Legal way to move a company out of Arizona

---

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 Arizona 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

The legal way to move a company out of Arizona: why redomestication is the preferred mechanism

When a business owner seeks a legal way to move a company out of Arizona, the analysis should begin with a threshold question: are you merely expanding into another state, or are you permanently relocating the company’s legal domicile and operational center? In my experience as both an attorney and a CPA, many owners incorrectly assume that “moving” the business is a matter of changing addresses, obtaining a new business license, or registering as a foreign entity elsewhere. Those steps may be appropriate for multi-state operations, but they do not typically accomplish a true change in domicile.

For a company that has ceased (or will cease) meaningful operations in Arizona, redomestication—also referred to on this page as statutory conversion—often provides the most direct and cost-effective legal method for moving a company out of Arizona while preserving continuity. Properly executed, redomestication is designed to maintain the same entity, rather than creating a successor entity that must re-paper contracts, re-establish banking, and reintroduce itself to counterparties.

Accordingly, business owners considering an Arizona exit strategy should review a legal way to move a company out of Arizona through redomestication and evaluate it against foreign registration, merger transactions, or dissolution-and-reformation approaches. Each alternative has its place; however, most alternatives introduce avoidable administrative burdens and, in certain scenarios, unnecessary tax and legal risk.

1) Business continuity: the decisive advantage of a legal move out of Arizona

A principal reason redomestication is frequently the superior legal way to move a company out of Arizona is that it is structured to preserve continuity. The practical consequences of continuity are significant: vendors continue invoicing the same entity, customers can continue paying the same entity, and internal governance can proceed without the operational disruption that often follows a dissolution-and-reformation strategy.

Continuity matters because third-party relationships are typically written to a specific legal entity, not a “business concept.” If a company dissolves and a new company is formed in another state, many contracts technically become contracts with the wrong party unless amended or assigned. Assignments can require consent, and consent is not guaranteed. Redomestication is designed to avoid that contract-by-contract re-papering exercise by maintaining the existing company as the same legal person, now domiciled in the new state.

For owners who have invested substantial time in building operational momentum, choosing the legal way to move a company out of Arizona without disrupting operations should be viewed not as a luxury, but as a risk-management decision. A relocation should improve the business climate and reduce administrative drag, not create a self-inflicted interruption in revenue or performance.

2) Preserve the FEIN and reduce avoidable tax friction during an Arizona exit

From a tax administration perspective, one of the most compelling reasons redomestication is the preferred legal path to move a company out of Arizona is the ability to keep the existing federal employer identification number (FEIN). In practice, the FEIN often functions as the company’s federal identity. When owners form a new entity rather than redomesticating, the new entity frequently requires new payroll accounts, new federal and state registrations, and updated vendor onboarding documentation.

Moreover, a poorly planned “new company” approach can create unintended tax complexity. Business owners may attempt to transfer assets, contracts, or customer relationships from the Arizona entity to a new entity in the destination state. Depending on what is transferred and how it is documented, those transfers can raise questions that should have been addressed proactively—particularly where appreciated assets, intellectual property, or liabilities are involved. Redomestication is intentionally designed to minimize those avoidable transfer events because the company remains the same entity.

To the extent your objective is a legal way to move a company out of Arizona while keeping core federal identifiers intact, redomestication deserves serious consideration. For additional detail on why continuity—including FEIN continuity—is a central feature of statutory conversion, see the legal way to move a company out of Arizona while preserving its FEIN.

3) Maintain existing contracts and reduce counterparty leverage

Many owners underestimate how frequently contracts restrict assignment or require notice and consent when a business changes structure. That misunderstanding often leads to a flawed assumption that forming a new company is an acceptable legal way to move a company out of Arizona. Even where assignment is technically possible, the process can invite renegotiation. Counterparties may attempt to modify pricing, impose new security requirements, or delay performance while their counsel reviews the change.

Redomestication generally mitigates that leverage problem by maintaining the entity rather than transferring assets to a successor. The practical goal is not merely “legal correctness,” but transaction stability: preserving ongoing relationships and limiting the number of parties whose consent becomes a gating item. This is particularly important for companies with material vendor agreements, client service contracts, government contracts, leases, or financing arrangements where delays can have immediate operational consequences.

For organizations with contract-heavy operations, the most prudent legal way to move a company out of Arizona is often the method that minimizes contract disruption in the first place. For that reason, owners frequently select redomestication as a strategic tool to relocate while protecting commercial continuity and reducing the need for widespread amendments.

