Looking to move your LLC to California but not sure where to start? Don’t worry, we’ve got you covered. In this video, we discuss the different methods of moving your LLC to California, focusing on the process known as conversion. We cover the steps involved in conversion, including drafting a plan, obtaining a certificate of good standing, and filing the necessary paperwork with the state. Whether you’re considering dissolving your current LLC or forming a new one in California, we provide all the information you need to make an informed decision. If you have any questions, leave them in the comments. Let us help guide you through the process and make your move to California smooth and hassle-free.
Methods of Moving Your LLC to California
Moving your LLC to California can be a complex process, but there are several methods you can explore to make the transition smooth. In this article, we will discuss three methods: dissolving the LLC and forming a new LLC in California, foreign registering in California, and conversion. Each method has its own requirements and steps, so it’s important to understand them before making a decision.
Dissolving the LLC and forming a new LLC in California
One option for moving your LLC to California is to dissolve the LLC in your home state and form a new LLC in California. This method involves officially closing your existing LLC and starting fresh in California. It requires filing the necessary paperwork to dissolve the LLC in your current state and then filing articles of organization in California to form a new LLC.
Foreign registering in California
Another method is to foreign register your LLC in California while keeping the business running in your home state. This means that your LLC will have a presence in both states. Foreign registering involves registering your existing LLC as a foreign entity in California, which allows you to legally operate your business in the state. You will need to follow California’s foreign registration requirements and pay any applicable fees.
Conversion
Conversion is a state-assisted process of transferring a company from its original formation state to California. This method allows you to re-home your LLC in California without completely dissolving it. Conversion requires drafting a plan of conversion with all members of the LLC and obtaining a certificate of good standing from your home state to show that your LLC is in good standing at the time of conversion. It’s important to note that not all states allow conversion, so you will need to check if your home state permits it.
Understanding Conversion
Definition of conversion
Conversion, as mentioned earlier, is the process of transferring a company from its original formation state to California. It is a state-assisted process that allows you to move your LLC without dissolving it completely. Instead, your LLC is re-homed in California and continues its operations under the laws and regulations of the new state.
Process of conversion
To initiate the process of conversion, you will need to draft a plan of conversion with all members of the LLC. The plan should outline the steps and details of the conversion process. It’s important to involve all members in this process to ensure that everyone is on board and in agreement. Once the plan is finalized, you will need to obtain a certificate of good standing from your home state to show that your LLC is in good standing at the time of conversion.
Drafting a plan of conversion with members
Drafting a plan of conversion is a crucial step in the conversion process. This plan should include details such as the effective date of the conversion, the assets and liabilities being transferred, the rights and interests of the members in the new LLC, and any other relevant information. The plan should be carefully reviewed by all members of the LLC and signed to indicate their agreement.
Obtaining a certificate of good standing from home state
Before filing the necessary documents for conversion in California, you will need to obtain a certificate of good standing from your home state. This certificate serves as proof that your LLC is in good standing and compliant with all applicable laws and regulations. It’s important to note that California only allows conversion if your home state permits it, so you will need to check the conversion requirements and regulations of your state.
Requirements for conversion in California
Once you have drafted the plan of conversion and obtained the certificate of good standing from your home state, you can proceed with the conversion process in California. To do this, you will need to submit your articles of organization with a statement of conversion to the California Secretary of State. These documents will outline the details of the conversion, including the name and address of the LLC, the effective date of the conversion, and any other required information.
Filing the necessary documents
To successfully move your LLC to California, you will need to file the necessary documents with the appropriate authorities. Here are the steps involved in filing the required paperwork:
Submitting articles of organization with statement of conversion to California
The first step is to submit your articles of organization with a statement of conversion to the California Secretary of State. These documents will outline the details of the conversion, including the name and address of the LLC, the effective date of the conversion, and any other required information. Make sure to carefully review and complete the documents, and include all necessary supporting materials.
Contacting the IRS to keep the original EIN (Employer Identification Number)
When moving your LLC to California, you will want to keep your original Employer Identification Number (EIN) issued by the IRS. It’s important to contact the IRS and inform them of your LLC’s relocation to California. The IRS will provide guidance on how to update your LLC’s address and ensure that you can continue using the same EIN for your business.
Using California’s online filing system Biz file
California encourages business owners to use their online filing system called Biz file for submitting the necessary documents. Biz file provides an easy and convenient way to file your articles of organization and statement of conversion. It allows you to complete the filing process online, saving you time and hassle. Make sure to follow the instructions provided by the California Secretary of State’s office when using Biz file.
Alternative methods of filing (mail or in person)
If you prefer not to use California’s online filing system, you have the option to file the necessary documents by mail or in person. You can download the required forms from the California Secretary of State’s website and mail them to the appropriate address. Alternatively, you can visit the Secretary of State’s office in person and submit the documents there. Keep in mind that if you choose to file in person, there may be an additional fee of $15.
Conclusion
Moving your LLC to California can be a complex process, but with the right knowledge and understanding, you can navigate it successfully. In this article, we discussed the three main methods of moving your LLC to California: dissolving the LLC and forming a new one, foreign registering, and conversion. We also explored the process of conversion in detail, including the drafting of a conversion plan and obtaining a certificate of good standing from the home state. Finally, we discussed the steps involved in filing the necessary documents, including using California’s online filing system Biz file. Remember, it’s important to carefully review the requirements and regulations of your state to ensure a smooth transition. If you need further assistance, don’t hesitate to seek professional guidance. Moving your LLC to California is a significant step, and understanding the process is key to a successful move.