Can You Relocate or Domesticate a Kansas Corporation to Florida?

Relocate, Transfer, Convert, or Domesticate a Kansas Corporation to Florida

Updated: February 9, 2024
Reading Time: 10 Minutes

Objectives:

• Domicile a Kansas corporation to Florida;
• Keep the same EIN and corporate identity; and
• Enjoy tax benefits provided to Florida residents.

Entities:

• Kansas corporations

Table of Contents

• What is a Domestication, Conversion, or Transfer?
• Can Kansas C or S Corporations Move to Another State?
• Will This Dissolve My Kansas C or S Corporation?
• Do I Need to Get a New EIN After Domesticating My C or S Corporation to Florida?
• How Can FL Patel Law PLLC Help Domesticate a Kansas Corporation to Florida?
• How Long Will It Take for FL Patel Law PLLC to Domesticate a Kansas C or S Corporation?
• How Much Does it Cost to Domesticate a Kansas Corporation to Florida?
• What Are Some of the Dangers of Domesticating a C or S Corporation Without an Attorney’s Assistance?
• Make Your Domestication More Convenient and Secure with FL Patel Law PLLC
• What Tax Implications Can I Expect if I Domesticate a Kansas Corporation to Florida?
• Should I Hire FL Patel Law PLLC to Domesticate My Kansas C or S Corporation?

There are few better places in America to be a business owner than in Florida. Because of this, corporations, consultants, and other entrepreneurs have been flocking to our state from places like Kansas looking for a new home. Our firm’s preferred methods for doing this is called “domestication.”

The possible complications and outright dangers of trying to domesticate a Kansas corporation to Florida without an attorney’s assistance should be avoided at all costs. FL Patel Law PLLC’s experience in this field can be an invaluable asset when it comes to preventing delays and even more serious problems. Our firm has successfully reorganized over 140 businesses into Florida entities, which is why you can trust us to have the knowledge and expertise needed to manage your relocation.

This page will give you a general overview of the refined process that we use to domesticate a Kansas corporation to Florida, plus some information on how that process can save time and money during your company’s relocation. It also has some essential information on the dangers of attempting a transition like this on your own and how an experienced attorney can help keep you and your business safe.

Your company’s future could be at risk if you try to domesticate a Kansas corporation to Florida without experienced, reliable legal counsel. In fact, certain mistakes could even cause it to be dissolved. Working with our corporate law firm can help protect your company’s interests at every stage of the process, ensuring a successful transition from state to state.

Domestication is a legal process that corporations can use to become domestic entities in other states. However, the states in question must both have laws authorizing this type of move.

This transition is also commonly known as a “conversion” or “transfer” when the company is moved to a new state. These terms can often be used interchangeably when discussing how to domesticate a Kansas corporation to Florida.

Companies undergoing domestication get to change their official state of incorporation while keeping the rest of their corporate identity. The business’s continuity won’t be interrupted when you domesticate a Kansas corporation to Florida, either. This helps ensure that the Kansas corporation’s contracts, relationships, licenses, rights, assets, privileges, and liabilities transfer over seamlessly to the domesticated Florida corporation.

After you domesticate a Kansas corporation to Florida, your entity will be governed by the Florida Business Corporation Act (FBCA). It’s also important to know that, while this won’t be the case for every business, there are some circumstances in which your initial formation state’s tax laws will continue to apply to your Florida entity. Some of these situations include having a foreign qualification or nexus in Kansas after moving. Be sure to bring this up during your initial consultation with our corporate attorney.

Yes – you can domesticate a Kansas corporation to Florida according to Section 17-78-501 of the Kansas Statutes Annotated. Limited liability companies (LLCs) formed in Kansas can use a similar process known as statutory conversion to become Florida entities.

Assuming that the process is properly managed, your original business entity won’t be dissolved when you domesticate a Kansas corporation to Florida. That said, there are certain mistakes that could lead to the liquidation of your company. Attorney oversight is the cornerstone of preventing these types of mistakes and other problems that can arise during corporate domestication.

