Hello! I'll keep this as detail oriented as possible.

    – I'm moving from California to Nevada.

    – I own an LLC established in Cali.

    – I have a bank account linked to it, as well as other processors like Stripe, Wise, Square, etc. I understand that if I dissolve in CA, I'll have to go through the whole process again of setting all these things up under the new business EIN which could be a bit messy and I'm not sure how the taxes will work.

    – My business is going to conventions in different places selling handicrafts. I've done a few conventions in California, but also other states and even countries. I've paid the local taxes in those cities and states per their requirements for event vendors as necessary.

    – It's more common for me to do business outside of California that it is to do business in California as there are many more conventions going on outside of here.

    – I only started this in February of this year so it's fairly new. It's kind of like a hobby tier thing, so I'm unlikely to make more than maybe 50K in a year from it. I heard that if I don't make more than $250K in a year, regardless of whether it is in or out of CA, then I won't have to pay more than the required $800 per year.

    – I heard that NV allows LLC domestication from the outside but Hotel California says you can never leave.

    – I understand that there are costs associated with any option I select that involves leaving Cali (gotta pay up the $800 before I bail out) and then re-establishing the LLC in NV (regardless of the manner I select).

    – I've heard I can create the LLC in Nevada then do a merge from the CA one that breaks it there but allows me to retain my EIN and bank accounts, saving me the hassle of having to redo them all over again.

    – I was told an option would be asking a trusted friend or family member to allow me to register my LLC in their address (since I can't use a PO box) to allow me to keep the LLC in California and avoid hassle all together (though I'd still have to pay the yearly $800). If this is possible I could pay them like a hundred bucks per year for the trouble and give them a stack of large envelopes and a book of stamps and any letters that go to them for my business I can just ask them to put them in the big envelope and just send them to me. However, I also want to be sure they won't get dragged into any serious trouble or become liable for anything if something weird happens to my business (Obviously I don't plan for anything weird to happen since I just sell handicrafts.)

    Assuming everything I've said is correct, what's the most painless option for me and how can I get it all started? Based on what I think is correct, the merger is probably the best one long term. I'll have to rip the band aid and pay the 800 to CA on top of the fees associated with the merger and setting up the NV LLC but at least I won't owe the 800 a year to CA after that. If this is wrong (or there is a better option), please do let me know. Thanks.

    LLC from Nevada to California (or…)
    byu/ImpressiveArcher7186 intax



    Posted by ImpressiveArcher7186

    2 Comments

    1. Safe-Jeweler-8483 on

      I am not sure why you have random bullet points that doesn’t paint a story.

      If you are moving places, you can still keep the same LLC, you are just moving the articles of incorporation from one state to another state, unless you want to fully dissolve the LLC and start a new LLC with a different EIN.

      I think you should consider talk to a lawyer for better advice.

    2. Honestly, if you are permanently physically moving out of Cali and don’t have any reason to keep your business registered in Cali(licensing, physical presence, employees etc) I would just setup a brand new entity in Nevada and dissolve your old Cali entity. Long term it just makes more sense. If you keep your cali entity, you will always have a $800/yr LLC renewal + a $250 biannual statement of information requirement to Cali. Setting up new payment vendors and bank accounts is like 3hrs tops of work for a new business and you don’t need to deal with the hassle of worrying about cali trying to get you for sales tax/income tax/etc whatever comes down the road.

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