Best way to move a company out of Virginia

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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.

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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 Virginia 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 Virginia: why statutory conversion (redomestication) is the professional standard

When clients ask for the best way to move a company out of Virginia, they are rarely asking for a mere paperwork filing. They are asking for continuity: continuity of contracts, banking, credit, vendor terms, employment infrastructure, and tax identity. They are also asking to reduce exposure to a tax environment and legal system that no longer aligns with their operational footprint. For an established LLC, corporation, or partnership, the best way to move the company out of Virginia is typically not to form a new entity or to “start over,” but rather to transfer the entity’s home state while preserving its legal and tax identity.

In most cases, redomestication (also referred to as statutory conversion) is the best way to move a company out of Virginia because it is designed to relocate an existing entity without disrupting operations. Properly executed, it is the mechanism that best preserves the practical assets business owners value most: the existing federal employer identification number (FEIN), the existing contracts, and—most often—the existing company name. To evaluate whether redomestication is appropriate for your entity type and destination state, review the best way to move your company out of Virginia through redomestication.

Why exiting the Virginia tax environment can be a rational business decision

A sound relocation strategy begins with a candid assessment of ongoing state tax friction. For many businesses, the long-term cost is not a single filing fee—it is the recurring compliance burden and the accumulated cash impact of operating in an unfavorable state tax environment. When a company’s owners and business activities have shifted elsewhere, continuing to maintain a Virginia “home state” entity can produce unnecessary administrative obligations and, in some circumstances, additional state-level exposure.

Accordingly, the best way to move a company out of Virginia is often the approach that reduces dual-state compliance and supports a clean transition. Redomestication is structured to change the company’s domicile rather than layering a second registration on top of the first. This distinction is critical. A foreign registration strategy may allow a company to operate in the new state, but it can also keep the former state’s ongoing filing expectations in play. By contrast, a redomestication-focused strategy is typically aimed at an orderly exit from Virginia as the home jurisdiction, consistent with the company’s actual operations.

Why exiting the Virginia legal system and business climate may reduce operational friction

Business owners commonly underestimate the practical consequences of the “home state” designation. The state of domicile can influence governance rules, internal disputes, and the procedural framework for addressing conflicts among owners, managers, and creditors. When the company’s leadership, employees, and commercial activities have moved, it is prudent to align the entity’s internal legal framework with the jurisdiction where it now operates.

For that reason, the best way to move the company out of Virginia is often the method that accomplishes a true domicile shift, not merely a permission slip to do business elsewhere. Redomestication directly targets that objective. It is not a cosmetic change; it is an intentional legal relocation of the entity’s home state, which can support a more coherent governance posture and reduce the confusion that arises when an entity is “living” in one state but legally “based” in another.

Redomestication as the best mechanism: preserve the FEIN, contracts, and (in most cases) the company name

From both a legal and accounting perspective, the most persuasive advantage of redomestication is that it preserves the operating company itself. That is why the best way to move a company out of Virginia is usually the mechanism that does not force a new entity creation, a contract assignment project, or a bank-and-vendor reset. In practical terms, statutory conversion is a continuity tool: it is designed to relocate the company’s domicile while keeping the company’s core identifiers intact.

This continuity is not an academic benefit. If a company forms a brand-new entity in another state, it may need to re-paper commercial relationships, re-onboard with payment processors, re-negotiate financing covenants, and obtain fresh approvals where contracts restrict assignment. In contrast, redomestication generally allows the company to keep its existing FEIN, maintain its contracts, and preserve business credit history. For a detailed overview of this approach, consider the best way to move a company out of Virginia while keeping the same FEIN.

Common misconception: “Foreign registration moves the company”

One of the most common misconceptions is that registering as a foreign entity in the new state is the best way to move a company out of Virginia. It is not. Foreign qualification may grant authority to transact business in the new state, but it typically leaves the company domiciled in Virginia. As a result, the business may continue to face dual obligations—two sets of annual requirements, two sets of agency expectations, and a greater likelihood of administrative confusion when records are reviewed by banks, investors, or counterparties.