The Internal Revenue Service (IRS) will review the conditions of your domestication when deciding if you can keep using the same EIN for your Florida entity. Once they’ve made their determination, they’ll issue a private letter ruling to your company. Many different factors are considered here, but ensuring your corporation’s continuity during its domestication is essential, as the IRS must consider it to be the same entity both before and after its relocation.

Because every domestication project has its own unique needs, there’s no one-size-fits-all approach that can be taken when you domesticate a Kansas corporation to Florida. What follows is a summary of how we help our clients move from state to state, not instructions for doing so. For that kind of hands-on legal guidance, schedule your consultation with Attorney Patel now.

Teaming up with our firm to relocate your business to Florida starts with your initial consultation with Attorney Patel. By carefully reviewing the client’s business, we’re able to develop a personalized plan for domesticating the corporation from Kansas to Florida with its continuity and identity intact.

The wide range of support that our firm will provide when you hire us to domesticate a Kansas corporation to Florida includes:

• Drafting all documents required to domesticate a Kansas corporation to Florida, including the Plan of Domestication;
• Ensuring compliance with the laws, regulations, and other legal requirements present in both Kansas and Florida;
• Handling all filings and correspondence with Kansas and Florida state agencies;
• Updating the C or S corporation’s bylaws and other corporate documents to reflect its domestication to Florida; and
• A final consultation at the end of the project where our corporate lawyer will answer any questions you have left about your company’s relocation.

You can domesticate a Kansas corporation to Florida as quickly as possible when you hire our firm to manage its relocation. This efficiency can only be achieved by working with a corporate law firm like ours that has a high level of experience with these transitions. Usually this works out to about two or three months, but more time might be required depending on the size of the company and its assets.

State agencies in Kansas and Florida will need at least several weeks each to process your company’s domestication filings. Some extra patience might be needed, too, if those agencies face their own delays due to short staffing or other issues. As a consequence, any mistakes that you make with your paperwork can significantly postpone your company’s domestication from Kansas to Florida. Working with an attorney is the best way to prevent these types of mistakes from threatening your company’s relocation.

The filing fees for domesticating a corporation vary from state to state. Florida charges $128.75 and Kansas charges $75.00, so your initial paperwork will cost at least $203.75, assuming no mistakes are made. Remember that an attorney’s oversight can help prevent the types of errors that can lead to increased costs when you domesticate a Kansas corporation to Florida.

Our corporate law firm offers flat fees for domestication projects that are based on the specific demands of that company’s relocation. These flat fees can help our clients avoid unexpected costs. Schedule a consultation with Attorney Patel now to get a quote to domesticate a Kansas corporation to Florida.

A process as complex as domesticating a corporation to a new state deserves the added security that comes with an attorney’s assistance. Otherwise, there’s no way to guarantee a successful transition from Kansas to Florida.

Although this is not a comprehensive list, trying to domesticate a Kansas corporation to Florida without experience or legal assistance can lead to problems that include:

• Noncompliance with state laws
• Revocation of the Kansas corporation’s operating authority
• Damaged credit standing
• Damaged relationships with clients and vendors
• Disrupted contracts
• Loss of continuity
• Piercing the corporate veil
• Loss of liability protections
• Tax implications and increased tax liabilities
• Legal disputes
• Dissolution or liquidation
• Missed opportunities
• Expensive fines
• Painful delays
• Taxes on Appreciated Assets – The gained value of your company’s appreciated assets could pass on to its shareholders if you make a mistake when domesticating it to Florida. In other words, if something that was valued at $500,000 when the business was incorporated is now valued at $5,000,000, then you and your fellow business owners could be responsible for that increase.
• Title of Asset Problems – Without us around to make sure that everything is done correctly, then your company’s asset titles might not automatically transfer over to your Florida entity. If that happens, it can be difficult or even impossible to prove that your C or S corporation owns those assets. In addition to other problems, this can be a major roadblock if you ever try to sell your business.

