topic LLC from MA to TX in Business & farm

LLC from MA to TX

enterprimellc — Wed, 13 Nov 2024 17:11:14 GMT

Hello,

I moved from Massachusetts to Texas recently. I would like to take advantage of the no state income tax of TX as well as having the opportunity to create additional ad accounts and what not which would be beneficial. I am trying to decide between creating a new LLC or transferring my current LLC to TX and would appreciate some advice.

Questions:

1. If i transfer the LLC, will I be able to use the same bank, and credit cards?

2. Will I receive a new EIN and reg number?

Thank you for the help!

Re: LLC from MA to TX

Loretta P — Wed, 13 Nov 2024 17:29:42 GMT

Hello @enterprimellc congratulations on your move to Texas. I made a similar move from Michigan to Texas back in 2002. I am an S-Corp instead of an LLC but the process is the same. I was able to keep the same bank accounts and credit cards but choose later to open a new bank account in Texas. I also kept the same EIN. You need to file paperwork on the Secretary of State website in Texas to register your LLC as a domestic business. Texas will assign a Webfile number to allow you to e-file documents and returns. You will most likely need to advise MA that you are leaving the state.

Helpful links:

Texas Comptroller's Website

Texas Secretary of State

MA Secretary of State Corporations Division

Re: LLC from MA to TX

enterprimellc — Wed, 13 Nov 2024 21:58:09 GMT

Thank you for the response Loretta

Do you know if I maintain my MA bank/cards, would that mean I have a MA nexus and would still need to pay MA income tax?

Re: LLC from MA to TX

KarenL4 — Wed, 13 Nov 2024 22:39:49 GMT

Hi, enterprimellc,

The question of nexus is ultimately one of determination of state law. I recommend you call the Massachussets Department of Revenue using this contact information.

That said, it may be useful for you to have this letter ruling, which might suggest that banking alone is not adequate to create nexus.

Hope this helps.

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Regards,

Karen

TurboTax Expert

Re: LLC from MA to TX

FranklinF — Wed, 13 Nov 2024 22:49:04 GMT

In addition, in general, having PROPERTY or PAYROLL in a state is sufficient to create nexus.
The above is also applicable to employees who travel to a state for work-related tasks and remote employees working from home.

2024 Guide to State Sales Tax in Massachusetts

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