If you choose to sell your business
There are certainly options available to you. For example, there are business brokers who specialize in finding buyers for viable businesses. They typically take a percentage of the sale price as a fee or commission and help negotiate the terms of the sale between the buyer and seller. Typically, brokers who want to avoid personal liability for writing the sale contracts will work with skilled business attorneys to handle the actual sale process – which is where we come in. When you’ve got a buyer lined up and are ready to sell your business, we’re here to work with you and your broker, to help prepare the paperwork, and to walk you through the sale process.
If you choose to move your business
You could also move your business to a new state, which can look a little different depending on what state you’re moving to and what state you’re moving from. Each state has its own laws on what is commonly referred to as “domestication” – that is, the moving of a business entity from an old home in one state to a new home in a different state. Some states make this as simple as filling out paperwork in both states to let them know of the move. Other states – like New Mexico – haven’t made this process so simple yet. Unless both states have business domestication procedures written into their laws, domestication isn’t available to you. In the alternative, you’re left with a sort of merger by which you would:
- Open a new LLC or other business entity in your new state
- Move all the assets from the old business over to the new one
- Close the old business entity
This is less than ideal, since, technically speaking, the new business entity is not the same as the old one. This can have some very strange effects on things like company bank accounts, contracts, and taxes. In any event, I’d strongly advise you to speak with a good business attorney who can walk you through your specific options and help you get it done.
If you choose to register your business
Alternatively, you could register your existing business in your new state. Your business would continue to legally exist in New Mexico but would also exist in your new state as a “foreign LLC” or other foreign entity. You’d be required to keep up with the reporting obligations for both states, but you’d also have the option to continue to do business in both your old and new home states – something you couldn’t necessarily do if you moved your business.
Ready to speak to an Attorney about moving your business?
Contact us or give us a call at 505.848.8581