Again, keep in mind that this is not a complete list of the dangers of a mismanaged conversion or domestication from one state to another.

FL Patel Law PLLC has helped bring over 140 companies to Florida with their corporate identities intact. A track record of this caliber means that we know how to domesticate a Kansas corporation to Florida securely, efficiently, and with everyone’s interests protected at every stage of the project.

Trying to domesticate a Kansas corporation to Florida without legal guidance means that there’s no guarantee that your company will safely make it to its new home state. Working with us isn’t just a massive convenience – it’s foundational to securing the overall success of the project, too.

1. If domesticating your company to Florida removes its nexus in its original state, then you won’t need to file with the State of Kansas ever again.

2. Relocating your company from Kansas to Florida opens you up to work with Florida professional accountants, attorneys, and other service providers.

3. Unlike some other methods for changing a company’s formation state, domestication won’t interrupt your entity’s continuity or its ability to do business.

4. Florida Articles of Incorporation will replace your company’s original formation documents, ensuring that the Florida corporation continues to enjoy the same powers, rights, benefits, exemptions, privileges, and principles that it did as a Kansas corporation.

5. Domestication won’t change the amount of stock owned by each shareholder. The value of that stock won’t be changed, either. During this process, real estate and other property rights will automatically transfer to the Florida entity. This is also true for any liabilities or lawsuits faced by the corporation. The Florida corporation’s name may be substituted in place of the Kansas entity’s name for any pending legal procedures or actions.

6. Your company’s shareholders don’t need to be Florida residents.

7. Domestication can remove your corporation’s nexus (taxable connection) in its original formation state. As a result, you could end up with a lower tax burden at the state level. Talk to your tax professional about this, as tax implications will vary from business to business.

8. You don’t need to get a new EIN after you domesticate a Kansas corporation to Florida. Only the company’s domicile will be changed.

9. Your domesticated Florida corporation will also be able to keep using the same bank accounts, the same taxpayer ID, the same operations, and the same contracts that it did as a Kansas corporation. However, this might not be the case without careful planning, research, and legal guidance.

As you consider the different legal implications that come with domesticating your company, it’s important to plan for the differences in how it will be taxed after it becomes a Florida entity. You’ll want a tax professional’s help with this, as our law firm can only offer general information on these issues. A few things to consider bringing up during your consultation with them could include:

• State Income Tax: One of the many things that sets Florida apart from other states is that Florida doesn’t have its own income tax at the state level. As a result, many business owners are able to save money by relocating to the Sunshine State. Of course, federal tax responsibilities will continue to apply even after you domesticate a Kansas corporation to Florida.

• Franchise Tax: The State of Florida doesn’t have a franchise tax for corporations or business owners, either. That said, the company will need to close its account with the Kansas Department of Revenue and Secretary of State and file final returns if necessary.

• Nexus: A business has a nexus (taxable connection) in any state where it has a physical location, employees, or otherwise conducts substantial activities. If your corporation still has a nexus in Kansas after it becomes a Florida entity, then Kansas tax laws will continue to apply.

After successfully domesticating the corporation into a Florida entity, Attorney Patel meets with the client to answer any remaining questions and review the overall project. They are also given a post-domestication checklist that will help introduce them to their new responsibilities as Florida business owners.

As both a lawyer and an entrepreneur himself, Attorney Patel’s guidance can make all the difference when setting your company up for success in its new home state. Our corporate law firm provides a full suite of services that are essential to operating a C or S corporation in Florida.

Don’t gamble with your company’s future by trying to domesticate a Kansas corporation to Florida on your own. Hiring us for your relocation means that you can move forward with confidence, security, and more time to focus on what matters most: actually running your business. Schedule now to get started.

Our firm is ready to help domesticate your Kansas corporation to Florida. Don’t risk breaking your business’s stride — get assistance from an experienced business domestication attorney by scheduling a time through our online calendar or by calling (727) 279-5037.

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