Can You Relocate or Convert an Arkansas LLC to a Florida LLC?
How to Convert an Arkansas LLC to a Florida LLC
If you’re thinking about moving your Arkansas LLC to Florida, then it’s important to know about something known as statutory conversion, or just “conversion” for short. Conversions are a process that our state offers that allows qualifying LLCs from out of state, or foreign LLCs, to become Florida LLCs without interrupting their business’s continuity. A full version of the conditions for Florida can be found in Chapter 605 of the Florida Revised Limited Liability Company Act. Corporations looking to relocate can take advantage of a similar process, corporate domestication.
What Happens to my LLC During a Conversion?
Using Florida’s statutory conversion process to bring your LLC to Florida lets your business relocate to the Sunshine State without dissolving and starting all over again. After the conversion, your LLC will be treated as if it had initially formed in Florida rather than Arkansas. Your business can keep its original FEIN, tax election, management, and property rights. It might need a new name, however, if the one it used in Arkansas is already taken by a Florida entity. To ensure your desired name is available, we recommend performing a simple name search first.
Does Arkansas Allow LLCs to Convert into Florida LLCs?
Yes, Arkansas LLCs can convert into Florida LLCs under Ark. Code Ann. § 4-32-1202.
(a) An organization other than a limited liability company may convert to a limited liability company, and a limited liability company may convert to another organization under this section and §§ 4-32-1203 — 4-32-1205 and a plan of conversion, if the:
(1) Other organization’s governing statute authorizes the conversion and is complied with; and
(2) Conversion is not prohibited by the law of the jurisdiction that enacted the governing statute.Ark. Code Ann. § 4-32-1202
How Do I Convert My Arkansas LLC into a Florida LLC?
The first thing that you need to convert your Arkansas LLC into a Florida LLC is a document called a Plan of Conversion. Your Plan of Conversion, which lays out the procedure for converting the LLC, then needs the approval of the company’s Members. Once the Plan is authorized, the requisite paperwork can be filed with state agencies in Arkansas and Florida. It’s important to exercise great care and diligence during the conversion process, as any errors could lead to dissolution.
What Happens When I Transfer My LLC from Arkansas to Florida?
The conversion’s impact on your LLC is minimal, and you’ll can keep conducting business while you wait for the process to complete. Once the paperwork has been processed, your initial formation documents will be replaced without delay by your new Florida Articles of Organization. The converted LLC is the same LLC that existed in Arkansas. The only difference now is that its origin state has been updated from Arkansas to Florida.
Your Florida LLC can keep the Arkansas LLC’s ownership structure and property rights, and all Members can retain the same Membership Interest as well. Unfortunately, the same goes for any liabilities, lawsuits, or other proceedings against the Arkansas LLC, which will also continue on to the converted business.
Should I Work with an Attorney to Convert My Arkansas LLC?
Yes! We can help you with converting your Arkansas 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.
Ready to benefit from Florida’s lack of income tax and pro-business governance? Don’t risk your business’s continuity – enlist the help of an experienced business domestication attorney by calling(727) 279-5037, or if your business is ready to move, check out our service page.
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