Can You Relocate or Convert a Vermont LLC to a Florida LLC?
Transferring or Converting a Vermont LLC to a Florida LLC
Vermont LLC Owners who want to join the growing tide of businesses relocating to Florida should know that they may be able to convert their companies into Florida LLCs by utilizing a statutory process known as conversion. A similar option exists for corporations — domestication. There are many reasons to do this aside from our beautiful scenery. You will be free from the burden of a state income tax here, and our government is well known for its pro-business attitude, just to give a couple examples. A full version of Florida’s conditions for qualifying for a conversion can be found in Chapter 605 of the Florida Revised Limited Liability Company Act.
What is a Conversion?
Converting your business from a Vermont LLC to a Florida LLC is a great way to relocate your operations to Florida because it doesn’t interrupt your business’s continuity. Without conversions, you would likely need to dissolve your business and reincorporate in Florida, effectively starting from scratch. Another advantage to the conversion process is that almost everything about your LLC is going to stay the same, including its EIN, management structure, property rights, and even its incorporation date. The only thing being altered is the LLC’s origin state, and from now on, your LLC will be treated as if it had formed in Florida from the get go.
Your LLC may not be able to keep the same name, however, if the name used in Vermont is already reserved by a Florida entity. For this reason, your company should conduct a simple name availability search using the Florida Division of Corporation’s database before contacting a lawyer for assistance with converting your Vermont LLC.
Does Vermont Allow LLCs to Move Out of State?
Yes, Vermont LLCs are allowed to convert to Florida LLCs according to Vt. Stat. Ann. tit. 11, § 4152.
(b) A limited liability company may become a foreign limited liability company pursuant to this section, sections 4153 through 4155 of this title, and a plan of domestication, if:
(1) the foreign limited liability company’s governing statute authorizes the domestication;
(2) the domestication is not prohibited by the law of the jurisdiction that enacted the governing statute; and
(3) the foreign limited liability company complies with its governing statute in effecting the domestication.Vt. Stat. Ann. tit. 11, § 4152
How Do I Convert My Vermont LLC?
A Plan of Conversion is the first thing that you need to Convert a Vermont LLC to a Florida LLC. This is a formal document that outlines the details of the conversion process. Your Plan of Conversion then needs to be approved of by the LLC’s Owners (also known as the LLC’s Members). Once that approval has been obtained, the paperwork called for under the Vermont and Florida statutes can be filed with the appropriate agencies in both states. Follow those statutes carefully, as any mistakes you make here could lead to your LLC’s dissolution.
What are the Effects of Converting My LLC?
When converting your LLC, your business’s continuity is maintained because your initial formation documents are immediately replaced by your new Florida formation documents upon processing. All Members will keep the same interest in the company, and any real estate or property rights held by the Vermont LLC will transfer over to the Florida LLC. However, the same goes for lawsuits, liabilities, or other proceedings against the LLC, which will similarly follow the business to Florida. Remember, this is the same entity as before, just under a new jurisdiction.
Should I Hire FL Patel Law to Help with My LLC Conversion?
Yes! Our firm can help you move your LLC to Florida with as little stress as possible. We’ve helped numerous clients including consultants, service businesses, and more to relocate to the state of Florida. Start your business’s next journey on the right foot by contacting us today.
Is your Vermont LLC ready for a new start on the better half of the East Coast? 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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