How to move my company out of Alabama

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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.

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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 Alabama 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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How to move your company out of Alabama: the strategic objective and the legally clean path

As counsel who routinely evaluates entity migrations through both a legal and accounting lens, I view the question of how to move a company out of Alabama as a governance and continuity problem first, and a tax problem second. Owners typically want to exit Alabama’s tax environment, reduce administrative friction, and place their entity under a more favorable statutory framework—without sacrificing operational momentum, contract enforceability, or banking continuity.

That is precisely why redomestication™ (statutory conversion, as described on the firm’s redomestication page) is the preferred mechanism when the business is permanently relocating. By changing the company’s “home state” while preserving the same legal entity, redomestication™ generally allows the company to keep its existing FEIN, maintain its contracts, and, in most cases, continue operating under the same name. For businesses seeking a decisive, efficient transition, how to move a company out of Alabama via redomestication™ is not a marketing slogan; it is a disciplined compliance strategy.

Why businesses seek to leave Alabama: tax, legal exposure, and business climate

When owners ask how to move their company out of Alabama, they are frequently reacting to a cumulative burden rather than a single issue. Tax costs and reporting obligations can compound over time, particularly as a business grows beyond its original footprint. A company that once operated locally may become multi-state, remote, or asset-light, and the original formation state may no longer align with the company’s operational reality.

In addition, the “business climate” concerns are often practical and immediate: administrative complexity, compliance uncertainty, and the desire for clearer statutory rules governing fiduciary duties, member rights, and dispute resolution. While every jurisdiction has its own risks, many owners decide that the cost-benefit analysis favors a new domicile. If the company’s Alabama operations have ended or will end, the rational next step is to pursue how to move your company out of Alabama with redomestication™ rather than maintaining a long-term compliance tail in a state that no longer serves the enterprise.

Redomestication™ as the best answer to how to move a company out of Alabama

Redomestication™ is fundamentally different from “starting over.” If the objective is to move the company’s legal home from Alabama to a new state while preserving continuity, redomestication™ is designed for exactly that purpose. It is not a dissolution and re-formation, and it is not a merger used as a workaround. It is a statutory pathway intended to move the entity itself—its legal identity—into a new jurisdiction.

For owners evaluating how to move their company out of Alabama, the operative advantage is continuity. Because the same entity continues to exist after the move, redomestication™ is positioned to preserve key operational assets that commonly break during other transactions: existing contractual relationships, vendor approvals, financing arrangements, and internal governance history. In practice, this means fewer consent requests, fewer banking disruptions, and fewer “please re-paper everything” demands from counterparties—results that are typically unobtainable when the company is dissolved and recreated.

Continuity benefits: contracts, FEIN retention, and name preservation

When business owners research how to move a company out of Alabama, they often underestimate the downstream impact of changing the entity itself. A “new company” can trigger contract assignment provisions, lender underwriting re-approval, vendor onboarding resets, and even problems with payment processors. Redomestication™, by contrast, is structured to keep the company intact while changing its domicile, which substantially reduces the likelihood of those avoidable disruptions.

Three continuity outcomes are especially important. First, the ability to keep the FEIN eliminates a common tax and payroll disruption point and reduces the risk of operational confusion across payroll providers, benefits administrators, and IRS account records. Second, maintaining existing contracts is often mission-critical, particularly for companies with long-term customer agreements, recurring service contracts, or key supply arrangements. Third, the ability in most cases to keep the same company name protects goodwill and brand equity that can be expensive to rebuild. For those prioritizing seamless execution, how to move your company out of Alabama without changing your FEIN or contracts is best addressed through redomestication™.

Common misconceptions about how to move your company out of Alabama

The most expensive misconception is the belief that the “cleanest” way to exit Alabama is to dissolve the entity and form a new one elsewhere. Dissolution may appear straightforward, but it can create collateral consequences: contract terminations, licensing complications, financing defaults, and, in the wrong fact pattern, avoidable tax events. It also places the burden on the owner to recreate operating authority, reset accounts, and re-paper relationships that took years to build.

