America is hitting the road! 8.4% of people moved residences in 2021. Some people moved to pursue new housing opportunities, but many moved because their businesses went to another location.
Moving a business to another state can give you many opportunities. However, you can’t just pack your things up and head out. You need to examine a few factors so you get the move right.
Who should you talk to before moving? What paperwork do you need to file? What moving expenses do you need to pay?
Answer these questions and you can make a smooth move in no time. Here are five tips for moving a business.
1. Consider the Impact on Your Stakeholders
Your stakeholders may want you to move to another state so you can expand your client pool and take advantage of tax laws. However, the disruption of moving a business can be too much for some stakeholders, and they may stop investing in your company.
Talk to each stakeholder and tell them about what your plans are. If the majority of your stakeholders object to your move, you should reconsider your move.
2. Talk to Your Employees
Your employees may also object to your move. You need to select a new location that is easy for commuting and setting up families. The office space needs to have a parking lot that is free for your employees.
But if the majority of your employees object, you should not relocate a business. You should find another opportunity to court clients in other states.
3. Meet All Legal Requirements
If you have an LLC, you must register your business in the new state. You will need to pay annual fees and other expenses to the state government.
If you have a partnership or a sole proprietorship, you need to cancel your business licenses and get new ones. You must pay outstanding fines and close your old bank account if it is not a national one.
4. Cover the Costs
You have other costs that you need to consider as well. Moving services can cost thousands of dollars, especially if you need to move bulky pieces of furniture and papers. Take a look at a few licensed moving companies and try to find one that is cheap.
You also need to buy a new office space. You can rent or lease a space, but review the terms of your contract so you don’t pay penalties.
5. Communicate With Your Clients
Your business moving should not disrupt your current operations. You should talk to your clients about any delays they may experience and what you will do next.
You may lose a few clients due to your move. That is okay as long as you gain clients as a result of your move.
Start Moving a Business to Another State
Moving a business to another state requires deliberation. You should talk to your stakeholders and make sure they’re okay with your move. Think about the impact on your employees and take steps to make the transition smooth.
File your legal paperwork in advance to reset your business. Cover all of the relevant costs, including moving and rental fees. You should also talk to your clients so they’re informed about changes to your services.
Once you’ve moved your business, you need to maintain your business. Read more business management guides by following our coverage.