I recently saw a news report – Tens of thousands of New Yorkers are moving to Florida during COVID pandemic. With my New York roots, this story certainly caught my attention. The article states that more than 33,500 New Yorkers have moved to Florida in the last 10 months, according to the Florida Department of Highway Safety and Motor Vehicles. These people are moving to Florida to take advantage of the lower cost of living, lower taxes, and to start new businesses. For those with existing business, there are some legal issues when relocating your business to Florida.
Relocating Your Business
As I help small business owners, the purpose of this blog is to discuss moving your LLC to Florida. Accordingly, Florida law allows an LLC that was formed in another state to relocate to Florida through conversion. Basically, conversion is a legal process that changes the LLC’s governing law from the original state’s law to Florida law. At the end of the day, it will be like your business was originally formed in Florida. The conversion process is not overly complicated. However, it must be done right. The conversion process is detailed in the Florida Revised Limited Liability Company Act. The process requires a plan of conversion, articles of conversion, and other legal filings and documents. It is your best interest to get help from an experienced attorney to help with your conversion.
New York LLCs – Not so Fast
Sounds simple, right? But guess what? There is bad news for New York LLCs moving to Florida. To be eligible for conversion, your home state must have laws that allow for such a conversion. New York does not. Consequently, New York business owners must explore other solutions. Options may include:
- Dissolving the New York LLC and forming a new one in Florida
- Do nothing in New York but register to do business in Florida
- Merge with an existing Florida business
I suggest that you consult with your New York attorney to discuss the options. I would be happy to talk with you and your attorney to give you a Florida viewpoint.
Regardless of which state you are coming from and their laws allowing conversion, you must comply with Florida laws to legally operate your business. Please call me to discuss the best plan for relocating your business to Florida.
This Hot Deal is promoted by Palm Beach North Chamber of Commerce, Inc..