In addition, foreign registration is frequently pursued without a disciplined exit plan. Owners may believe they have “moved” their business when, legally, they have simply expanded. If the strategic goal is to relocate the entity’s home state, redomestication is generally the best way to move the company out of Virginia because it is structured to make the destination state the company’s new domicile. When the objective is a clean relocation rather than a second registration, the best way to move your Virginia company to a new state is redomestication.

Common misconception: “A merger is required to change domicile”

A second misconception is that a merger is the necessary or preferred solution. Mergers can be effective in certain contexts, but they are often more complex than required for a straightforward domicile change. A merger strategy typically requires forming a new entity in the destination state, preparing merger documentation, and satisfying statutory prerequisites that can be excessive where the sole objective is to change the home state of an existing entity.

Moreover, the operational disruption is often underestimated. Mergers can create avoidable administrative work involving account transitions and documentation demands from lenders, counterparties, and internal stakeholders. For many established entities, the best way to move a company out of Virginia is the method that minimizes structural change while maximizing legal continuity. Redomestication is specifically tailored for that purpose: it changes domicile without forcing the business into a “new company” posture that can be operationally expensive.

Procedural considerations that determine whether redomestication is the best way to move your company out of Virginia

Redomestication is powerful, but it is not a do-it-yourself shortcut. Determining whether it is the best way to move a company out of Virginia requires an entity-specific review of governance documents, owner approvals, and the legal compatibility between Virginia law and the destination state’s conversion statutes. For example, an LLC may require member consent under the operating agreement; a corporation may require board and shareholder action under its governing documents and applicable statutory rules. The correct approvals are not “nice to have”; they are the legal foundation that prevents later disputes among owners.

Additionally, the company’s compliance posture should be evaluated before filing. In practice, state agencies may require that an entity be in good standing prior to accepting conversion-related filings. There are also practical transition items that should be addressed in parallel, such as updating registered agent arrangements, confirming naming availability in the destination state, and preparing a post-approval checklist for banking, payroll, licenses, and internal records. These steps do not negate the benefit; they underscore why the best way to move the company out of Virginia is to pursue redomestication with experienced guidance and a documented plan.

Risk management: avoid accidental dissolution, taxable events, and contract disruption

From the perspective of legal risk and tax administration, the worst relocation outcome is not a delayed filing—it is an unintended transaction that triggers avoidable consequences. Businesses sometimes dissolve in Virginia and re-form elsewhere under the belief that they have chosen the simplest path. However, dissolution and reformation can create unnecessary complications, including interruption of contractual relationships, loss of entity history, and potential administrative confusion for payroll and banking systems.

Similarly, asset “moves” between entities can be mishandled, especially when owners do not appreciate how quickly a well-intended restructuring can become a compliance headache. The best way to move a company out of Virginia is generally the approach that reduces the likelihood of those self-inflicted problems. Redomestication focuses on continuity and, when executed correctly, avoids the operational disruption associated with dissolving and starting over. To proceed with the relocation method built around these continuity principles, review the best way to move a company out of Virginia without disrupting operations.

Conclusion: a disciplined domicile change is a strategic upgrade, not a clerical task

Relocating an established business is a strategic decision with legal, tax, and operational consequences. When owners have outgrown the Virginia tax environment, the Virginia legal system, or the Virginia business climate, the objective should be a legally clean transition that preserves the company’s identity and minimizes disruption. For most operating businesses seeking a true change of home state, redomestication is the best way to move the company out of Virginia because it is designed to relocate the entity itself—not create a substitute.

When continuity matters, statutory conversion is typically superior to foreign registration, merger, or dissolution-and-reformation. It is the method most aligned with the realities of running an ongoing enterprise: keeping the FEIN, preserving contracts, and maintaining the company’s existing footprint in the marketplace. To begin the process through the most efficient mechanism available, consult the best way to move your company out of Virginia via redomestication.

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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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