article, we will explain some of the options available and the steps you need to take to successfully move your LLC with different approaches, so read on to learn what you need to know.
Register as a Foreign LLC in Florida
One of the easiest ways to move a Tennessee LLC to Florida is to keep your existing LLC in Tennessee and register it as a foreign (out-of-state) LLC in Florida. This means that your LLC will be recognized as a legal entity in both states, but it will still be governed by the laws of Tennessee. To do this, you will need to apply with the Florida Department of State, provide a certificate of good standing from the Tennessee Secretary of State, and register with the Florida Department of Revenue.
With this method, you can keep your existing name, EIN, bank accounts, contracts, and other business assets in Tennessee, you can continue to do business in both states without having to dissolve or merge your LLC, and you can avoid some of the costs and complications of forming a new LLC in Florida.
However, you will have to pay annual fees and taxes in both states, which can be expensive and time-consuming. In addition, you will have to comply with the laws and regulations of both states, which can be overwhelming, and you will have to maintain separate records and reports for each state, which can be tedious and cumbersome.
Dissolve Your LLC in Tennessee and Form a New LLC in Florida
Another way to move a Tennessee LLC to Florida is to dissolve your existing LLC in Tennessee and form a new LLC in Florida. This means that your old LLC will cease to exist, and you will start a new business entity in Florida. To do this, you will need to file articles of termination with the Tennessee Secretary of State, settle any debts and obligations of your LLC, and distribute any remaining assets among the members. Then, you will need to file articles of organization with the Florida Department of State, appoint a registered agent, obtain an EIN, register with the Florida Department of Revenue, open a new bank account for your LLC, and transfer your funds from your old account. Finally, you will need to update your contracts, licenses, permits, insurance, and other business documents with your new name and address.
With this method, you can avoid paying fees and taxes in Tennessee, which can save you money and hassle, and you can simplify your compliance and reporting obligations by following only the laws and regulations of Florida.
However, you will have to deal with the costs and fees of forming a new LLC in Florida, and you will have to obtain a new EIN, bank account, contracts, licenses, permits, insurance, and other business documents for your new LLC, which can be time-consuming and complicated. In addition, you will have to notify your customers, suppliers, creditors, employees, and other stakeholders of your change of state, which can be disruptive and confusing.
Merge Your LLC in Tennessee with a New LLC in Florida
A third way to move a Tennessee LLC to Florida is to merge your existing company with a new LLC in Florida. This means that you will create a new LLC in Florida and transfer all the assets and liabilities of your old LLC to the new one. The old LLC will then be dissolved and the new one will continue as the surviving entity.
With this method, you can avoid some of the costs and complications of dissolving your old LLC and forming a new one separately, and you can retain some continuity and recognition for your business by keeping some aspects of your old name or identity. In addition, this method allows you to streamline your transition process by transferring all your assets and liabilities at once.
However, you will still have to comply with the laws and regulations of both states, as well as pay taxes in both states, until the merger is completed.
Domesticate Your LLC in Florida
Another way to move a Tennessee LLC to Florida is to domesticate your existing LLC in Florida. This means that you will change your home state from Tennessee to Florida without creating or dissolving any entity. Your LLC will continue as the same legal entity, but it will be governed by the laws of Florida.
With this method, you can avoid forming a new entity or doing a merger, saving you money and hassle, and keeping your existing name, EIN, bank accounts, contracts, and other business assets. In addition, you can simplify your compliance and reporting obligations by following only the laws and regulations of Florida.
However, the process of domesticating an LLC can be complex, as there are legal details you will need to consider. That is why working with an experienced attorney who can help you navigate the process is vital.
How to Choose the Best Method to Move a Tennessee LLC to Florida
As you can see, there are many ways to move an LLC from Tennessee to Florida, each with its advantages and disadvantages. The best way for you will depend on your specific situation and goals. When choosing a method for your company, you should consider factors such as:
- The cost and time involved in each method.
- The tax and legal implications of each method.
- The impact on your business operations and reputation of each method.
- The plans and prospects of your business in each state.
To make an informed decision, you should consult with an experienced attorney who can help you evaluate the pros and cons of each method, prepare, and file the necessary documents, and handle any issues or complications that may arise along the way.
That is where we come in.
Are you ready to take your LLC to its new home in the Sunshine State? Get in touch with Jurado & Associates, P.A. today! You can email us at [email protected] or you can call us or WhatsApp us at +1 (305) 921-0976.