Hey everyone, I could use some perspective from anyone who has moved their business across state lines.
I’m currently running an LLC registered in Illinois, but I’m in the middle of relocating my entire operation to Texas. The more I look into it, the more conflicting advice I find. A lot of the general how to guides online suggest just dissolving the Illinois entity and starting a brand new one in Texas.
Honestly, that sounds like a nightmare for my business continuity. I’ve spent years building up this company’s history, and the idea of losing my original EIN, having to redo all my banking/merchant accounts, and updating every single vendor contract from scratch is stressing me out.
I’ve heard there’s a way to do a conversion or domestication where the business basically just changes its home state without technically dying and restarting, but I’m not sure how messy that process actually is in reality. Has anyone here actually pulled this off between Illinois and Texas specifically?
I really want to keep my tax classification and EIN exactly as they are. Does the IRS/SOS actually play nice with this, or am I better off just biting the bullet and starting over? Just trying to figure out if this is a standard move or if I'm walking into a compliance trap.
Appreciate any insight or lessons learned from people who have been through the relocation ringer. Thanks!
Moving my IL LLC to Texas, is a direct conversion actually possible or a total headache?
byu/beckyboo600 intax
Posted by beckyboo600
1 Comment
Texas actually makes this pretty straightforward with Form 647 and Form 205. The trick is filing them as a conversion package so the state sees it as one continuous entity. It costs about $600 in fees, but it saves you the nightmare of re-opening bank accounts. Just make sure you have a signed Plan of Conversion ready before you submit the paperwork.