Create a Detailed Timeline
Ward North American notes that the first step that you need to take is to create a timeline that includes every step that you plan to take during the process of moving your business. That includes the dates on which you intend to relocate your belongings, what projects need to be completed before you go, which employees will be involved in the transition, the tasks that they are responsible for completing, and so on.
A timeline provides managers and other team members with a detailed overview of the move. It allows you to review when tasks begin, who all is involved, and it indicates what specific deliverables must be accomplished to succeed. Your timeline may also include a budget for each stage of the move, keeping everyone on track and accountable. Once completed, submit the plan to all necessary staff members and follow it step by step to ensure a smooth move.
Consider the Tax Implications
Before you relocate, you will need to learn what will need to change during the process. For example, there can be tax implications that come along with relocating your business, such as the tax rate at the new location, and there could be franchise taxes and sales taxes that may apply. It is a good idea to research ahead of time so you know what to expect and that the move won’t negatively affect your company.
When moving to another state (or doing business in multiple states), there are other factors in play. Armanino points out that, depending on the state(s) you’re doing business in, important aspects could significantly affect your tax implications. Two examples include:
1. States that have credits that are not available in other states, such as research and development credits, property tax credits and rebates, and credits for job creation credits.
2. If you are set up as an S-corporation, “you may need a specific state S-election as not all states recognize the federal S-election. If you miss the deadline to do this, your business would be treated as a C-corporation in that state until a valid state S-election is approved. This could significantly increase your tax burden in that state.”
Register Your Business with the New State
If you’re moving your LLC to another state, you’ll need to register your business with the new state. The cost of registration and renewal, the complexity of the process, and the additional filings required can all vary from state to state. You’ll also need to consider the impact on your business tax liability.
Depending on the state, you may be required to pay taxes on income earned in that state, even if your LLC is based in another state. Registering your LLC in multiple states can be complex and costly, but formation services make it easy. It’s important to weigh all of these factors before making a decision.
Digitize Your Documents
Digitizing your documents prior to a business move has numerous merits. It not only helps in reducing physical clutter but also safeguards important information from potential loss or damage during the move. Digital documents are easier to organize, search, and share, increasing efficiency and productivity. Furthermore, using a PDF tool for signing can streamline your workflow by allowing electronic signatures, thus eliminating the need for physical presence or paperwork. This is especially beneficial in today’s remote working environment. So, if you’re planning a business move, give this a try. Embrace digitization and make your transition smoother and more efficient.
Update Your Invoices
Another step that will make the move easier is updating your current invoices with any necessary updated info, including the updated mailing address and phone number, if necessary. While you can update your existing invoice, an easier route may be to create new invoices from scratch.
If you need help, then WorkGuru.io suggests using an online invoice template. There are many options out there, and you’ll have a choice of hundreds of pre-made invoice template options that you can pick. From there, you can modify it with your own wording, colors, and logo, as well as your contact info. Then you can download it and start sending it out.
Consider Putting Items in a Storage Locker
It is a smart idea to start moving the items you don’t currently need as soon as possible so you have a lighter load when it comes time for the big move. If you don’t have the new office ready yet, then you can create a temporary solution by putting your items into a storage locker. Many storage centers are highly rated and offer great discounts to new customers.
Hire a Moving Company
Since you will have so much on your plate, it wouldn’t hurt to hire a professional moving company to do the heavy lifting. A good company will help to pack up your existing office and then transport it to the new location. Some will even help you to unpack once you are there. Be sure to do your research ahead of time and look at previous customer reviews so you can ensure that your precious belongings will be safe. Also, get estimates from several companies so you find one that fits within your budget.
So there you have it. Five steps to a successful move without jeopardizing your productivity or sacrificing your customers. By setting up your financials, finding a suitable storage locker, and hiring a moving company, you can create an easy transition.
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