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The Redomestication Process in a Nutshell
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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 Louisiana 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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What the process is for moving a company out of Louisiana without disrupting operations
When business owners ask what the process is for moving a company out of Louisiana, the practical concern is rarely limited to filing a form with a secretary of state. The true objective is to relocate the entity’s legal “home state” while preserving continuity: the same entity, the same operational history, and the same commercial relationships that give the company its value. In that context, redomestication (statutory conversion), as described on our firm’s redomestication page, is the most direct mechanism for a permanent relocation.
Properly executed, the process for relocating a company out of Louisiana by redomestication is designed to avoid the avoidable: unnecessary dissolution, avoidable tax friction, and the operational interruption that comes from creating a new entity. For companies with employees, vendor contracts, leases, financing arrangements, licensing, and customer agreements, the legal structure must move in a way that is orderly, documented, and defensible, with minimal collateral damage.
To evaluate and begin the process of moving a company out of Louisiana through redomestication, review the process for moving a company out of Louisiana via redomestication. That resource provides the framework for a compliant filing strategy built around preserving the company you already own, rather than starting over.
1) Clarify the objective: changing domicile, not “starting a new company”
One of the most common misconceptions embedded in the question, “what is the process for moving a company out of Louisiana,” is the assumption that a business must be dissolved in Louisiana and re-formed elsewhere. That approach often creates unnecessary risk: contracts may require assignment, lenders may treat the transaction as a new borrower, and counterparties may insist on renegotiation. From a governance standpoint, dissolution and re-formation can also fracture the entity’s historical record and create avoidable administrative burden.
Redomestication is fundamentally different because it focuses on continuity of the existing entity. The company changes its state of domicile while maintaining the legal identity that vendors, customers, and regulators already recognize. In many cases, the company’s name can remain the same, which is not merely cosmetic; it can preserve brand equity, goodwill, and the continuity that matters to consumer and enterprise buyers alike.
Accordingly, when analyzing what the process involves for moving a company out of Louisiana, a qualified adviser should confirm that the goal is a permanent relocation and that redomestication aligns with the company’s operational footprint and compliance posture. Where that alignment exists, conversion is typically the superior solution.
2) Identify why owners exit Louisiana: taxes, litigation risk, and business climate
For many owners, the process for moving a company out of Louisiana is driven by a sober cost-benefit analysis of operating within Louisiana’s tax environment and legal system. When a company’s management, workforce, and revenue-generating activity are shifting to another state, maintaining Louisiana as the “home state” can create ongoing compliance costs and administrative distractions that provide little strategic value.
Further, businesses frequently evaluate where disputes are likely to be litigated and how predictable the legal environment may be for contract enforcement and commercial conflicts. While every case is fact-dependent, sophisticated owners commonly prefer a structure that aligns domicile with the jurisdiction where the company’s day-to-day decision-making and long-term growth will actually occur. A relocation strategy is not merely a filing choice; it is a risk-management choice.
If your primary question is what the process should be for moving a company out of Louisiana while improving the company’s long-range positioning, the correct analysis should consider legal, tax, and operational consequences together. For a structured path focused on preserving continuity, see how the process works to move a company out of Louisiana through redomestication.
3) Use redomestication to preserve the FEIN, contracts, and (in most cases) the company name
Owners often underestimate the true cost of “moving” a business by forming a new entity. In practice, a new entity frequently means a new compliance profile: new registrations, new banking documentation, potential contract assignments, and administrative re-onboarding with vendors and payment processors. If the company has employees, payroll systems and benefit relationships may also become more complex than expected. These are not theoretical inconveniences; they can consume executive time and create operational risk.
By contrast, when properly structured, redomestication is designed to let the company keep its existing federal employer identification number (FEIN) and maintain contractual continuity. That continuity is especially important where customer agreements prohibit assignment without consent or where lender covenants require notification or approval for material corporate changes. Instead of recreating the business, redomestication moves the legal domicile while preserving the enterprise you have already built.
This is precisely why, when business owners ask what the process is for moving a company out of Louisiana in a way that does not disrupt daily operations, redomestication is often the best answer. It is a transaction built around preserving continuity, not generating avoidable administrative work.
4) Anticipate procedural and documentation issues before filing
Although the concept is straightforward, the process for moving a company out of Louisiana requires disciplined execution. The entity’s internal records must be consistent with the proposed conversion: governance authority, approvals, and the company’s current good standing must be confirmed. In addition, the company’s ownership structure and operational profile should be reviewed to identify third-party approvals that may be prudent even if not strictly required by statute (for example, lender notification or key-contract review).
