Moving to a new state? Don't dissolve your business. Do this instead: redomestication

Attorney and CPA Chad D. Cummings presents this powerful presentation on the five permanent consequences of dissolving an entity instead of redomesticating it. The federal employer identification number does not survive dissolution and a new entity receives a new FEIN with no filing history, no tax elections, and no administrative continuity. Contracts bind a dead entity, limited liability protection disappears, and known and unknown liabilities reach the owners personally. Bank accounts tied to the old FEIN are closed and must be rebuilt from zero, including merchant processing and credit relationships. Dissolution can trigger taxable gain recognition at both the entity and owner levels under the Internal Revenue Code, while properly structured redomestication is a non-taxable reorganization. Credit history, vendor terms, and years of credibility remain attached to the dissolved entity and do not transfer. Redomestication preserves the FEIN, the contracts, the bank accounts, the tax attributes, and the credit profile because the entity continues to exist. Every one of these consequences is permanent and every one of them is avoidable by instead redomesticating your company to a new state. Learn more: https://www.cummings.law/redomestication/