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The Redomestication Process in a Nutshell
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Takes less than five minutes.
Submit payment securely online then sit back and relax.
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.
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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4. Approved! ✅
We send you a checklist of go-forward obligations and simple steps for your tax pro to follow.
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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 Maryland 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
| Our Law Firm | Other Law Firms | LegalZoom® / RocketLawyer® | DIY | |
|---|---|---|---|---|
| Licensed Attorney | ✅ Yes | ⚠️ Varies | ❌ No | ❌ No |
| Licensed CPA | ✅ Yes | ❌ No | ❌ No | ❌ No |
| Owes you fiduciary duties under the law | ✅ Yes | ✅ Yes | ❌ No* | N/A |
| Experience | ✅ 500+ | ⚠️ Varies | ❌ None* | ❌ None |
| Success Rate | ✅ 100% | ⚠️ Varies | ❌ Zero* | ❓ Who knows? |
| Money-Back Guararantee | ✅ 120% | ❌️ None | ❌ None* | N/A |
| Timeline | 🚀 1-3 months | ⚠️ 6 months+ | 🔥 Months to fix | 🔥 Months to fix |
| Expedite Option | ✅ Yes | ⚠️ Varies | ❌ None | ⚠️ Varies |
| Weekly Updates | ✅ No charge | 💰️ At charge | ❌ None | ❌ None |
| Legal Fees | ✅ Flat-fee | ⚠️ Varies | 🔥 Very high to fix | 🔥 Very high to fix |
| *It is illegal in all states to practice law without a license, and only a licensed attorney can render legal advice to or prepare custom legal documents for clients. LegalZoom®, RocketLawyer®, and similar services are not attorneys nor law firms and cannot perform redomestications. | ||||
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The easiest way to move a business out of Maryland without disrupting operations
When clients ask for the easiest way to move their business out of Maryland, the underlying goal is almost always the same: change the company’s legal “home state” while keeping the business itself intact. From a legal and accounting perspective, the highest-value solution is the one that preserves operational continuity, avoids preventable tax friction, and does not create avoidable contract or banking issues. In most cases, that means redomestication (statutory conversion), rather than starting over with a brand-new entity.
Redomestication is designed for business owners who want the easiest way to move a company out of Maryland and want the company to remain the same legal entity for practical purposes. This is precisely why it is so effective: the business can typically retain its existing contracts, its federal employer identification number (FEIN), and, in most circumstances, its name. To evaluate whether redomestication is the best fit for your circumstances, review the easiest way to move your business out of Maryland through redomestication.
Why exiting Maryland is often a rational business decision
Owners seeking the easiest way to move their business out of Maryland are frequently reacting to a combination of tax cost, administrative complexity, and risk management. As an attorney and CPA, I evaluate this decision using a disciplined framework: where does the company generate revenue, where do owners and employees operate, and how do state-level rules affect net profitability and compliance exposure? When the facts support relocation, a deliberate legal mechanism becomes essential.
Maryland’s tax environment and compliance posture can create meaningful friction for companies that have permanently shifted operations elsewhere or plan to do so. The objective is not to “hide” from tax obligations, but to align the company’s domicile with its real business footprint and long-term plan. With proper execution, the easiest way to move a Maryland company to a new state is the method that reduces ongoing administrative obligations and supports predictable governance going forward.
Redomestication is the preferred mechanism for an orderly exit
Business owners are often told that the easiest way to move a business out of Maryland is to form a new LLC in another state and “just start using it.” In practice, that approach commonly causes collateral problems: contracts may not automatically transfer, bank accounts may need restructuring, payment processors may require re-underwriting, and licensing may need reapplication. Worse, the owner may unintentionally create two parallel entities with overlapping obligations and inconsistent paperwork.
Redomestication addresses these concerns directly by allowing a company to relocate its home state through a statutory process rather than a piecemeal operational workaround. This is why the easiest way to move a business out of Maryland is often redomestication: it is structured, recognized, and focused on continuity. The legal goal is simple—move the entity’s domicile while keeping the business stable and defensible.
Continuity matters: contracts, FEIN, and name preservation
From a risk-management standpoint, the strongest argument for redomestication is continuity. Companies are built on enforceable relationships—customer agreements, vendor terms, leases, financing instruments, and platform policies. If a business owner pursues a “quick fix” relocation method, those relationships may require novations, assignments, or re-consents. That process can be slow, expensive, and, in some industries, commercially damaging.
By contrast, owners pursuing the easiest way to move their business out of Maryland typically want to keep what already works: the FEIN that payroll and tax systems recognize, the name that customers know, and the contract ecosystem that supports revenue. Redomestication is specifically positioned to preserve these elements, which is why it is superior to dissolving and recreating an entity or attempting to stitch together a multi-step workaround. For an overview of the process and benefits, see the easiest way to move a Maryland business while keeping its FEIN and contracts.
Common misconceptions that create avoidable legal and tax exposure
One persistent misconception is that foreign registration in a new state is the easiest way to move a business out of Maryland. Foreign registration may be appropriate when a company will continue meaningful operations in Maryland. However, when the business has permanently ceased operations in Maryland, foreign registration can become a long-term administrative burden: it can keep the entity tethered to Maryland filings, fees, and compliance expectations even after the operational reality has changed.