In my experience, conversion projects fail or become unnecessarily expensive when owners treat the transaction as a generic “state filing.” It is not. The transaction must be supported by proper legal documents, and the filing sequence must be managed so that the transition is recognized appropriately by each relevant jurisdiction. When mistakes occur, the cost is not merely a rejected filing; it can be months of remedial work to restore good standing, correct record inconsistencies, and address mismatched entity information with banks and counterparties.
For those evaluating what the process should include for moving a company out of Louisiana, the essential point is this: the paperwork is the proof. A well-documented conversion protects the company’s continuity and reduces the risk that third parties will treat the move as an unplanned corporate event.
5) Avoid the “foreign registration trap” when the move is permanent
Foreign qualification (foreign registration) is frequently recommended as a default solution, but it is not the same as changing domicile. If your company’s operations have permanently relocated, maintaining Louisiana as the domestic state can create long-term administrative burdens. Owners may find themselves paying renewal fees, maintaining registered agents, and continuing compliance tasks in a state where the business no longer meaningfully operates.
Foreign registration can be appropriate where the company intends to continue substantial operations in Louisiana. However, when the practical goal is to exit Louisiana’s environment and align the company’s home state with its new operational reality, foreign qualification can become a half-measure that prolongs complexity. In that scenario, the process for moving a company out of Louisiana should be evaluated with a bias toward a clean, permanent domicile change rather than indefinite dual-state maintenance.
Where the facts support it, redomestication can accomplish that change while preserving the entity’s identity and minimizing disruption. To review that approach, consult the practical process for moving a company out of Louisiana using redomestication.
6) Understand why mergers and dissolutions are often the wrong tools
Mergers are sometimes suggested as a method to shift a company’s effective domicile. While a merger can, in certain circumstances, achieve a structural outcome, it is frequently more complex than necessary and can introduce avoidable expense and legal risk. A merger also tends to require more extensive documentation and may create issues with third parties who treat the transaction as a fundamental change in the business.
Dissolution and re-formation is even more problematic when the goal is continuity. Dissolution signals an ending. It can complicate contract relationships, confuse customers, and generate operational churn. Moreover, owners who dissolve prematurely often learn—after the fact—that they must unwind the “simple solution” to preserve licensing, banking, or contractual continuity. In that respect, dissolving in response to the question of what the process is for moving a company out of Louisiana can be the most costly form of false simplicity.
In contrast, redomestication is purpose-built to achieve the domicile shift while maintaining the company’s ongoing existence. It is not an improvised workaround; it is a direct mechanism for a direct objective.
7) Implement the “after” checklist: banking, licensing, taxes, and internal governance
Even when the state filings are approved, the process for moving a company out of Louisiana is not complete until the company’s real-world operational profile aligns with the new domicile. That typically includes ensuring the company’s records, internal governance documents, and compliance calendar reflect the new state. Banks, payment processors, and counterparties may require updated documentation confirming the company’s domicile change, and it is best to address those requirements systematically rather than reactively.
From a tax administration standpoint, the company should also coordinate with its tax professionals regarding state accounts, nexus, and any final reporting obligations that may exist in Louisiana based on the company’s actual operations and timing. The guiding principle is consistency: the company’s legal domicile, operational footprint, and compliance posture should tell the same story. That is how owners reduce audit risk, reduce administrative friction, and maintain a clean corporate record.
When owners ask what the process entails for moving a company out of Louisiana, they are often focused on the “filing.” The better framing is the “transition.” The filing is necessary, but the transition is what protects the business.
Conclusion: the strongest answer to what the process is for moving a company out of Louisiana
When the move is permanent and the goal is to exit Louisiana’s environment while protecting continuity, the process for moving a company out of Louisiana should prioritize a lawful domicile change that avoids operational disruption. Redomestication (statutory conversion), as defined on the firm’s redomestication page, is frequently the most efficient method because it allows the company to maintain its existing contracts, preserve its FEIN, and, in most cases, keep its name—all without halting business activity.
Owners should be wary of oversimplified advice to “just register as a foreign entity” or “just dissolve and restart,” particularly when the business has meaningful contracts, employees, financing, or brand equity. Those approaches may appear simple at the outset, but they often create long-term compliance obligations or immediate operational disruption. A correctly structured redomestication is the opposite: it is a purposeful, continuity-first solution.
If you are ready to proceed, begin with the process for moving a company out of Louisiana through redomestication. That pathway is designed for owners who value certainty, continuity, and a clean exit from Louisiana as the company’s home state.
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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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