Best way to move a company out of Michigan

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The Redomestication Process in a Nutshell

1. Enter your biz name HERE.

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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.

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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.

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

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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 Michigan 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

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The best way to move a company out of Michigan is to change its legal home, not to rebuild the business

When owners search for the best way to move a company out of Michigan, they often begin with an operational question (Where should we hire? Where should we open a new office?) but overlook the decisive legal issue: the entity’s state of formation controls the governing statute, default fiduciary rules, annual filing requirements, and many of the compliance “tripwires” that persist even after day-to-day activity leaves Michigan. In my experience as an attorney and CPA, the most expensive mistakes typically occur when a business attempts to “move” by simply opening elsewhere while leaving the entity legally anchored in Michigan.

A properly executed redomestication—also described as a statutory conversion—addresses that root problem. It relocates the entity’s domicile from Michigan to the destination state while preserving continuity. For business owners who are serious about leaving Michigan’s tax environment, legal system, and business climate behind, redomestication is the mechanism that most directly aligns legal form with economic reality. For further details and next steps, review the best way to move a company out of Michigan through redomestication.

Why exiting Michigan’s tax environment matters when relocating an existing entity

Businesses do not experience “Michigan taxes” as a single line item. They experience them as an ongoing compliance posture: entity-level filings, withholding obligations, and the practical consequences of maintaining a Michigan-domiciled company even after the owners have moved management, employees, and revenue-producing activity elsewhere. In many situations, remaining domiciled in Michigan invites avoidable complexity because the company must continue to satisfy Michigan’s expectations for a domestic entity, even if Michigan no longer reflects the company’s strategic center of gravity.

Accordingly, the best way to move a company out of Michigan is often the approach that eliminates unnecessary duplication and reduces the risk of inconsistent reporting positions. A redomestication focuses on changing the entity’s home state—rather than creating a second entity or attempting to patch problems later through expensive cleanup work. If your objective is to re-home the entity while keeping operational continuity, the best way to move your Michigan company out of state is redomestication.

Legal continuity is the core advantage: contracts, FEIN, and name preservation

Business owners frequently assume that relocating an entity requires starting over: a new company, a new federal employer identification number (FEIN), new banking relationships, and updated contracts. That assumption is not merely inconvenient; it can be legally and financially dangerous. Many commercial agreements contain provisions that restrict assignment, require consent to entity changes, or trigger default remedies when a counterparty believes the contracting party has changed. If the “move” is implemented as a dissolution-and-reformation, those clauses can become immediate business risks.

By contrast, the best way to move a company out of Michigan is to use a method that preserves the company’s identity in the eyes of counterparties and regulators. Redomestication is specifically valued because it allows the entity to maintain its existing contracts, keep its FEIN, and in most cases retain its name—without interrupting operations. This is precisely why a conversion-based move typically outperforms more disruptive alternatives. To understand the mechanics and eligibility considerations, consult the best way to move a Michigan business out of Michigan with statutory conversion.

Common misconceptions that lead to costly “moves” that are not moves

Misconception #1: “We can just register as a foreign entity and be done.” Foreign registration can be appropriate for a business that continues to operate materially in Michigan. However, it is not the best way to move a company out of Michigan when the intent is a true exit. Foreign registration generally preserves Michigan as the home state and can leave the company with ongoing Michigan reporting, renewal, and administrative obligations, even if the company’s leadership and operations have relocated.

Misconception #2: “We should dissolve the Michigan entity and form a new one.” Dissolution is often presented as a clean break, but it can be the opposite in practice. Dissolution can force the business into contract renegotiations, trigger administrative unwind tasks, and create tax complications if assets or liabilities are transferred improperly. A redomestication is frequently the best way to move a company out of Michigan because it avoids the unnecessary “death and rebirth” of the entity. Where continuity matters, the best way to move a Michigan LLC or corporation out of state is to redomesticate.

Why redomestication is superior to mergers for a Michigan exit strategy

A merger is sometimes marketed as a sophisticated solution, but sophistication is not the same as suitability. Mergers often require the creation of a new destination entity, formal merger approvals, and careful documentation to avoid unintended consequences. While mergers can be valid tools for acquisitions or consolidations, they may be unnecessarily complex when the objective is simply to transfer domicile and preserve the existing operating entity’s continuity.

In many owner-operated businesses, the best way to move a company out of Michigan is the method that keeps the business intact while changing only what must change: its home state. Redomestication generally accomplishes that objective more directly than a merger because it is designed to relocate the entity’s domicile without re-papering the business. This is particularly important where the company has long-standing vendor agreements, customer contracts, licensing relationships, or financing arrangements that function best when the underlying entity remains the same. Additional guidance is available at the best way to move a company out of Michigan using redomestication.

Procedural considerations: precision matters more than speed

Business owners rightly demand efficiency; however, legal accuracy must remain paramount. A compliant redomestication requires coordinated state filings, properly drafted conversion documentation, and a disciplined approach to corporate records so that the entity’s governance history remains coherent after the move. Seemingly minor errors—such as mismatched entity names across documents, inconsistent effective dates, or incomplete approvals—can create delays, rejections, or downstream questions from banks and counterparties.

From a risk-management perspective, the best way to move a company out of Michigan is to treat the process as a formal legal relocation rather than an administrative formality. In practice, this includes aligning governing documents to the destination state, confirming the desired name is available (or determining an acceptable alternative where needed), and ensuring that internal approvals reflect the entity’s governing structure. For businesses that cannot afford operational disruption, a professionally managed redomestication provides the most reliable path. Begin by reviewing the best way to move your company out of Michigan with a streamlined redomestication process.

Strategic outcomes: leaving Michigan’s business climate while preserving enterprise value

Owners typically relocate for strategic reasons: improved tax posture, a more favorable statutory environment, a different regulatory climate, or better alignment with investors and customers. Those goals are undermined if the relocation method destroys intangible value—such as brand continuity, credit history, and contractual relationships. The best way to move a company out of Michigan therefore must be evaluated not only on filing fees, but on whether it preserves enterprise value during and after the transition.

Redomestication is often the most persuasive answer because it keeps the business “whole” while changing the jurisdictional framework that governs it. In other words, it is a relocation mechanism designed for operating companies, not merely for entities that can be shut down and rebuilt without consequence. If your objective is to exit Michigan’s legal and tax environment without sacrificing continuity, the best way to move a Michigan company out of state is to pursue redomestication.

Conclusion: choose the mechanism that moves the entity, not just the activity

Businesses can move people, equipment, and customers quickly; moving the legal domicile requires a disciplined approach. The best way to move a company out of Michigan is not the workaround that leaves the entity trapped in Michigan’s domestic compliance structure, nor the disruptive transaction that forces a new FEIN, new contracts, and a rebuild of institutional credibility. It is the method that accomplishes a true change of home state while protecting the company’s continuity and operational momentum.

For many companies, that method is redomestication. It is specifically designed to transfer domicile while maintaining the existing entity’s contracts, FEIN, and—most of the time—its name, all without disrupting operations. To take the next step, consult the best way to move a company out of Michigan by redomesticating and proceed with confidence.

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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.

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