4) Exit the Arizona environment without creating dual-state compliance burdens

Business owners commonly believe that foreign entity registration in a new state is the correct legal way to move a company out of Arizona. In reality, foreign registration typically results in the Arizona entity remaining an Arizona domestic entity while also becoming authorized to do business elsewhere. If the business has genuinely left Arizona, that approach can force the owner into an unnecessary dual compliance posture: ongoing annual filings, registered agent fees, and administrative maintenance in Arizona, even though Arizona is no longer the intended “home” jurisdiction.

Redomestication, by contrast, is designed to transfer the company’s home state to the new jurisdiction. Where the company has discontinued operations in Arizona and the intent is a permanent relocation, that structural change can simplify future compliance by aligning the entity’s legal domicile with reality. The goal is not merely to be “allowed” to operate in the new state, but to cease being treated as an Arizona company for state law purposes.

When evaluating the best legal approach for moving a company out of Arizona, owners should insist on clarity regarding post-move obligations. A move that leaves the company with ongoing Arizona administrative burdens may not be a move in any meaningful sense; it can be a layering of obligations. Redomestication is frequently the cleaner answer because it is designed to eliminate the former-state corporate “home” status when the company has truly moved.

5) Misconceptions that cause costly mistakes when moving a business out of Arizona

A recurring misconception is that dissolving the Arizona entity is the safest legal way to move a company out of Arizona. Dissolution may appear simple, but it can be operationally and legally expensive when done prematurely. Once dissolved, the company may lose leverage in ongoing negotiations, complicate collection of receivables, and create avoidable confusion with banks, payment processors, and counterparties. Additionally, dissolution often triggers a cascade of internal tasks: closing accounts, terminating registrations, and re-establishing systems under a new entity.

Another misconception is that a merger is the default solution. Mergers can be effective in specific scenarios, but they are frequently overused. A merger introduces added documentation, additional legal mechanics, and often higher professional fees, particularly if the merger must be “undone” or corrected after the fact. When the real objective is simply to change the company’s domicile, redomestication is typically the more direct path.

Finally, owners may assume that changing the company’s mailing address, principal office location, or internal records constitutes a completed move. Those changes may be necessary, but they do not usually effectuate a legal change in the company’s state of formation. A legal way to move a company out of Arizona must address the company’s governing law and state of domicile—precisely what redomestication is designed to accomplish.

6) A practical, attorney-and-CPA perspective: what should be reviewed before redomesticating

Although redomestication is often the best legal way to move a company out of Arizona, it should be approached with a disciplined review of both legal and operational considerations. These typically include (i) confirming the entity type and current standing, (ii) evaluating whether the destination state permits the intended statutory conversion path, and (iii) identifying any regulated activities, licensing issues, or industry-specific requirements that may require notice or re-issuance after the move.

From a documentation standpoint, owners should anticipate that corporate governance records may require updates consistent with the new state’s framework. That does not imply operational disruption; it is simply the prudent alignment of internal records with the new domicile. In addition, banking, payroll, merchant accounts, and insurance may need address and jurisdiction updates. A coordinated plan ensures that the legal relocation is mirrored across the company’s administrative ecosystem.

To proceed with an experienced-guidance approach rather than piecemeal filing decisions, business owners should consider a legal way to move a company out of Arizona using redomestication and ensure the filings and supporting documents are prepared correctly the first time. In this context, competence is not abstract; it is the difference between a streamlined conversion and months of corrective work.

Conclusion: redomestication is often the most efficient legal move out of Arizona

For companies that have permanently relocated or intend to permanently relocate operations, redomestication is frequently the most efficient legal way to move a company out of Arizona. Its central advantages—continuity of contracts, retention of the existing FEIN, and the ability in most cases to keep the business name—are not minor conveniences. They are structural protections against unnecessary disruption, delay, and cost.

By contrast, foreign registration can preserve unwanted ties to Arizona and produce avoidable dual-state compliance obligations. Mergers and dissolution-based strategies can introduce unnecessary complexity, heightened execution risk, and operational friction that management teams simply do not need. In a properly planned transition, the business should continue operating while the legal domicile is updated in the background, with the move completed in a manner consistent with statutory requirements.

Owners who want a legal way to move a company out of Arizona should pursue the mechanism designed to accomplish exactly that outcome. Review the legal way to move a company out of Arizona through redomestication, and proceed with a strategy that preserves continuity, reduces administrative burden, and positions the company to thrive in its new jurisdiction.

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