Can You Relocate or Convert a Colorado LLC to a Florida LLC?
Converting or Relocating a Colorado LLC to a Florida LLC
Florida’s business-friendly court system and its beautiful, one-of-a-kind scenery attract business owners and other vacationers from all over America, and Coloradoans are no exception. The good news is that it has never been easier to move your LLC to Florida. This is all because of a process called a statutory conversion. For this to take place, both Florida and Colorado must have passed laws permitting its use. A full version of the conditions for the state of Florida can be found in Chapter 605 of the Florida Revised Limited Liability Company Act.
What Happens in a Conversion?
When a conversion takes place, your Colorado LLC becomes a Florida LLC without any interruptions or major changes. It retains the same EIN, management style, and property that it had back in Colorado. Your LLC will now be treated as if it were a Florida LLC from the start. That said, you might need a new name for your company if yours is in use by a Florida business. Check the availability of your company’s name before making your move by performing a name availability search of the Florida Division of Corporation’s database.
Does Colorado Allow LLCs to Convert to Florida LLCs?
Yes, as of the date of this article, it is possible to transfer a Colorado LLC to the state of Florida according to the Colorado Revised Statutes. Colorado corporations interested in becoming a Florida entity should instead look into corporate domestication.
(1) Pursuant to a plan of conversion approved in accordance with section 7-90-201.4:
(a) A domestic entity of one form may be converted into any other form of domestic entity.
(b) A domestic entity may be converted into any form of foreign entity recognized in the jurisdiction under the law of which the entity will be considered to have been formed after the conversion.
See CRSA § 7-90-201
How Do I Convert my Colorado LLC to a Florida LLC?
Converting your Colorado LLC begins with drafting a plan of conversion that outlines the procedure for transferring the business. The plan of conversion needs approval from the LLC’s Members. Once they’ve signed off on the plan, you can draft and file the appropriate paperwork with agencies in both states. Make sure to review the conversion statutes for Florida and Colorado carefully before going forward. Mistakes made here risk the discontinuity of your business.
What Are the Effects of Transferring my LLC from Colorado to Florida?
Statutory conversions let you transfer your LLC to Florida without interrupting business. It cancels out the original Colorado Articles of Organization and immediately replaces them with the Articles of Organization that you filed with the state of Florida. Everything else – everyone’s membership interest, as well as the LLC’s real estate and other property rights – remain as they were before the conversion. But beware – this is also the case for any lawsuits against the converting entity, as well as any accrued liabilities.
Should I Work With a Lawyer to Convert my LLC?
Absolutely! Our firm already has experience helping multiple LLCs from across America convert into Florida LLCs. We have worked with all industries, including consultants, service businesses, e-commerce businesses, and start-ups in relocating to the state of Florida. Protect your business’s continuity during its move by contacting us today.
Are you ready to get away from the snowy Midwest and move your Colorado LLC down to sunny 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.