There are many reasons for a business owner to decide to move their business to another state. It could be the fact that the current location is becoming less business-friendly, the economy could have changed, causing the taxes to increase, or there could just be a need for a bigger or different market. Whatever might be the cause, before relocating a business, every owner should prepare thoroughly. Here’s what every employer should know before moving their company to a new location.
Make Sure You’re Ready
This is an important decision and a huge step that will have an immense impact on the way your company works. Before you start preparing for the move, make sure you and your team are ready for this. If you’ve noticed some problems that are solvable if you change your location, then the only answer is to move. Your decision should be firm.
Communicate With Your Team
No good decision is ever made without consulting the people you work with. A business owner should make sure that every employee is ready for long-distance moving, that they’ll be able to adapt, and that they’re happy about the change. If you’re planning on expanding your work team, you must let your current employees know.
Talk to Your Business Partners
Before making any changes to your current way of working, consult with your partners to see what they suggest you should do. If you reach an agreement, you could continue working together, which will be a huge benefit, since you’ll be new in another market.
Know How to Choose a New Location
If you’re changing your target market, you will need to adapt and even change your product or service according to the new economy and demography. The best way to decide where you should move is to do detailed research of the states that you’re interested in moving to and to see which one of them has what you need. That includes taxes, the current job market, and new talents you can hire. The whole point of the move is for the business to thrive, so your desired location must provide you with the opportunity to do so.
Create a Budget
Moving a business isn’t cheap nor simple, so you have to be financially ready for all the expenses that will await you. This is also a perfect time to cut down some current unnecessary expenses you might have. Here are the main things you should do:
- Shop around for quotes and see how much will the move cost (at least approximately),
- Find out how much will your monthly lease be,
- See if the lease includes the utilities,
- If not, find out how much do monthly utilities cost,
- Get to know the tax rates you must pay,
- Leave enough money for the furnishing of the new office and new equipment.
Start on Time and Stay Organized
Moving is much more simple with a good old checklist. If you wish to stay organized, create a to-do list and leave enough time for all the tasks – starting months upfront isn’t too early. If you’re taking the current equipment and furniture with you, decide what goes and what stays. Once you declutter, there will be fewer things to worry about. Give each department responsibilities and keep the whole team involved in the move.
Don’t Forget About the Legal Part
Another part of moving is also the legal things that have to be done. Your tasks will vary depending on what kind of business you own. If you have a corporation or an LLC, you should register in the new state and dissolve the corporation in the old one. Another option would be to file a foreign qualification in the new state. All board members should agree to close and move the company.
If you’re an owner of a sole proprietorship or a partnership, you will have to cancel local licenses and permits. After that, you can apply to new ones. Make sure you paid for all the fees and taxes, and see if your bank has an office in the new state. If not, you will have to close the account and open it in another bank.
Change your address and phone number on all the documents, and notify the IRS of the move so that they can change their forms. Finish all of your paperwork, and consult your lawyer and tax advisor to be sure you haven’t forgotten any legal issues.
Hire a Moving Company to Help You Out
If you want to be completely sure that all of your equipment and paperwork arrives safely at another destination, get in touch with a professional moving company. They will use high-quality packing supplies, protect your whole shipment, and ensure that you have a stress-free relocation.