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How to transfer your business from another state to Nebraska

| Jul 13, 2020 | Business Formation |

When you own an LLC that was organized in your home state, but you are now moving to another state, your LLC must be registered in the new state before you can legally conduct business.  Every state has its own rules when it comes to foreign businesses and domestication.

When a business is formed in one state, but registers to do business in other states, it is considered “foreign”.  This operating method works well if the move to another state is temporary, or if you change locations often.  However, doing so also requires maintaining LLC reporting requirements in each state as well as paying additional taxes. Nebraska does allow registration of foreign entities.

Many states allow what is known as domestication. This means that an LLC is formally transferred from one state to another, but retains the same tax ID, credit rating, and bank accounts.  However, Nebraska is one of the few states that does not allow domestication. In order to move an existing business to the state of Nebraska, it would have to be registered as a foreign entity, and the LLC would need to be maintained in more than one state.  Otherwise, the only other option is to completely form a new business and dissolve the old LLC.

If you have questions regarding any of these processes and how they might affect your business, consult with a business attorney.  He or she can help you develop the best plan of action to ensure continued success and longevity as you relocate your business.