If you’re a LLC business owner moving to Idaho, you may want to keep your LLC rather than dissolving it and forming a new one. In order to do this, you’ll need to domesticate your business in Idaho.
The process of “domestication” refers to moving your Limited Liability Company (LLC) from the state of its incorporation to a new state.
The benefit of domestication, as opposed to dissolving your LLC and forming an entirely new one in Idaho, is that your business will keep its Employer Identification Number (EIN) and continues to be treated the same way for tax purposes. Domestication also avoids disrupting business operations, avoids the need for the LLC to open new bank accounts, and allows the LLC to continue using its same contracts.
To domesticate your LLC to Idaho, you must complete 4 steps:
- Complete a Statement of Domestication pursuant to Idaho Code Section 30-22-505;
- File a Certificate of Organization;
- File domestication documents in both states; and
- Pay the fees.
Each state’s requirements differ, so it’s important to contact your attorney to ensure you’re complying with each necessary step.
Note that domestication of your LLC may not always be the best practice for your business depending on your goals. For example, if you plan to continue to do business in the original state as well as in Idaho, then you may be more interested in filing as a foreign LLC as opposed to dissolving your LLC in its original state.
Domesticating your LLC can have many benefits, but it also can get complicated. Contact Smith + Malek if you need guidance on what is best for you and your company, and we will help you reach your goals.