Can You Relocate or Convert an Alaska LLC to a Florida LLC?

Can You Relocate or Convert an Alaska LLC to a Florida LLC?

How to Convert an Alaska LLC to a Florida LLC

Sometimes life calls for a dramatic change, like moving from the iced-over highways and frozen mountains of Alaska all the way to Florida, where the beaches are all white sand and where no one has to layer up just to get groceries. Our firm specializes in business law. We’ve helped many of our clients from across the U.S. transfer their LLCs to Florida through a “statutory conversion.” This is a process that allows you to easily convert your Alaska LLC into a Florida LLC. Without statutory conversion, you would have to close your original business and start all over in your new state. A full version of the conditions for Florida can be found in Chapter 605 of the Florida Revised Limited Liability Company Act. However, you need to make sure that Alaska allows LLCs to convert into “foreign entities” as well.

What Happens During a Statutory Conversion?

Essentially, a statutory conversion transforms your Alaska LLC into a Florida LLC. It allows you to move your business without making any other major changes. Your LLC keeps its original Federal Employee Identification Number, management structure, and property deeds. Transferring your Alaska LLC to Florida through statutory conversion also retroactively classifies your business as a Florida LLC. However, if a Florida entity is already using your Alaska LLC’s original name, then you need a new one.

Does Alaska Allow LLCs to Convert to Florida LLCs?

Yes, as of the date of this article. LLCs formed in Alaska can convert into Florida LLCs in accordance with Alaska Statute 10.55.501. Alaska corporations, on the other hand, can pursue domestication.

(a) Except as otherwise provided in this section, by complying with AS 10.55.501 – 10.55.506, a domestic entity may become a domestic entity of the same type in a foreign jurisdiction if the domestication is authorized by the law of the foreign jurisdiction.

See AS 10.55.501.

How Do I Convert my Alaska LLC to a Florida LLC?

Your Alaska LLC begins its move to Florida by drafting a plan of conversion. As the name suggests, this is a document that outlines the specifics of the conversion process. The LLC’s Members then need to authorize plan of conversion before you can draft and file the paperwork required by both states. To make sure that you’re compliant with both Alaska and Florida state statutes, review the conversion sections of both the Florida Limited Liability Company Act and the Alaska Entity Transaction Act.

What Happens When I Transfer my LLC from Alaska to Florida?

After transferring your LLC by statutory conversion, your business will be treated as if it was always a Florida LLC. There will be no interruptions in continuity, which allows you to keep doing business during the move. The Alaska Articles of Organization will be replaced by the Florida Articles of Organization without delay. It’s the same LLC that you had in Alaska, just with a new origin story. It will retain the same property rights and the same ownership structure. All the Members will have the same interest in the company that they did before the move, too.

You should know, however, that the LLC also takes any lawsuits against the original entity to Florida as well. The same goes for any liabilities. These lawsuits either continue without interruption or with the new LLC substituted in instead.

Should I Work With a Lawyer to Convert My LLC?

 Mistakes during the conversion process could cause you to lose liability protection, discourage potential investors, or even the liquidation of your company. 

Yes! We can help you with converting your LLC to the state of Florida. We have worked with many businesses including consultants, service businesses, e-commerce businesses, and start-ups to help them relocate their headquarters to the state of Florida.

Alaska has already started melting – why not skip the wait and enjoy warm, sunny beaches right away by moving your LLC down to Florida? Don’t risk breaking your business’s stride — get assistance from an experienced business conversion attorney by calling (727) 279-5037, or if you are ready to convert, check out our service page.

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FL Patel Law PLLC is a boutique business law firm dedicated to entrepreneurs and companies.

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