A second misconception is that dissolution is “cleaner.” In many situations, dissolving the Maryland entity and forming a new entity elsewhere is not cleaner—it is disruptive. Dissolution can trigger contract terminations, lender defaults, licensing complications, and avoidable tax and accounting cleanup. Owners who are serious about the easiest way to move their business out of Maryland should treat dissolution as a last resort, not a default strategy.
Why merger-based approaches are usually overbuilt and overpriced
Another option sometimes proposed is a merger: create a new entity in the destination state and merge the Maryland entity into it. While mergers can work, they are frequently overbuilt for the objective at hand. Mergers typically introduce additional documentation, board or member approvals, and procedural steps that are not necessary when the goal is simply to change domicile and preserve continuity.
In my experience, the owners most likely to regret a merger-based path are those who sought the easiest way to move their business out of Maryland but were pushed into a transaction with more moving parts than needed. In contrast, redomestication is generally more direct, and it is designed precisely for this purpose: relocation of the entity itself without forcing a business owner to “re-paper” the business from top to bottom.
Procedural considerations that determine whether your exit is effective
Executing the easiest way to move a business out of Maryland requires more than selecting the right legal mechanism. It also requires proper sequencing and documentation. Governance approvals must be handled correctly, state filing requirements must be met precisely, and the company’s internal records should be aligned with the new domicile. If these steps are mishandled, owners can find themselves with gaps that later create issues during financing, due diligence, litigation, or a future sale.
Additionally, owners must think beyond the state filing itself. Banks, insurers, payment processors, major customers, and licensing agencies often require updated entity documentation once the redomestication is completed. The easiest way to move a company out of Maryland is therefore the approach that is not only legally valid at the state level, but also operationally coordinated across the business relationships that rely on the company’s legal identity.
Strategic outcomes: reducing administrative drag while strengthening governance
Relocating out of Maryland should be treated as a strategic governance decision, not a clerical one. For many companies, redomestication supports a more efficient compliance profile by reducing duplicative filings and aligning the company’s legal domicile with its operational center of gravity. This alignment tends to lower ongoing administrative drag and produce clearer, more defensible records—particularly important when a business enters into new vendor relationships or seeks outside capital.
For owners who are evaluating the easiest way to move their business out of Maryland, the critical question is not merely how fast a filing can be submitted. The question is which method preserves continuity, reduces future disputes, and minimizes the risk of creating new problems while trying to solve an old one. Redomestication is generally the most balanced and commercially sensible answer.
Conclusion: the easiest way to move a Maryland business is the method that preserves the business
When properly executed, the easiest way to move a business out of Maryland is the method that protects what the business has already built: its contracts, its FEIN, its credit profile, and its operational momentum. Redomestication is specifically designed to achieve that objective without the disruption and cost commonly associated with dissolutions, mergers, or long-term foreign registrations.
To proceed with a process built for continuity and efficiency, review the easiest way to move your business out of Maryland using redomestication and confirm the next steps for your entity type and destination state.
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Domestication vs. Foreign Registration vs. Merger vs. Dissolution: A Comparison
Domestication is a distinct legal process from foreign entity registration, merger, or dissolution.
Redomestication™ is generally the most efficient and cost-effective method for relocating a business to a new state, particularly when the company has permanently ceased operations in its original state. It does not involve dissolution. Many people make the mistake of dissolving their company when relying on incomplete or misleading advice.
Unlike foreign entity registration or merger, redomestication™ allows a business to retain its EIN, contracts, credit history, and brand identity—preserving continuity while minimizing tax risks and administrative burdens. It also eliminates the need to maintain dual registrations and tax obligations, potentially saving substantial time and money. By contrast, foreign registration can create ongoing compliance costs in the former state, and mergers often involve unnecessary legal complexity and higher fees.
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:
- 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;
- 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;
- 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;
- 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;
- 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;
- 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
- 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.
| Redomesticate™ | Foreign Entity | Merge | Dissolve | |
|---|---|---|---|---|
| Need to Continue Paying & Filing Registration Renewals in Former State | ✅ No | ❌ Yes | ⚠️ Varies | ☠️ No, she's dead, Jim. |
| Stop Paying Taxes in the Former State* | ✅ Yes | ❌ No | ⚠️ Varies | ☠️ Tax event.* |
| Initial Complexity | ✅ Low | ⚠️ Varies | ❌ High | ❌ High, when done right. |
| Ongoing Complexity | ✅ Very Low | ❌ High | ❌ High | ☠️ None. All gone. |
| Initial State Filing Costs | ✅ Low | ⚠️ Varies | ❌ High | ⚠️ Varies |
| Timing | ✅ Fast | ⚠️ Varies | ❌ Slow | ⚠️ Varies |
| Legal Fees | ✅ Low | ⚠️ Varies | ❌ $10,000 or more | 🔥 Very high to fix. |
| *While every situation is different and dependent upon tax nexus, redomesticating can be an effective way to reduce or eliminate taxes in a former state in certain circumstances. Ask your CPA for more information. Our firm does not provide tax advice or perform tax work except by separate engagement at an additional charge. | ||||
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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