The Lone Star state is a great place for businesses of all kinds. Its overall economic climate, favorable tax policies, strong workforce, and pro-business regulations all contribute to a welcoming environment, especially for those who are planning a corporate move to Texas. Is your company joining the likes of Chevron, Caterpillar, Hewlett Packard, and Oracle by making a move to Texas? Read on for how to prepare for a corporate move to Texas:
Settle on a setting: Texas has many different regions that lend themselves to potential business development and growth. While Dallas, Houston, San Antonio, and Austin are major players, there are other ideal locations in Texas that can be just the right fit for your company. The Texas Economic Development Connection has a great relocation planning tool that can help you discover some of the best locations and opportunities for corporate relocation.
Local licenses and permits: If your business is a sole proprietorship or partnership, this makes for a simpler move across state lines. Be sure to cancel local business licenses and permits in your original location and apply for new ones in your Texas city. If your business has an assumed name or a “doing business as” (DBA), you’ll need to withdraw the DBA in your current state and file for a new one in Texas.
Make a conversion or a migratory merger: Some states allow you to change the state of organization for your business. You must let your current state know you’re relocating, which can be done by filing a Certificate of Conversion with the Secretary of State in the state where you started your business. Next, make a plan of conversion. This includes information about your type of business and moving plans. Then, you have to let the state of Texas know you and your business are headed that way. File a Certificate of Conversion and a Certificate of Formation with the Secretary of State of Texas. There are many state-specific regulations restrictions when it comes to relocation. Note that a California corporation can’t be converted to a Texas entity, but the move can be completed with a migratory merger.
Taxes, and No Taxes: You don’t want any surprises when it comes to business taxes. Do the footwork in your current location, and ensure that you pay all outstanding fees, sales, or employment taxes. The good news in Texas is: there are many great tax benefits and incentives to enjoy like no personal income tax. Be sure to inform the IRS of your business move so that your Employer Identification Number (EIN) is up to date with change of address.
Business banking: If you don’t currently work with a nationwide bank, it will be necessary to close your account and reopen a new business account in Texas. If your bank is remaining the same, you’ll need to update addresses for your accounts. This could be a time to switch to a nationwide bank or to choose a local Texas bank that best suits your business needs.
Give notice: Communicate clearly and early with your customers, clients, and suppliers regarding your corporate relocation to Texas. If need be, you can make accommodations to maintain these relationships once you move, or to establish new ones once you’ve settled in your new location.
Prepare your employees: Will all of your employees relocate with your business? Early notification will help employees with big decisions like moving out of state. Will you be hiring new employees in Texas? Texas is known for its great workforce.
Spread the news: How will your company share news of its relocation? Press releases can help get word out to local media. Social media is another channel to announce your company’s move. Be sure to time this announcement well, once the majority of your business details are in place.
Know the laws: A great legal team can help you to sort through all of the conversions, mergers, moves, and media you need to work with for your big move. In addition, there are plenty of resources available from the team at the Texas Economic Development Connection.
For any major moves in business, it is essential to plan your business move well. Go over your plans with professionals at the Texas Economic Development Connection, and get connected with all the right people and places for your corporate move to Texas. Set up a call or reach out to TexasEDConnection.