The fact that your business is growing is good news. However, with expansion comes a new set of challenges. Whatever your situation, here are five concerns to consider when moving your company across state lines.
Some states will have fewer regulations than others, or regulations on one thing but not something else that was more heavily regulated in your old state. For example, a product may be required to be made without a certain material or you may now be allowed to sell certain kinds of products. Other important regulations to follow include any relating to employees. Different states have different workplace rules that you must follow as an employer.
Taxes may be a significant part of the reason why you’ve chosen to move your business in the first place. Some states have much lower taxes than others, and it can be advantageous for businesses to move where they will be afforded a tax break. In some cases, however, you may be moving to a state with a higher tax rate. It’s important for all business owners to understand their tax burden and properly plan for it. Don’t forget to plan for tax that must be collected on sales across state borders—especially online sales.
This is not relevant in every industry but it is important to a number of professions. For example, trade careers, such as electricians and plumbers, are almost always licensed at the state level. Restaurants need to be properly licensed in order to sell food and alcohol. Don’t forget about any local licenses your business may need. Check with your new state to see if anyone on your staff requires a license to perform their job.
Due to a number of factors, including different laws and even different insurance companies servicing the area, your company will likely have to obtain new insurance coverage when moving to another state. This includes worker’s compensation insurance, liability coverage, vehicle insurance and more. Check to make sure your new location is not in an area that floods frequently. Flood insurance is not usually included in most policies but can be purchased separately if you have need of it.
You will need to register your business in your new state. This is usually as simple as filling out a form, especially because the business is already likely registered on the federal level. Consult with an attorney for any inquiries about business registration in the new state. While you work to get the registration sorted out, a multipurpose moving company such as Kloke Group Moving & Storage can store your company’s items and then move them when you are ready.
Moving a business across state lines is not as simple as it may sound. There are a number of concerns to investigate, with the most important being listed above. Educate yourself and plan ahead, and your move should go smoothly.
Guest author, Lizzie Weakley is a freelance writer from Columbus, Ohio. She went to college at The Ohio State University where she studied communications. In her free time, she enjoys the outdoors and long walks in the park with her 3-year-old husky Snowball. @LizzieWeakley