Expanding or relocating your business to another state is never easy, but it may be necessary for growing your customer base, production and/or revenue. As we expand our Central Texas moving company it’s a topic we’ve looked into more than once. This quick guide will give sole proprietorship businesses an overview of what we’ve discovered along the way.
Registering Your Business
One of the first tasks that will have to be completed to establish your business in a new state is registration. This is done using what’s known as a “Doing Business As” (DBA) registration form. This will have to be filed with either the state or the county clerk’s office depending on the new location. Once the new registration is filed your current DBA will be discontinued.
This process will have to be taken even if you have an online or home business.
Licensing & Permits
Remember what it was like when you started your business? All the steps you had to take to secure licenses and permits will have to be taken again in your new state. But the permits and licensing in the new state may be different for the type of business you operate. The Small Business Administration (SBA) has a very handy search tool that will allow you to look up permit and license information by state.
Here are common types of permits and licenses you’ll likely have to obtain in your new state:
- Professional business license from the county
- Sales tax permit
- Home occupancy permit (for home-based businesses)
One of the many benefits of moving a business to Texas is there are no income taxes. But that’s just scratching the surface of how taxes can vary from one state to the next.
The first thing you’ll need to do is alert the IRS that your business is moving. Before you begin operating in a new state you’ll also have to register with the local and state tax entities. The most important part of the process is establishing a new tax identification number. The tax situation can get tricky if you move your business across state lines in the middle of the year. It’s always advisable to consult with a tax expert so nothing is overlooked.
Be careful to track and record all of your relocation expenses because they can be deducted on your tax return.
Your insurance will have to be adjusted as well. There are five types of insurance that need to be updated:
- Rental or Property Insurance
- Disability Insurance
- Workers Comp Insurance
- Unemployment Insurance
- Health Insurance
If you use a national brand discuss your options with your insurance agent. They may be able to keep you covered in the new state. But be prepared for a change in your rates since they typically vary by location. If you own the structure you’ll be moving into you may also have to consider new types of coverage such as flood insurance.
Switch All Your Services
If you’ve ever moved from one home to another you may remember having to change your mailing address, switch your internet and cable services, contact your home security company to relocate your services, etc. All those same tasks will have to be handled for your business as well.
Updating Your Information Online
After all of the legal and financial matters that have to be handled it can be easy to forget one of the most important relocation tasks – letting customers know you moved. The first place to start is sending out an email to everyone on your contact list. Let them know that it’s an exciting time in your business and how the move will affect things moving forward.
Once the move is complete you’ll also want to make sure that your website, social media accounts and all other online resources are updated with your new location and phone number.
This entire process will take months to complete, not counting the time it takes to scout and secure a new location. If you need help moving a business in Houston, Austin or any other city in Central Texas give Square Cow Movers a call. We specialize in helping businesses of all sizes relocate so the transition is easier and stress-free.
Original Source: https://squarecowmovers.com/how-to-move-your-business-to-a-new-state/