LLC Domestication: What It Is and How to Do It Right

As businesses evolve, many Limited Liability Companies (LLCs) consider relocating to a new state. This move can happen for various reasons — tax advantages, business opportunities, or personal relocation. However, moving to an LLC is not as simple as packing your bags. That’s where LLC domestication comes in.

LLC domestication allows a business to legally change its home state (domicile) while preserving its original EIN, history, and operational structure. It’s often the preferred method compared to dissolving the old LLC and forming a new one.

What Is LLC Domestication?

LLC domestication is a legal process that allows a limited liability company to transfer its registration from one state to another. The new state becomes the LLC’s new “domestic” home, while the business maintains continuity, legal identity, and credit history.

Unlike foreign qualification (where an LLC registers to do business in another state but keeps its original home state), domestication fully transfers the LLC to the new jurisdiction.

When Should You Consider LLC Domestication?

You might want to domesticate your LLC if:

You are relocating your business headquarters or operations.
Your new state offers better tax benefits or regulations.
You want to avoid paying annual fees in two states (as is required with foreign qualification).
You want to retain your existing EIN, bank accounts, and contracts.

States That Allow LLC Domestication

Not all U.S. states allow LLC domestication. It’s essential to check both the current and destination state laws. Some states that do allow it include:

Florida
Texas
California
Nevada
Delaware
Arizona

States like New York and New Jersey do not currently allow domestication, requiring other alternatives like forming a new LLC and dissolving the old one.

Steps to Domesticate an LLC

Here’s a step-by-step guide to LLC domestication:

Verify Domestication Laws in Both States

Check if both your current (origin) and new (destination) states allow domestication. If either state doesn’t, you’ll need to use a workaround like a merger or new formation.

Prepare a Plan of Domestication

Draft a formal Plan of Domestication that includes:

The names and addresses of the LLC in both states
Proposed changes to the operating agreement
Consent from all members or managers

File Domestication Forms

File required paperwork with:

The Secretary of State in the origin state (to notify and dissolve domestically)
The Secretary of State in the destination state (to register the LLC under new laws)

Typical documents include:

Certificate of Domestication
Articles of Domestication or Conversion
Updated operating agreement
Filing fees

Notify IRS and Update Licenses

Update the IRS with your new state address, and transfer or reapply for local business licenses, permits, and tax registrations.

Inform Banks and Vendors

Notify your bank, clients, insurance provider, and vendors of the LLC’s domestication and new legal home.

LLC Domestication vs. Foreign Qualification

Aspect	LLC Domestication	Foreign Qualification
State Change	Fully moves the LLC to the new state	LLC remains based in the original state
EIN/History Retained	Yes	Yes
Registered Agents	One in the new state only	One in each state
Annual Fees	Only in new state	In both states
Complexity	Moderate	Simple

Costs of Domestication

Fees vary by state, but generally range from $100 to $500 per state. You may also incur:

Legal or formation service fees
State franchise tax reconciliations
Publication fees (in states that require it, like New York)

Common Mistakes to Avoid

Not checking if both states allow domestication
Failing to notify the IRS or update EIN details
Neglecting to inform financial institutions or partners
Letting compliance documents lapse during transition
Filing incorrect forms (e.g., articles of organization instead of domestication)

Professional Help vs. DIY

While DIY domestication is possible, it’s often advisable to consult with:

A business attorney familiar with multi-state operations
A registered agent service to streamline filings and compliance
LLC formation services like LegalZoom, Northwest Registered Agent, or IncFile

Conclusion

If you’re planning to relocate your business and want to maintain your LLC’s legal continuity, domestication is the cleanest and most professional method. It preserves your existing contracts, EIN, bank accounts, and business history—while ensuring you comply with new state laws.

Always research your origin and destination states, file accurately, and consult professionals when in doubt. LLC domestication is not just a legal checkbox—it’s a strategic move that can help future-proof your business.