How to transfer my company out of Alabama

---

Start Your Redomestication Now

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.

Same Day

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.

120% money-back guarantee if we do not succeed.

Did you know? The average business that moves to a state without state-level income tax saves over $12,500 in taxes per year.

Still have questions? Schedule a free meeting with our attorney and CPA.

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

Start Your Redomestication Now

How to transfer a company out of Alabama without disrupting operations

When business owners ask, in practical terms, how to transfer their company out of Alabama, the central objective is typically continuity: preserving contractual rights, banking and vendor relationships, insurance policies, financing arrangements, and workforce stability while changing the entity’s legal domicile. In my experience as an attorney and CPA, the most costly mistakes occur when the owner treats the move as a simple administrative filing, rather than a coordinated legal and compliance transaction.

The most effective mechanism for transferring an Alabama entity to a new state is redomestication (also referred to as statutory conversion), because it moves the entity’s “home state” while generally allowing the business to retain its existing FEIN, its contractual footprint, and—in most cases—its existing name. For a detailed, step-by-step filing path, review how to transfer your company out of Alabama through redomestication and confirm eligibility for your entity type.

Why the question is not merely “where,” but “how” you exit Alabama

Owners frequently assume the question of how to transfer a company out of Alabama is solved by “registering in the new state.” That assumption overlooks a critical point: foreign registration is designed for companies that continue doing business in the original state. If the business has relocated and intends to discontinue Alabama operations, foreign registration can create unnecessary dual compliance, including annual filings and potential lingering tax exposure.

Conversely, a properly structured redomestication is designed to change domicile while minimizing operational disruption. It is therefore well-suited to owners who want a clean, enforceable transition away from Alabama’s ongoing administrative burdens, while maintaining the company’s legal identity and uninterrupted business history.

The business case for transferring an entity out of Alabama

Decisions about how to transfer a company out of Alabama are rarely driven by a single factor. Instead, the business case typically combines tax efficiency, administrative simplicity, and legal predictability. When those drivers are evaluated together, relocating an existing entity can materially improve cash flow and reduce owner distraction caused by compliance friction.

From a risk-management standpoint, the value of an orderly exit cannot be overstated. A migration that preserves the entity’s contractual continuity and avoids needless re-titling of assets can reduce downstream disputes with lenders, counterparties, and governmental agencies. To evaluate whether redomestication is appropriate for your specific situation, see options for transferring your company out of Alabama and consider the company’s current footprint and planned operations.

Exiting the Alabama tax environment: clarity, planning, and reduced friction

For many companies, the impetus to learn how to transfer their business out of Alabama is grounded in the desire to operate under a different state tax environment. Even when federal tax posture is unchanged, state-level exposure can shift meaningfully based on domicile, apportionment, and operational footprint. A well-executed redomestication supports a structured transition that aligns the company’s legal home with its actual center of operations.

However, tax results are never automatic. A frequent misconception is that “changing the state” alone ends all prior-state obligations. In reality, owners must coordinate the legal move with practical nexus realities—such as employees, inventory, property, and ongoing Alabama-sourced activity—to avoid unpleasant surprises. Redomestication provides the cleanest legal framework for the domicile shift, but proper follow-through is what prevents residual compliance issues.

Why redomestication is the best answer to “how do I transfer my company out of Alabama?”

When clients ask how to transfer their company out of Alabama, the superior solution is typically the one that preserves enterprise value. Redomestication is intentionally designed to maintain the entity’s continuity rather than forcing the owner to “start over.” This continuity is not merely convenient; it is often essential to preserving financing terms, licensing, vendor accounts, and customer contracts that reference the existing entity.

Redomestication is also strategically superior because it avoids the avoidable complications that arise in asset transfers, entity dissolutions, and multi-entity structures. Where owners attempt a piecemeal approach—forming a new entity, transferring assets, closing accounts, and hoping counterparties cooperate—the legal and tax complexity can escalate quickly. For a direct path, consult how to transfer a company out of Alabama using redomestication and proceed with a unified filing strategy.

Continuity advantages: contracts, FEIN, and name preservation

The practical reason redomestication so often answers the question of how to transfer a company out of Alabama is that it is built to preserve the company’s core identifiers and relationships. Most notably, owners can generally retain the same federal employer identification number (FEIN), avoiding a cascade of downstream changes with payroll providers, banks, merchant processors, and tax account registrations.

Equally important, redomestication typically preserves the company’s existing contracts because the entity itself continues; the “home state” changes, but the company is not replaced by a newly formed entity. This distinction matters in real life. Many commercial agreements contain assignment clauses, change-of-control provisions, or approval requirements that become problematic when owners attempt to “move” by forming a new entity and transferring assets into it. Redomestication reduces those disruptions by maintaining continuity rather than engineering a substitute.

Common misconceptions that lead to expensive Alabama exit mistakes

Owners searching for how to transfer their company out of Alabama often encounter incomplete guidance that overemphasizes quick filings and underemphasizes legal consequences. One common misconception is that dissolving the Alabama entity is a prudent first step. Dissolution is frequently the worst possible starting point because it can create contract default risk, licensing interruptions, and avoidable administrative clean-up—particularly if the business is still operating and needs a continuous entity for payroll, banking, insurance, or ongoing claims management.

Another misconception is that foreign registration in the new state accomplishes a “move.” In many cases, it does not. Instead, it creates a dual-state compliance posture: the company remains an Alabama entity while also registering elsewhere. That structure may be appropriate when the company intends to keep meaningful Alabama operations. It is generally inefficient when the objective is a genuine exit from Alabama as the home state.

Procedural considerations that sophisticated owners address upfront

How to transfer a company out of Alabama is not simply a matter of filling out forms; it is a coordinated set of decisions that should be made before filings occur. Examples of issues that routinely require attention include: confirming entity eligibility for conversion, aligning the company’s governing documents with the destination state’s requirements, verifying name availability, and preparing member/shareholder approvals and certifications consistent with the company’s internal rules.

Additionally, owners should plan for post-approval steps that protect continuity—such as updating the company’s registered agent and principal office records, ensuring banking and merchant providers recognize the continuation of the entity, and confirming that licenses, permits, and insurance policies reflect the new domicile without triggering unnecessary underwriting events. These details are precisely where do-it-yourself approaches and generic document services tend to fail, because they do not tailor the process to the company’s fact pattern and operational realities.

Conclusion: a controlled, compliant transfer out of Alabama protects value

If the objective is to understand how to transfer a company out of Alabama while protecting contracts, preserving the FEIN, and minimizing operational disruption, redomestication is the mechanism that most directly accomplishes those goals. It is designed for continuity and for business owners who want the benefits of a new state domicile without the artificial complexity of mergers, dissolutions, or asset shuffling.

For business owners prepared to proceed with a legally sound and efficient transition, begin with how to transfer your company out of Alabama via redomestication. A properly executed redomestication is not merely a filing; it is an investment in stability, compliance, and long-term operational efficiency.

Start Your Redomestication Now

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.

Start Your Redomestication Now