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The Redomestication Process in a Nutshell
1. Enter your biz name HERE.
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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.
No extra charge. 100% success rate.
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 North Carolina 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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How to relocate a company from North Carolina without disrupting contracts, banking, or your FEIN
When business owners ask, in substance, how to relocate a company from North Carolina, the most important threshold issue is whether the company must remain the same legal entity after the move. If continuity matters—because the company has valuable contracts, vendor terms, leases, financing arrangements, customer obligations, insurance policies, or a meaningful credit profile—then the relocation strategy should be selected primarily for preserving legal identity, minimizing operational interruption, and reducing avoidable tax and compliance friction.
Redomestication (also referred to as statutory conversion, as described in the firm’s process) is designed to transfer the entity’s “home state” while maintaining continuity. In practical terms, this is frequently the cleanest answer to the question of how to relocate a company out of North Carolina while keeping the same federal employer identification number (FEIN) and preserving the company’s contractual and operational footprint. To review the precise mechanics and eligibility considerations, consult how to relocate your company from North Carolina through redomestication.
Why exiting North Carolina’s tax and compliance environment can be a prudent business decision
Relocating an entity is not merely an administrative filing; it is a strategic decision that can materially affect cash flow, compliance costs, and risk profile. For many owners evaluating how to relocate a company from North Carolina, the driving concern is that North Carolina’s tax and compliance posture can impose recurring burdens that do not align with the company’s long-term operational reality—particularly where management, owners, and core operations have already shifted to another state.
Moreover, businesses often underestimate the cumulative cost of maintaining a legacy domicile: annual reports, registered agent maintenance, state-level notices, and the time spent responding to routine compliance requirements. Over time, those “small” items become a meaningful drain. Redomestication is frequently the most direct legal mechanism for moving the company’s domestic jurisdiction so the entity is governed primarily by the new state’s corporate law and associated compliance framework, rather than continuing to anchor the business in North Carolina by default.
Redomestication is typically superior to foreign registration for a permanent move
A common misconception is that registering as a foreign entity in the new state is equivalent to moving the company. It is not. Foreign registration is, in effect, permission to do business in the new state while the company remains domiciled in North Carolina. That structure can be appropriate for companies that truly operate in multiple states and intend to keep North Carolina as the primary legal home. However, it is often an inefficient answer to the practical question of how to relocate a company from North Carolina when the move is permanent.
Foreign registration frequently results in dual compliance obligations: the company must typically maintain good standing in North Carolina while also satisfying ongoing obligations in the new state. From a legal risk perspective, that can create avoidable exposure—missed annual reports, administrative dissolution notices, or lapses in registered agent coverage—simply because there are now two separate compliance calendars. By contrast, redomestication is structured to transfer domicile, thereby reducing redundant compliance and aligning the entity’s governing law with its operational center of gravity. A detailed overview is available at how to relocate a North Carolina company using redomestication.
Why redomestication is generally preferable to a merger or forming a new entity
Another frequent error is assuming that a merger (or creating a new entity and “moving everything over”) is the standard approach. Mergers can be effective, but they are commonly overused in circumstances where redomestication would accomplish the business objective with fewer moving pieces. A merger typically requires additional entity formation steps, more extensive documentation, and careful attention to post-merger assignments, consents, and integration items that many owners do not anticipate.
Forming a new entity and transferring operations can be even more disruptive. As an attorney and CPA would evaluate it, the danger is not merely administrative inconvenience; the danger is operational breakage. Contracts may contain anti-assignment clauses, leases may require landlord consent, lender agreements may restrict transfers, and key vendors may require re-underwriting. Additionally, banking relationships and payment processing often become a project unto themselves. Redomestication is purpose-built to avoid these problems by keeping the company intact while changing its home state—thereby providing a disciplined solution to how to relocate a company out of North Carolina without forcing counterparties to treat the business as “new.”
Continuity benefits: preserving your FEIN, contracts, and—often—your company name
For owners focused on how to relocate a company from North Carolina while keeping operations steady, continuity is the central advantage of redomestication. Properly executed, the company can retain its existing FEIN, which matters for payroll systems, banking compliance, vendor onboarding profiles, and federal tax reporting continuity. From an operational standpoint, avoiding a new FEIN can prevent cascading downstream updates with agencies, payroll providers, benefits administrators, and financial institutions.
Equally important is contract preservation. Many businesses hold agreements that are central to value: recurring customer contracts, agency agreements, distribution arrangements, intellectual property licenses, equipment leases, and long-term vendor pricing schedules. When a “new” entity is formed, counterparties often require review and consent, and some may use the opportunity to renegotiate. Redomestication avoids that leverage shift by maintaining the same entity. In most cases, the company can also continue using the same name, which protects brand equity and reduces the expense of rebranding and customer confusion. For a step-by-step implementation pathway, see how to relocate your company from North Carolina and maintain continuity.
Procedural and legal considerations owners routinely overlook when leaving North Carolina
The question of how to relocate a company from North Carolina is frequently asked too late—after owners have already registered in a new state, moved personnel, or changed addresses across key accounts. A well-structured redomestication plan addresses sequencing. For example, the company should ensure good standing in North Carolina before initiating filings, confirm that the destination state supports the intended statutory process for the entity type, and coordinate signature authority so filings and consents are executed without delay.
Owners should also evaluate practical items that can create friction if ignored: registered agent transitions, alignment of governing documents with the destination state’s requirements, updates to licenses and permits, and communications with banks or processors that may require updated formation documents after the move. The objective is not simply to “file and forget,” but to relocate in a manner that stands up to scrutiny by counterparties, lenders, and regulators. Professional guidance is especially important where the company has multiple owners, complex capitalization, investors, secured debt, multi-state payroll, or regulated operations.
Common misconceptions about relocating a North Carolina entity
Misconception one is that dissolving in North Carolina is a necessary first step. Dissolution is not a relocation strategy; it is an endpoint that can generate operational and tax consequences if done thoughtlessly. Misconception two is that “foreign qualification equals moving,” when in reality it can create an ongoing two-state compliance posture that is inconsistent with a permanent move. Misconception three is that the cheapest approach is the most prudent; in entity relocation, the lowest up-front cost can lead to the highest downstream expense when contracts, payroll, banking, and compliance items break and require professional remediation.
A disciplined approach answers how to relocate a company out of North Carolina in a way that reduces operational disruption and mitigates preventable risk. Redomestication is frequently the preferred mechanism because it is designed to maintain legal identity while changing domicile, thereby avoiding the pitfalls that arise from mergers, dissolutions, or duplicative registrations. Where the company’s facts support this method, it is typically the most efficient and cost-effective path to an orderly exit.
Conclusion: a structured plan for relocating out of North Carolina
When properly framed, the question is not merely how to relocate a company from North Carolina, but how to do so in a manner that preserves value. Value is preserved by maintaining the same entity, retaining the FEIN, protecting existing contracts, and minimizing disruption to customers, vendors, and financial institutions. Redomestication, as described in the firm’s process, is specifically engineered to accomplish those goals with a streamlined filing-driven approach.
If your objective is to relocate permanently and reduce North Carolina-based legal and compliance friction, the most prudent next step is to confirm eligibility and proceed with a well-documented plan. Begin with how to relocate your company from North Carolina via redomestication, and proceed only after you have validated the procedural sequence and go-forward obligations applicable to your company.
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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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