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What to expect when moving your startup from California to Las Vegas

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Moving your startup from California to Las Vegas seems like a reasonable path. In that manner, you want to avoid high-income state taxes. California leads with the highest income state taxes, and especially in New York and Hawaii. When it comes to moving from California to Las Vegas, and it comes to your business, the reason is almost always the same.  

Moving cross-country

We have to say it, moving your business to another state is not a piece of cake. And you will not be able to bypass all the difficulties easily. According to California laws, your business has to stay partly located in California. An owner has to be present there. But also, since the increase in e-commerce, owners who have more units and provide multiple products and services realize that their physical presence is not such a big deal. However, before you actually move of your business you must review the laws of both states. If this is the very first time that you are moving your company, just do yourself a favor and find the best moving companies in California to help you with all the details.

A man carrying a brown box, and a woman sitting - moving your startup from California to Las Vegas
Hiring professionals will speed up your move so your business won’t suffer

Maybe you are planning to keep operations running in both states. You have to know that many states will ask you to file as a foreign authority rather than moving your startup from California to Las Vegas. If you, however, decide to move all the operations to the new state, you will have to establish the corporation in the new State. Have in mind that cross country movers California based will help you with all those regulations

Relocating your startup from California to Las Vegas

If you made a decision on relocating your startup from California to Las Vegas, the first thing to do is to draft your conversion plan. The board of directors of your corporation must approve it. Then it goes to approval to the secretary of state. The conversion plan must include all the elements that the state requires. When the plan is submitted, the secretary of the state of Nevada will ask for some more documents to see.

Moving your startup from California to Las Vegas can be easier

It asks for a lot of time, it takes money and adds much stress to your everyday life. Moving your business is not that easy, but it is possible to do it lightly. Hiring a professional moving company will lift many burdens from your shoulders. From them, you will receive many tips and advice on how to do it safely and with minimum expenses. And everyone would benefit from reducing business moving costs.

Domestication in Nevada

Domestication is a process that allows foreigners to incorporate in a new state. The same could happen for your business. Once this process is finished, the corporation will be fully recognized like it is formed in the state of Nevada and all the laws will apply. On the paper, the corporation will keep the original start date, not the one when is domesticated.

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Domestication is one of many necessary steps

The state needs to approve domestication. It is different from conversion. The process is so much easier and you don`t need a written plan. The board of directors must approve the domestication. The newly domesticated entity has two options. One is to shut down all the operations in California. And the other one is that the corporation continues to exist in California and Nevada. If the second one is the case, a foreign entity has to fill with the California secretary of state.

Additional steps

You did all the most difficult papers. There are still a few things to complete with the states of Nevada and California so that you can make your business operational.

  • Change the address and notify the post office;
  • Update all financial accounts of all the changes;
  • Update the Internal Revenue Service (IRS) about all relevant changes when moving your startup from California to Las Vegas;
  • Inform all your client base, even if you operate online;
  • Update vendors and partners about all the news.

If the full name of your corporation includes the state, it has to be changed everywhere, in all the documents and agreed with vendors and partners.

Las Vegas is closer to the Tech revolution

Ten years ago, deep in the Great Recession, something had to be done. So politicians and business people promised economic diversification in the city of Las Vegas. Although some improvement is notified, the revolution was still lacking happening. Actual things with COVID-19 are pushing new recession on. A digital move has been experienced, and especially when e-commerce is in focus. Public and private transportations are trying to make more adaptable models, so they could be more efficient, safe and responsible to the environment.

Man and three woman sitting at the table with their laptops
Moving your startup from California to Las Vegas will get you closer to big tech companies

The City of Las Vegas is cultivating tech startups. There is an innovation center to help support creating new startups. It is also partnered with Startup Nevada, founded by federal economics to help companies scale up and find funding. The drawback was that many startups do not originate from Nevada. The innovation center is there to change that. The idea is to find an ecosystem that will support much new business, which then, will decide to stay in Las Vegas.

Enjoy your business

We know that it is not always possible, but remind yourself on your own why. The first one: why you decided to make a startup and the second why: why are you moving your startup from California to Las Vegas. Creating a world with freedom and passion will still mean that there will be some ups and downs. Every season brings its own lessons, and it will only make you stronger and more experienced. You are about to change a world, so never forget to lead with your best example. Many eyes are watching.

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