Can You Relocate or Convert an Indiana LLC to a Florida LLC?
Relocating or Converting an Indiana LLC to a Florida LLC
Florida is a popular place for Indiana residents to move to, whether they come for family or to engage in a little beachside relaxation. However, it’s also a popular destination for business owners and other entrepreneurs looking to relocate their operations. As a law firm practicing exclusively in business law, we’ve helped many clients from across the country move to Florida through a statutory process known as a conversion. A full version of the conditions can be found in Chapter 605 of the Florida Revised Limited Liability Company Act.
What Is a Conversion or a Domestication?
Statutory conversions are a process that let you relocate your Indiana LLC to Florida without interrupting business operations or requiring any disruptive changes. It keeps the same EIN that the IRS issued it back when it was still an Indiana LLC, and nothing will change its property deeds or management structure. All that changes is that your Indiana LLC is now considered to have been a Florida LLC from its inception. That said, you should perform a simple name search to see if your Indiana LLC’s name has already been taken by a business in Florida. If it’s already taken, you may need to think of a new one.
Does Indiana Allow Limited Liability Companies to Move Out of State?
Yes, under Indiana Code 23-0.6-4-1, Indiana LLCs are permitted to convert into Florida LLCs.
Ind. Code §23-0.6-4-1
(a) Except as otherwise provided in this section, by complying with this article or other law, a domestic entity may become:
(1) a domestic entity of a different type; or
(2) a foreign entity of a different type, if the conversion is authorized by the law of the foreign jurisdiction
How Do I Convert My Indiana LLC to a Florida LLC?
The conversion process starts when the LLC drafts a plan of conversion that outlines how the transfer will occur. The next step is to have the LLC’s owners, known as its Members, approve of the plan before drafting and filing paperwork with the appropriate state agencies. You should review the conversion sections of the Limited Liability Company Act and follow the exact steps prescribed by the statutes of both the state of Florida and the state of Michigan.
What Are the Effects of Converting My LLC?
Aside from changing your Indiana LLC into a Florida LLC, the effects of the conversion process are minimal. It’s the same business entity before and after conversion. Essentially, what happens is that your Indiana LLC’s founding documents are canceled out and replaced with those filed with Florida’s Division of Corporations. Ownership in the company, as well as any real estate or other property rights held by the Indiana LLC will continue unchanged.
It’s important to know, however, that this is also the case for any liabilities or lawsuits back in Indiana – they’ll follow your business to Florida, too. These lawsuits can either continue without interruption, or the Florida LLC might be switched in for clarity.
Should I Work With a Lawyer to Convert My LLC?
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.
Are you ready to move your Indiana LLC from the Midwest down to sunny and beautiful 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 flat fee service page.