do I need to relocate my business and register in a new state?
June 10, 2014 12:51 PM   Subscribe

Currently I live with family in Hew Hampshire and have registered an LLC this year here in NH at my parents' address. I'm moving just south of the border in MA, only 20 minutes away. Do I need to relocate my business? Seems like it costs more to register a business in MA. Tax-wise I believe it will be the same because NH based software businesses operating in MA will be taxed a sales tax starting this year.
posted by spacefire to Work & Money (4 answers total)
I am neither a lawyer, nor an accountant.

If your parents have not moved, and are amenable to it, I don't see a reason to relocate the business address.

As for tax and legal ramifications, I'd speak to a CPA, and a lawyer, respectively, who are licensed in both states (try a close-to-the-border city like Nashua or Lowell).
posted by tckma at 12:58 PM on June 10, 2014 [1 favorite]

You need to determine whether you're "doing business" in MA, because if you are, your LLC has to be qualified to do business in MA one way or another (explained below.)

The problem is that the concept of "doing business" in a locale is nebulous and definitely needs to be sorted out by a CPA or a lawyer (hopefully someone will come along to let you know which is better.) But, basically, if it turns out that you are, in fact, doing business in MA when you live there there's a few things you can do:

-Dissolve your NH LLC and start a new MA LLC
-Qualify for NH LLC to do business in MA (all states allow for this.)
-Redomesticate your NH LLC to MA (only certain states allow for this.)

The latter two will let you keep your EIN number, the first one will not (because it would be a new entity.) If it turns out you are doing business in MA (or any other state) without your LLC first being qualified or domiciled there, you'll may end up owing a bunch of fees so this is definitely something you want to sort out before you start working in MA.
posted by griphus at 1:05 PM on June 10, 2014 [2 favorites]

Response by poster: I will be doing business in MA for some clients already there.
posted by spacefire at 2:27 PM on June 10, 2014

No need to move the LLC, although you probably need to register in MA as a foreign LLC if you're doing business there.
posted by jpe at 3:29 PM on June 10, 2014

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