Big brand companies like Caterpillar and Hewlett Packard are moving their global headquarters to Texas, along with a slew of other companies hoping to seek refuge in the Texan tax haven. High taxes and elevated business costs are no longer acceptable in a post-pandemic world. Small, startup, and mid-size companies are following suit, hoping to take advantage of what the Lone Star State offers its corporate residents. This guide covers what you need to know about moving your LLC to Texas.
At the Curley Law Firm, we’ve helped our fair share of clients take the big step of moving their LLCs to Texas from another state. Even seasoned business owners benefit from the input of a legal professional—like Adam Curley—who will help protect your investment.
Benefits of Moving Your LLC to Texas
So, why are companies packing up and moving across state lines? Here are some of the reasons:
- The Tax Foundation ranks Texas 14th in the nation in its 2022 State Business Tax Climate Index. California, by contrast, is in 48th place for its business tax structure. In Texas, companies don’t have to pay corporate income taxes but instead pay gross receipt taxes.
- Texas had the second-largest gross state product (GSP) in 2021. The Texas Comptroller reports that in 2021, Texas was second to only California in terms of GSP (the state equivalent of GDP), making it an excellent choice to set up shop.
- Texas has streamlined and lean state regulations. For example, Texas doesn’t make its LLCs pay annual registration fees. It also has other business-friendly laws to encourage—not hinder—growth in its state.
Ready to move your LLC to Texas? Read on to learn about your options for doing so.
Options for Moving Your LLC to Texas
If you want to move your LLC to Texas, you should know that there are a couple of ways for you to do this:
- Transferring (or domesticating) your out-of-state LLC to Texas;
- Forming a Texas LLC and merging it with your out-of-state one;
- Forming a Texas LLC and dissolving your current LLC; or
- Merging with an existing Texas LLC.
To figure out what option is best for your situation, here are questions you can ask yourself:
- Do you want to merge your foreign (meaning, out-of-state) LLC with an existing Texas LLC?
- Do you want to form a new LLC in Texas or keep your current one and move it to Texas?
- What obligations or contracts does your current LLC have with other companies?
- Is your LLC’s name available in Texas?
Talk to an experienced business attorney at the Curley Law Firm. We can walk you through your existing business obligations and future business plans should you move your LLC to Texas. The firm helps entrepreneurs develop business strategies that are efficient and forward-thinking.
How to Transfer Your LLC to Texas
Transferring your existing LLC to Texas first involves registering with the Texas Secretary of State. Most companies that “transact business” in Texas need to complete the registration or domestication process.
Just because your business is registered in another state does not mean it automatically meets the naming or other requirements of Texas. If an existing Texas LLC uses the same or similar name to your company, you likely won’t be able to register your LLC in Texas without changing your LLC’s name. You can do this by formally changing its name or getting permission to use an assumed or fictitious name.
Moving states with an LLC requires more than finding the perfect office space. We can help you understand and meet the requirements to transfer your LLC to Texas.
Other Considerations When Moving My LLC to Texas
Registering your LLC with the Texas Secretary of State is just part of the process of moving your LLC to Texas. After all, you must ensure that the move doesn’t interfere with your contracts, taxes, or other aspects of your business operations.
Changing states with your LLC involves an expert eye and careful consideration. For instance, you must register with appropriate Texas and federal financial agencies, like the Texas Comptroller and the IRS.
Plus, you have to make sure that your business has the necessary business permits and licenses to operate legally in Texas. For example, to run a business in the air conditioning and refrigeration sector, you must register for a contractor license with the Air Conditioning and Refrigeration Program.
Keep in mind that laws and rules change. We learned from 2020 and beyond that things can change seemingly overnight, and it’s best to do research before taking the leap.
The Curley Law Firm, PLLC – We Can Help You With Moving Your LLC to Texas
Are you looking to merge your LLC with an existing Texas LLC? Want to transfer your LLC—and its contracts—to Texas? We can help you in any situation where your LLC is moving states. There’s no substitute for the targeted advice of a legal professional. An experienced business attorney can evaluate your situation and help you understand the pros and cons of relocating your company. Plus, they can guide you through the steps you need to take to either transfer or outright move your business.
Adam Curley brings years of big law experience to the table. He lives and works in the Heights, so he understands the area and what businesses need to do to set up shop in Texas. Our firm is here to support you. Call us today at 832-225-3448 or contact us online.