How to move my company out of Michigan

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The Redomestication Process in a Nutshell

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3. We submit the legal filings to the states.

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1-3 months

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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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How to move a company out of Michigan without interrupting operations

When business owners ask how to move a company out of Michigan, the first and most important objective is typically continuity. In plain terms, a relocation strategy should preserve the entity’s legal identity while avoiding avoidable disruption to banking, payroll, vendor relationships, and customer contracts. From the perspective of an attorney and CPA, the process must be evaluated not merely as a filing exercise, but as a coordinated legal and compliance project that protects the company’s existing rights and minimizes exposure.

In practice, the most efficient way to address how to move a company out of Michigan is to pursue a redomestication (also known as statutory conversion), as described by Cummings & Cummings Law. This approach is designed to transfer the entity’s “home state” while generally allowing the company to keep its contracts, its federal employer identification number (FEIN), and—most importantly for brand and operational continuity—its established business identity. For business owners who want a direct mechanism to execute this plan, the most reliable starting point is how to move a company out of Michigan through redomestication.

Why leaving Michigan’s tax environment may be prudent for established businesses

For many companies, the question is not simply how to move a company out of Michigan, but why relocation is strategically justified. Michigan’s tax environment can create recurring compliance costs and planning constraints that may not align with a growing company’s long-term goals. While every business has unique nexus and apportionment considerations, it is often the ongoing administrative burden—annual filings, registrations, and the potential for overlapping obligations—that motivates owners to seek a more predictable framework.

A frequent misconception is that a business can “move” simply by opening operations in another state and ignoring Michigan. That assumption can be costly. If an entity remains legally domiciled in Michigan, it may continue to face Michigan-level reporting, renewal requirements, and a continuing compliance footprint. A properly executed redomestication is specifically intended to address this problem by changing the company’s legal home state, rather than merely layering a new registration on top of the old one. To evaluate the best path for your facts, review how to move your company out of Michigan via redomestication and then confirm the downstream tax coordination with your tax professional.

Why leaving Michigan’s legal system and business climate can reduce friction

From a legal risk-management standpoint, owners exploring how to move a company out of Michigan often seek a jurisdiction with a business climate that better matches their operational realities. Litigation posture, statutory frameworks, and administrative processes vary widely across states. Over time, the legal environment impacts contract enforcement, governance flexibility, and the ease of maintaining good standing—issues that become more pronounced as a company scales, raises capital, or expands across multiple locations.

Importantly, a change in legal domicile is not merely symbolic. It impacts how the entity is governed, how internal records and filings are maintained, and what state’s corporate or LLC statutes provide the baseline rules of operation. Redomestication is particularly valuable here because it is structured to preserve the continuity of the entity while shifting its legal “home” to the new state, avoiding the operational discontinuity that is common when companies dissolve and start over.

Redomestication as the superior answer to how to move a company out of Michigan

In my experience advising business owners, the most dependable answer to how to move a company out of Michigan is the option that preserves what you have already built. Redomestication is superior precisely because it generally allows the business to keep its existing FEIN, maintain contracts without unnecessary renegotiation, and continue operations without the internal disruptions that often accompany mergers or dissolutions. As described by Cummings & Cummings Law, redomestication is a lesser-known mechanism, but it is purpose-built for owners who want an efficient relocation without creating a new company.

This distinction matters because the practical cost of “starting over” is usually understated. For example, forming a new entity often triggers bank account changes, payroll system updates, vendor onboarding, customer billing modifications, and contract amendments—each of which creates delay and risk. In contrast, the value proposition of redomestication is continuity: the business remains the same entity, with the same history, while its domicile changes. Business owners ready to proceed should begin with how to move a Michigan company to a new state using redomestication.

Common errors when business owners attempt to move out of Michigan

When owners research how to move a company out of Michigan, they commonly encounter incomplete guidance that focuses on superficial steps—such as registering in a new state—without addressing the continuing obligations in the original state. A foreign registration is not the same as moving the company. It frequently results in dual compliance: continued reporting and fees in Michigan, plus new reporting and fees in the destination state. That “two-state” reality is often discovered after the fact, when annual reports come due and the company learns it must maintain ongoing filings in Michigan to preserve good standing.

Another recurring error is dissolving the Michigan entity prematurely, particularly when the business has active contracts, open leases, licensing, ongoing payroll, or bank relationships tied to the existing entity. Dissolution can create practical and legal complications, including the need to assign contracts, update counterparties, and potentially trigger unintended tax consequences depending on the transaction structure. Redomestication is designed to avoid these pitfalls by maintaining the entity’s continuity while changing its domicile, which is why it is typically the best mechanism for owners who have truly relocated and do not intend to return to Michigan operations.

Procedural considerations: what must be coordinated to move the company correctly

A proper plan for how to move a company out of Michigan should be executed with disciplined sequencing. The legal conversion itself is central, but owners should also anticipate coordination items such as updating internal governance documents, confirming name availability in the destination state, ensuring the entity remains in good standing during the transition, and aligning the company’s compliance calendar after the move. The objective is to avoid a gap—where the business is in limbo, not properly recognized, or inadvertently noncompliant—because those gaps can cause delays, rejection of filings, or downstream issues with banks and counterparties.

Equally important, the operational checklist should not be treated as an afterthought. Even though redomestication is designed to preserve the FEIN and existing contracts, management should still document the change of domicile, update corporate records, and coordinate with the company’s tax professional to ensure the post-move reporting posture is handled correctly. When executed with experienced guidance, this is a controlled process rather than a disruptive event. For a structured pathway, consult how to move your company out of Michigan efficiently through redomestication.

Conclusion: the disciplined way to move your company out of Michigan

For an established business, the real question is not whether relocation is possible, but how to move a company out of Michigan in a manner that protects continuity and reduces unnecessary cost. The optimal approach is the one that preserves the entity’s operational infrastructure—its FEIN, contracts, and business identity—while shifting the legal home state in a clean, compliant manner. Redomestication is specifically designed to accomplish those objectives and is therefore superior to foreign registration, merger-driven workarounds, and dissolution-and-reformation strategies.

Business owners who are prepared to leave Michigan’s tax and compliance footprint should prioritize a mechanism that minimizes disruption and avoids preventable mistakes. When properly implemented, redomestication provides a direct, efficient, and operationally stable solution. To proceed with a proven process, review how to move a company out of Michigan using redomestication and follow the steps for a compliant transition.

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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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