Critical Checklist for Moving Your Business
Business owners know that for a company to grow, it must go through changes. Companies take on many forms as they grow and expand, and it’s essential to know how to facilitate necessary moves when the time comes. You might be relocating to another state, moving your office to the convenience of your home, or increasing the size of your office. Planning a business move can be a logistical nightmare if you aren’t organized and aware of the changes you will need to make both within your organization and with federal and state entities.
Notifying your customers of your new location and address is just a small part of the planning that it takes to make a successful business move. You must notify several federal and state officials of your activity, along with making local agencies aware of your plans. Making sure that you comply with all regulatory bodies is an integral part of moving your business.
Once you have reserved a date with a professional mover like www.move-central.com and started to pack up your office boxes, it’s time to make a checklist. Let’s take a look at some of the critical items that should be included in your business moving checklist.
Your business is registered with several different state and local entities that will need to be notified that you are moving and where they can reach you. These notifications should not be an afterthought. Government agencies will need to send out tax notifications and other mail, and they must reach you. Make a list of all federal, state, and local agencies with which you are registered or have contact with and make sure that each is adequately notified about your relocation. Here are a few of the critical agencies that you will need to contact:
Licenses and Permits
- All license and permit grantors should be notified of your move and new applications made if you are moving into a new county or state.
- Your business identification number and other legal elements do not need to be changed unless you move out of state. Local moves will require you to fill out a Change of Address-Form 8822.
Secretary of State
- Amend your Articles of Incorporation and register a new address.
Department of Revenue
- Notify your old state department that you are leaving the area and contact your new Department of Revenue for your new address.
Your company won’t get far without your main customer base, so you must incorporate your moving information into your marketing campaign. Reach out to your clients via email, in-store, and make changes to your website, letting them know where they can find you in the future.
Many small business owners are trying to keep their businesses open by reducing expenses in the age of pandemic lockdowns and strict social distancing guidelines. For those cutting back on overhead, moving their offices to their homes could be a company saving move.
If you plan to move your business to a home office, there are still notifications that must be made. Check with your local registration office about any zoning issues that may prevent you from setting up a shop at home. Also, make sure that you have a dedicated workspace that will qualify to pass an IRS audit for business deductions.
All of your Articles of Incorporation or Partnership Contracts must be changed and witnessed before moving to your new location. All changes to name or address must be recorded, approved by the board or all members of the partnership, and filed with the state. There is generally a small fee, under $35, for filing an amendment to your Articles of Incorporation.
Business Moving Expenses
Business owners are always looking for deductions in the way they run their business. Moving your business can be a huge expense, so you should research the proper method of deducting your moving costs for your corporate taxes. Costs that are deductible include hiring a moving company, new computers and supplies, and inventory requirements. You can search the IRS website to find a complete list of all the qualified expenses that can be deducted when you move your business.
Moving to Another State
If you are planning to move your business to another state, you must first determine if your licensing and registrations for your type of business are allowed in your new state. Some states have restrictions on certain types of businesses or industries. It will be up to you whether you choose to close out your existing state registration and add your new state registration to your business or close out your old state registration. Either way, you must pre-register your business in your new state before you move.
You will need to reapply for all state licenses and permits before you make your move. You may also need to discuss particular insurance coverage with your broker if it needs to be amended for residence in another state. These types of changes to your business need to be delicately handled, and it is to your advantage to speak to your attorney and business manager before you make your move.
Your registered agent is the entity outside your company that you entrust to accept and respond to any legal documentation including taxation information, and subpoenas. Before you move your business, it is essential that you inform your registered agent so that they can make any documentation changes necessary to continue acting on your behalf.
Moving your business takes more planning and careful consideration than simply packing up your desk and letting your clients know where they can reach you. There are serious legal and taxation aspects to a business move that must be processed before you move. Failing to properly register, update your licenses, reapply for permits, and notifying your federal and state entities could result in severe fines or the loss of your business.
Before you move your business, have a meeting with your legal counsel and business manager along with the members of your board, and ensure that each of these requirements is met.