If you’re about to move your business you might appreciate a few tips that moving a business can often be more complicated than moving home.
You could be moving to save money on your lease or to move to bigger premises. Whatever your reason, you need to make sure you notify the right people of your upcoming move. You will also need to make changes to your business address and any documents you send out.
1. Who You Need to Contact
Before you move, be sure to contact the appropriate federal, state, and local agencies. You will need to tell them when you’re moving your business as well as where you’re moving to. Also, you’ll have to fill out a change of address form for the post office.
You will also need to make a list of every agency you do business with, whether you’re working with state, local, or federal agencies. Make sure you contact all of them as soon as you can. The sooner you contact them the less you’ll have to do after you’ve moved.
If you are moving your business out of state you will need to contact the state’s business division where your business was originally registered. You will also be required to get in touch with your state’s taxing authority. This will ensure you stop paying them taxes.
2. Moving a Business to Your Home
If you plan to move your business into your home, you’ll need to tell your locality. That’s because you might learn that there are some zoning restrictions. These restrictions define how property in specific zones can be used.
If there is a zoning restriction you might need to ask for a variance before moving your business. A variance is a type of request that, if granted, will allow you to use your home or land in a way that is not ordinarily permitted.
When you move your business to your home be sure to make the space separate. This will allow you to deduct any business costs that are associated with your business space. However, keep in mind that the space you designate for your business can only be used for business purposes. Also, you must use it regularly.
3. Changing Your Business’s Name
Let’s imagine you run a gardening business in Florida called “Frank’s Florida Gardens.” If you’re planning on moving your business to Minnesota, for example, you will need to make a change to the name. However, changing the name of your business isn’t always easy. For instance, you’ll need to make sure to change every document that has your business name on it.
Also, you must inform the IRS about the name change. What’s more, you might even need to re-register your business in your new state as well as in your current one.
4. Deducting Your Moving Expenses
Any costs that are associated with moving your business are tax-deductible. This includes any cost that’s associated with moving computers, equipment, inventory, supplies, and anything else that has to do with moving your business.
Additionally, if you have to move your residence because you’re moving your business, your expenses for that could be deductible. However, this only applies if those expenses are directly related to your business move. You will also need to make sure that your expenses meet the time and distance tests set out by the IRS.
5. State-to-State Moves
Corporations, partnerships, and LLC’s are all registered with a state. Therefore, if you’re moving your business to another state, you will need to take note of a few things. You will have to understand the regulations that the state you’re moving to has. You’ll also need to know about what types of businesses that state allows you to run.
You might wish to keep your businesses registration in your current state and add it to the new state. Or you could close out the old registration.
On the other hand, if your LLC has a few members, things could be a bit more complicated. You might therefore wish to consider merging the old LLC into a new one before moving your business.
Also, make sure you talk with both your attorney and your tax adviser about your move. You will need to ensure you’re taking all the legal and tax issues into account.
6. Notifying Your Registered Agent
A registered agent is the company or individual who accepts legal documents on your behalf. If you plan on moving your business you will need to tell your registered agent. They might work in several different states, but wherever they work you’ll need them to change your address. This is the address that is found on all your legal documents.
Keep These Tips in Mind When Moving Your Business
If you keep all of the above points in mind when moving your business chances are you’ll move it correctly. Once you have completed all the legal formalities, you can then find a moving company that will be happy to help you.