Are you considering moving your Arizona-based business to another state? Changing your company’s domicile or residence, known as domestication, involves a series of legal steps. Before proceeding, you must consider these steps carefully. Doing so ensures a smooth transition and avoids any legal complications or pitfalls.
Understanding the plan of domestication
Domestication is the process of moving your company’s official residence to a new state. In Arizona, this process falls under the Arizona Entity Restructuring Act. To change your domicile, you, as the “domesticating entity,” must file a Statement of Domestication with the Arizona Corporation Commission (ACC).
If your company operates in Arizona and you plan to move to another state, you have to comply with the laws of both states. This also applies if you’re moving from another state to Arizona.
Steps to take before a company relocation
To ensure a smooth transition from Arizona to another state, follow these key steps:
- Prepare the statement of domestication: List the domesticating entity’s name, jurisdiction and type. Plus, you must include the date of original formation in the statement.
- Attach required documents: For an Arizona business or an out-of-state entity relocating to Arizona, it’s crucial to gather and attach the necessary paperwork.
- Determine your filing fee: Fees vary by entity type. So, the amount is $100 for Arizona corporations, $50 for LLCs and variable for foreign entities. Additional fees apply for faster processing.
- Submit the statement of domestication: Pair your submission with a cover sheet and all required attachments.
You can submit these documents and the payment by mail or in person at the Arizona Corporation Commission’s office in Phoenix. Ensure all mail submissions are complete before sending them to the Commission’s office. This will help avoid delays in processing your company’s domestication.
Addressing the complexities of a move
Each state has unique rules affecting domestication. For instance, only corporations may domesticate in Arizona and South Carolina, while Nebraska restricts it to insurance companies. Given these complexities, you should consider consulting with a business law attorney. They can help assist you with your business’ transition to a new home state.