By Jennifer Reuting, author of Limited Liability Companies for Dummies™
I have an LLC in Missouri. Can I move it to Florida or Delaware? If so, are there tax advantages?
The decision to redomicile your current Limited Liability Company from one state to another is one that should be made only after extensive review of the tax laws and how they affect your particular business. The simple answer is, yes. If you have an LLC in one state you can move or redomicile it to another state with greater tax advantages. However, if your LLC is subject to pass-through taxation, then domiciling (or redomiciling) will be of no benefit to you. With pass-through taxation, your company profits are allocated to the partners then paid as personal income to the state or states in which you and your partners live.
Another major issue to consider it that there have been changes recently in states that were once considered superior states in which to form corporations and LLC's. For instance, Nevada's tax laws recently have changed so radically that MyLLC.com no longer recommends filing any business entity there. It is imperative that you consult your tax adviser prior to making any decisions regarding redomiciling your LLC. Many of these changes are not only complicated but they also contain long term consequences as your companies gross revenue increases. Just be certain that you make a well-informed decision prior to proceeding.
