Best way to move a company out of Delaware

---

Start Your Redomestication Now

The Redomestication Process in a Nutshell

1. Enter your biz name HERE.

Then click "get exact price" and follow the steps.

Takes less than five minutes.

Submit payment securely online then sit back and relax.

24-48 hours

2. We prepare the legal docs.

Our dually-licensed attorney+CPA prepares the legal documents and sends them to you via DocuSign.

You sign. We take it from there.

Same Day

3. We submit the legal filings to the states.

We monitor the status closely, respond to inquiries from their offices, and send you weekly updates.

No extra charge. 100% success rate.

1-3 months

4. Approved! ✅

We send you a checklist of go-forward obligations and simple steps for your tax pro to follow.

120% money-back guarantee if we do not succeed.

Did you know? The average business that moves to a state without state-level income tax saves over $12,500 in taxes per year.

Still have questions? Schedule a free meeting with our attorney and CPA.

Redomestication, also known as redomiciling, refers to the lesser-known legal process of transferring or moving the "home state" of an existing Corporation, partnership, or LLC, from Delaware to a new state. It means keeping your existing company name, credit, and federal employer identification number (FEIN) without wasting time and money creating a new business entity, applying for foreign registration, or moving assets between companies.
— Prof. Chad D. Cummings, Esq., CPA

Start Your Redomestication Now

The best way to move a company out of Delaware is to preserve continuity, not create disruption

When an operating business determines that Delaware no longer aligns with its tax posture, compliance strategy, or risk tolerance, the objective should be straightforward: change the company’s legal domicile without impairing day-to-day operations. In practice, the best way to move a company out of Delaware is the approach that preserves the entity’s legal identity, minimizes administrative friction, and avoids needless re-papering of the business’s commercial relationships.

For most established entities, the most defensible way to accomplish that outcome is redomestication (also referred to as statutory conversion). Redomestication allows the entity to relocate its “home state” from Delaware to another state while maintaining continuity of the business itself. For businesses seeking a clean exit from Delaware without the disruption associated with dissolutions, mergers, or forming a new entity, the best way to move a company out of Delaware through redomestication is the most efficient mechanism.

Equally important, redomestication is designed to avoid the common pitfalls that arise when business owners receive incomplete or overly generic advice. A relocation that appears simple on paper can create cascading issues in banking, contracting, licensing, and tax compliance if the transaction is structured incorrectly. Professional guidance is particularly important when the entity has employees, regulated activities, financing arrangements, or long-term contracts that presume continuity of the legal entity.

Why many businesses decide to exit the Delaware tax environment, legal system, and business climate

Delaware offers meaningful advantages for certain businesses, particularly venture-backed companies planning multiple rounds of institutional investment. However, the calculus often changes for privately held companies, closely held operating businesses, and entities that no longer benefit from Delaware’s ecosystem. In those cases, moving out of Delaware is frequently a rational effort to reduce recurring obligations and align governance with the state where operations actually occur.

From a tax and compliance perspective, owners are often surprised to learn that “being a Delaware company” can carry ongoing administrative costs even after the business has effectively relocated in practice. Depending on the business’s footprint, the company may face duplicative filings, registered-agent fees, and other annual maintenance burdens. A carefully executed redomestication can be the best way to move a company out of Delaware when the business has permanently moved its operational center and intends to consolidate compliance into the new home state.

From a legal perspective, businesses also evaluate the litigation environment, procedural expectations, and the practical realities of managing entity matters from out of state. While Delaware’s courts are sophisticated, sophistication can also mean complexity and expense when disputes arise. For many operating companies, particularly those without a Delaware-centric investor base, it is prudent to relocate the domicile to a jurisdiction that better matches the company’s present needs.

Redomestication (statutory conversion) is the best mechanism to move out of Delaware without breaking your company

Business owners commonly assume that moving a company out of Delaware requires forming a new entity and transferring assets, contracts, and accounts. That approach is frequently unnecessary and often counterproductive. By contrast, redomestication changes the company’s domicile while enabling the entity to continue as the same business—an outcome that is critical when the company has vendor agreements, customer contracts, loan covenants, or licensing relationships that would otherwise require consent or assignment.

As an attorney and CPA, I focus on the practical and legal consequences that arise after the transaction closes. The best way to move a company out of Delaware is not merely the method that achieves the filing; it is the method that avoids operational interruption. Redomestication is designed to maintain continuity of contracts, preserve the federal employer identification number (FEIN), and, in most cases, keep the company’s name—precisely the elements that make the transition commercially viable.

For owners who want to proceed confidently, a redomestication-based plan for moving a company out of Delaware is typically the most direct solution because it avoids dual-state “limbo” and reduces the need for extensive transactional clean-up.

Key continuity benefits: FEIN, contracts, credit history, and (usually) the company name

The most valuable aspect of redomestication is that it is structured to keep the business intact while the jurisdiction changes. In practical terms, the company generally retains its FEIN, which helps avoid complications with payroll providers, banking systems, and information returns. It also reduces the likelihood of errors that can occur when a new entity is formed and business activity must be “migrated” to a separate taxpayer identity.

Contracts are the second major pressure point. Many agreements contain anti-assignment provisions, change-of-control clauses, or notice requirements that can be inadvertently triggered by a merger or by transferring assets to a newly formed entity. Where a company’s revenue depends on ongoing performance obligations, the best way to move a company out of Delaware is the method that does not require re-papering the business’s contractual infrastructure. Redomestication is specifically valued because it typically allows the company to continue operating under existing agreements without forcing mass renegotiation.