A second misconception is that foreign registration “solves” the problem. Foreign qualification can be appropriate when the company will continue meaningful operations in Alabama, but it does not accomplish the objective of moving the entity’s home state. Instead, foreign registration often results in dual compliance—fees, reports, registered agent obligations, and potential tax filings—precisely the administrative friction owners are trying to escape. Accordingly, when the intent is a permanent relocation, the more defensible approach for how to move a company out of Alabama is to pursue a domicile change through redomestication™ rather than accept a perpetual two-state compliance burden.

Procedural and documentation considerations when moving a company out of Alabama

Owners who are serious about how to move their company out of Alabama should treat the matter as a formal legal transaction, not a filing shortcut. Entity migrations implicate governing documents, owner approvals, state-level conversion mechanics, and the company’s internal recordkeeping discipline. Even when the statutory pathway is efficient, the process must be executed with accuracy to avoid post-move defects that can complicate financing, due diligence, or a future sale.

From a risk-management standpoint, the most frequent vulnerabilities arise from incomplete planning: mismatched entity types, failure to coordinate owner consents, and inconsistency between formation documents and operational reality. Professional handling mitigates these issues by aligning the conversion steps with what the company actually is (and how it actually operates), ensuring proper authorizations, and managing state submissions to completion. If the goal is to implement how to move a company out of Alabama while preserving corporate hygiene for lenders and investors, disciplined documentation is not optional—it is the transaction.

Why “do-it-yourself” approaches fail in entity relocations

DIY attempts frequently fail because owners conflate three different concepts: operating in a new state, registering in a new state, and changing the company’s legal home state. Each has different consequences. A company can begin operating elsewhere without changing its domicile, but that may create ongoing Alabama compliance and tax obligations. Conversely, changing the domicile incorrectly can create gaps in authority, inconsistencies in records, or delays that interrupt time-sensitive business goals.

In addition, the “quick fix” solutions commonly found online tend to omit the crucial continuity objectives that drive most relocations: preserving contracts, preserving the FEIN, and maintaining the company’s identity in a way that avoids operational disruption. Redomestication™ is specifically positioned to protect those continuity objectives, which is why how to move your company out of Alabama through redomestication™ should be evaluated as a primary strategy, not a last resort.

Why redomestication™ is superior to foreign registration and merger for leaving Alabama

Foreign registration often produces the worst of both worlds: the company “moves” operationally, yet remains tethered to Alabama legally and administratively. That can mean continuing annual report obligations, continuing registered-agent requirements, and a lingering compliance profile that complicates bookkeeping and multi-state tax coordination. When the business has truly left Alabama, continuing to maintain an Alabama-centered legal home is frequently inconsistent with the company’s reality and goals.

Merger strategies, while sometimes workable, typically introduce unnecessary complexity. Mergers require planning, additional documentation, and, in many cases, more expense. They can also present unexpected friction with contractual anti-assignment provisions and third-party consent requirements. Redomestication™ generally accomplishes the same core objective—changing the company’s home state—while maintaining the existing entity, preserving the FEIN, and minimizing operational disruption. For that reason, when an owner asks how to move a company out of Alabama efficiently, the most prudent answer is often a properly executed redomestication™.

Conclusion: the most defensible answer to how to move a company out of Alabama

For an established LLC, corporation, or partnership that has permanently relocated, the central business question is not merely how to move the company out of Alabama, but how to do so without breaking what already works. Contracts, payroll systems, bank relationships, brand continuity, and the company’s federal identity are foundational assets. A transaction that sacrifices them in exchange for a perceived shortcut is rarely a bargain.

Redomestication™ provides a disciplined, continuity-focused path that aligns with the objectives most owners actually have: leaving Alabama’s tax environment and legal domicile behind while keeping the business intact. To proceed with how to move your company out of Alabama using redomestication™, the appropriate next step is to follow the firm’s process and ensure the filings are completed correctly the first time.

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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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