Hey all, I run a small LLC (single member, consulting) registered in Colorado. Next summer I'm moving to Oregon for family reasons. I know I'll need to update my address, but does anyone know if I have to register as a foreign LLC in Oregon? Or can I just keep the Colorado LLC and operate from there? I'm getting mixed info online. Also, any tax implications I should watch out for? Appreciate any real-world experience.
LLC & Moving
Moving to another state next year could complicate my LLC
You almost certainly need to register as a foreign LLC in Oregon if you're moving there and will be running the business from your new home. Colorado LLC won't cut it alone. File a foreign registration with the Oregon Secretary of State. It's not that expensive, just a form and a fee.
Is Oregon your new 'principal place of business'? Then yes. But if you keep a physical office in Colorado and just happen to live in Oregon, maybe not. But for Consulting from home, likely yes.
Just dissolve the Colorado LLC and form a new Oregon one. Simpler than dealing with foreign registration. Unless you have contracts or licenses tied to the Colorado entity.
I do have a coulpe of long-term client contracts that reference the Colorado LLC by name. Would that make dissolving messy? Also, I'd rather not pay two annual report fees if I can avoid it.
If contracts are with the LLC, dissolving means you'd need to assign them to the new entity. Could be a headache. Foreign registration keeps the same legal entity, so contracts stay intact. I'd go that route. But you'll still owe Colorado annual report fees unless you formally withdraw.
Also check Oregon's corporate activity tax (CAT) and any local business licenses. Not legal advice, but I moved my LLC from WA to OR last year and had to file a foreign registration plus a new business license with the city. Wasn't too bad.
Wait, there's a GrumpyOldGuy and a grumpyoldguy? This is getting confusing.
Case sensitivity,my friend. Also, @wanderingbadger, don't forget to update your registered agent address. If you use a service, they might handle the foreign registration for a fee.
One more thing: Oregon has a minimum tax for LLCs, I think $150? And you might need to file a final Colorado return if you withdraw. But I'm not a CPA, so definitely talk to one.
Good luck with the move. Oregon is nice, but the rain takes some getting used to.