Finally, continuity matters for credit history, vendor accounts, and public-facing brand identity. Many businesses have invested substantial time and resources in their name recognition and operational reputation. In most cases, redomestication permits the entity to keep its name, avoiding confusion for customers and counterparties while maintaining consistency across invoices, payment portals, and marketing assets.

Common misconceptions that cause expensive mistakes when attempting to leave Delaware

Misconception #1: “Foreign registration is the same as moving.” Foreign qualification can allow a Delaware entity to do business in another state, but it does not change the company’s home state. As a result, the business may remain subject to Delaware-level obligations while also taking on a second set of annual requirements in the new state. In many cases, foreign registration is not the best way to move a company out of Delaware because it can institutionalize double compliance instead of eliminating it.

Misconception #2: “Dissolve Delaware and start over.” Dissolution may seem like a clean break, but it can create operational harm, including the need to open new bank accounts, reset vendor onboarding, re-apply for permits, and unwind contractual rights that were carefully negotiated over years. Dissolution can also trigger tax and accounting consequences depending on how assets and liabilities are handled. For an operating company, dissolution is rarely the prudent route when a statutory conversion can achieve the relocation while maintaining the same company.

Misconception #3: “A merger is the safest option.” A merger can work, but it often introduces unnecessary legal complexity, higher costs, and avoidable points of failure. Mergers require new entity formation, drafting additional transaction documents, and compliance with more formalities. Where the business objective is simply to change domicile, a properly executed redomestication is typically the best way to move a company out of Delaware because it achieves the goal with fewer moving parts and less disruption.

Procedural and documentation considerations: what sophisticated owners should evaluate

Redomestication is not a “one-form” project. The process should be managed with attention to the entity’s governance documents, ownership approvals, and the practical needs of third parties such as banks and payment processors. A well-run conversion also contemplates the company’s good standing status and ensures that required filings in both states align in timing and content.

Businesses should also consider the interplay between entity domicile and real-world operations. For example, if employees and management are already located in the new state, consolidating the home state can simplify internal governance and reduce confusion about where entity actions are authorized. Additionally, owners should anticipate post-approval steps, such as updating registered agent records, internal resolutions, and compliance calendars—tasks that are frequently overlooked when the project is approached without experienced counsel.

For companies that want a reliable workflow, the best way to move a company out of Delaware is to follow a structured redomestication process that prioritizes accuracy, speed, and continuity. A well-managed filing sequence can be the difference between a seamless transition and months of corrective work.

Conclusion: selecting the best way to move a company out of Delaware requires a continuity-first strategy

Delaware may be an excellent jurisdiction for some companies at certain stages, but it is not universally optimal forever. When the business has outgrown the need for Delaware’s framework or no longer benefits from remaining there, the appropriate next step is to relocate the domicile in a manner that preserves the value already built inside the entity.

In most circumstances, the best way to move a company out of Delaware is redomestication because it preserves the company’s legal identity while enabling the business to leave Delaware’s environment without unnecessary disruption. It is specifically designed to maintain the FEIN, preserve contracts, protect credit history, and—most of the time—keep the company name, all while avoiding the needless administrative baggage of dual-state compliance.

Business owners who prefer certainty should proceed with a defined plan rather than improvising with foreign registration, dissolution, or a merger that is more complicated than the problem it is trying to solve. For a direct path forward, use the best way to move a company out of Delaware by starting a redomestication and ensure the process is handled with the legal and procedural rigor the transaction demands.

Start Your Redomestication Now

Domestication vs. Foreign Registration vs. Merger vs. Dissolution: A Comparison

Domestication is, in many circumstances, far preferable to registering an LLC or corporation as a foreign entity, especially where the LLC or corporation has permanently moved its operations and will not be returning to the prior state in the near future.

Some attorneys, unfortunately, confuse their clients by recommending a foreign entity registration in the new state, or worse, a merger, where a redomestication™ would have accomplished the goals of moving their business to a new state efficiently and effectively.

The top seven benefits of moving your company (LLC, corporation, or partnership) to a new state via redomestication™ to transfer your business include:

1. Maintaining your existing federal employer identification number, eliminating the tax headaches of forming a new company or transferring assets between companies (and inadvertently triggering a hefty tax bill from the IRS) when you move your business to a new state;
2. Keeping your existing business credit history and track record, safeguarding your reputation with clients, vendors, and creditors when moving your LLC or corporation to a new state;
3. Continuing your existing business name (in almost every case), protecting your most important assets when moving your company to a new state: your brand, reputation, and time you have already invested in search engine optimization;
4. Maintaining your existing contracts with customers and vendors because moving your business to a new state via redomestication™ does not create a new company: it maintains your existing company, saving you dozens (or even hundreds) of hours re-writing (and re-negotiating) contracts and changing banks;
5. Eliminating the need to continue paying registration fees and taxes in your prior state (assuming you have discontinued your operations there and have permanently relocated to a new state), potentially saving you tens of thousands of dollars (or more) in state taxes every quarter when you move your business to a new state;
6. Avoiding unnecessary IRS scrutiny because moving your LLC or corporation to a new state via redomestication™ is a tax-free transaction under the Internal Revenue Code; and
7. Reducing the amount of time you spend on administrative filings, saving you untold hours annually, by moving your company to a new state.

Before taking the "penny wise and pound foolish" approach of foreign entity registration or spending countless hours and exorbitant legal fees (and possibly taxes) on a merger or merger-gone-wrong to move your company to a new state, ensure you understand your options.

In most circumstances, redomestication™ (and not a foreign entity registration or costly and complicated merger) is the best route to achieve a change in company domicile to a new state.

Start Your Redomestication Now