If you’re headed to the Golden State and plan to take your LLC with you, no problem. Here’s what to know about transferring your business to California:
Can I move my LLC to California?
Yes. You have a few options:
- Dissolution / formation – While this won’t necessarily keep your current formation documents intact, you can certainly dissolve your current LLC then form a new California LLC.
- Foreign registration – If you’re planning to keep your business registered in your current state, then you can your business a foreign LLC in California. (“Foreign,” in this case, just means out-of-state.)
- Conversion – This is the state-assisted process of transferring a company’s formation documents from one state to another. It’s often the most efficient and cost-effective method of moving a business to a new state.
The filing fee for any one of the methods described above is $70 (plus $15 if you file in person). Of course, moving a business to a new state comes with other financial considerations. To discuss what might work best for your company financially, it’s a good idea to consult with a business attorney or CPA.
For more information about doing business in California as an out-of-state LLC, see Northwest’s page: Register a Foreign LLC in California.
Does California allow LLC domestication?
Yes. In California, the process of domestication is known as conversion.
How do I convert my company to a California LLC?
To convert your out-of-state LLC to a California LLC, you’ll have to:
- Create a plan of conversion
- Get approval from your LLC members
- File Limited Liability Company Articles of Organization – Conversion (Form LLC-1A)
According to CA Corp Code § 17710.08, you won’t be able to convert your company into a California LLC unless the laws of your current state also allow for LLC conversion or domestication. So, definitely check to make sure conversion is allowable in your home state before you start the process with California.
What’s a California LLC plan of conversion?
A plan of conversion is a document drafted on behalf of your LLC that provides details about how your company will handle certain aspects of moving to a new state. When moving your LLC to California, your plan of conversion should include:
- Terms and conditions of conversion
- The jurisdiction of your current LLC
- The jurisdiction of your LLC once it’s in California
- The name of your California LLC
- The method for transferring membership interests to your new CA LLC