Have You Weighed Your Options Properly? Would it be in your best interest to file as a Foreign Entity or as a completely new Florida business?
If you file as a foreign entity, you may end up filing state tax returns in both states. You would not owe income taxes to both states, but you may owe annual fees in both states.
If you form a new LLC or S corporation, the new business can buy the assets of the old to liquidate it, and then you may dissolve the old business, which transfers or merges the assets, liabilities, contracts, etc. to the new business by law. A certificate of transfer is filed to move the entity and dissolve the old one. The process varies by state, although Florida makes the process easy.
Registering an out-of-state business as a foreign entity in Florida is not necessarily cheaper or easier. It may be more expensive and time-consuming. The business would have to pay annual fees in both states, most likely file returns in both states, and maintain a presence/agent in both states. Unless you are truly conducting business in both places, it may not be advantageous for your business to file as a foreign entity in Florida.
Contact us for help deciding what arrangement is best for you. Give us a call (239-774-5100) or email today!
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