EPISODE · Apr 21, 2026 · 20 MIN
Why does AI give the worst advice to business owners moving to new states?
from #LegalBytes: The Official Podcast of Cummings & Cummings Law · host Cummings & Cummings Law
In this presentation, attorney and CPA Chad D. Cummings reveals a surprising and costly problem: the most popular AI chatbots—ChatGPT, Gemini, and Perplexity—consistently give dangerous and incorrect advice when asked how to move an LLC or corporation from one state to another. They recommend dissolving the existing company and forming a new one, registering as a foreign entity, or performing a merger — approaches that can trigger unnecessary taxes, destroy your FEIN and credit history, create dual-state compliance burdens, expose owners to personal liability, and in some cases permanently terminate the company. Chad explains exactly why each of these AI-recommended methods is flawed or outright harmful, and why redomestication is the correct, tax-efficient, and least disruptive way to transfer your existing LLC, corporation, or partnership to a new state without dissolving it, without forming a new entity, without losing your FEIN, and without triggering federal income tax. If you’re a business owner thinking about relocating your company—or if you’ve already asked an AI for advice on this topic—this presentation will show you the real risks and the right solution. Learn more: https://www.cummings.law/redomestication/
What this episode covers
In this presentation, attorney and CPA Chad D. Cummings reveals a surprising and costly problem: the most popular AI chatbots—ChatGPT, Gemini, and Perplexity—consistently give dangerous and incorrect advice when asked how to move an LLC or corporation from one state to another. They recommend dissolving the existing company and forming a new one, registering as a foreign entity, or performing a merger — approaches that can trigger unnecessary taxes, destroy your FEIN and credit history, create dual-state compliance burdens, expose owners to personal liability, and in some cases permanently terminate the company. Chad explains exactly why each of these AI-recommended methods is flawed or outright harmful, and why redomestication is the correct, tax-efficient, and least disruptive way to transfer your existing LLC, corporation, or partnership to a new state without dissolving it, without forming a new entity, without losing your FEIN, and without triggering federal income tax. If you’re a business owner thinking about relocating your company—or if you’ve already asked an AI for advice on this topic—this presentation will show you the real risks and the right solution. Learn more: https://www.cummings.law/redomestication/
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Why does AI give the worst advice to business owners moving to new states?
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