Remote Work: Should You Move Your Company to a Different State?

The COVID-19 pandemic has changed a lot of things for everyone across the
globe. It has ushered in an entirely new human experience full of hand soap
and face masks.

In addition to these disruptions to daily life, the pandemic has also changed
the way we work forever. Several businesses have had to grapple with
economic shock and structural reorganization. Remote work became a
necessity, and several business models had to change to survive the time
and tide.

As the pandemic threat gradually fades, business owners still have many
questions to answer. One of them is whether or not to move to a different
state for greener pastures or other reasons. This is happening against the
backdrop of remote work, which allows businesses and employees to
function from anywhere. The question of whether to move, therefore,
requires careful consideration.

Uprooting your business and embarking on a move is not a decision to take
lightly. It’s crucial to have all the information you need before making such a
significant change, especially during the uncertain times we’re living in.
Here are the things you need to keep in mind if you’re considering relocating
your business.

Why are you moving?

An excellent place to start is to ask yourself why? There are a variety of valid
reasons for moving your business to a new state. However, you must be able
to determine your reasons so that your move caters to that reason perfectly.

Typically, most business owners move because:

Their target market has changed—economically or demographically.
The cost of real estate and property taxes has become unbearable for
the business.

The current state has become less business-friendly, imposing higher business taxes and more regulations.

And the proposed state has tax incentives in place that would benefit the business.

Family reasons, such as access to schools, spousal job opportunities, moving closer to extended family.

Access to a different workforce

After setting out your reason, consider if there are less disruptive
alternatives. For example, suppose your reason is access to a different
workforce. In that case, remote working now allows you access to talents
from all over. Could your business model accommodate hiring talents
working remotely? How about hybrid work? Here, the employees come in on
some days or occasions and work remotely on other days.

If you are considering remote work as an alternative, you would need remote
work agreements. Remote work agreements ensure that your employees
understand expectations for the performance of remote work and agree to
meet these expectations.

In any case, the bottom line is that you should consider your reasons for
wanting to move painstakingly. You must look at the pros, cons, alternatives
and decide what’s best.

Determine whether a move makes financial

You should only move a business if you were better off financially after the
move. For example, if you live in a big city with a high cost of living, you
could save a lot of money by moving to a smaller town or more affordable
state. This will only work if your income remains the same or increases. You
should make sure that the more affordable state will not reduce your

You might also consider the tax rates of the area where you currently live
compared with where you’re thinking of moving. Moving to a place without
state income tax could save you thousands of dollars, depending on your
income. But do not also forget to figure sales and property taxes into your
calculation. And if you’re considering buying a property in your new location,
check out the average real estate prices and appreciation in their values
over the past few years to determine whether it would be a favorable market
to get into.

Know your clients

Before moving to a new city, you should make sure your niche or specialty
doesn’t require you to be on location. And that your client base can do
business virtually.

Some clients are so accustomed to coming in, sitting across the desk, talking
to you face-to-face, handing you their requests, and they just can’t fit into
the virtual world yet. However, if they are a core part of your business, you
should stay unless there are more significant considerations to your moving.
If your clients are gradually getting comfortable doing work virtually, make
sure your move and the distance won’t jeopardize your client relationships.

Understand the legal requirements

Months before your scheduled move to a new state, start researching the
specifics of your new business location. For example, if you are moving to
Chicago, find a good corporate law in Chicago who can help you pinpoint any
legal requirements or tax incentives.

The legal steps needed for a successful move vary depending on your
business structure. For example, suppose your business is structured as a
sole proprietorship. In that case, you do not have to comply with the
formalities and requirements necessary for most other business structures.
Suppose you are relocating a limited liability company (LLC) to another state.
In that case, you’ll have to decide whether you want to create a new LLC in
the new state and dissolve the old LLC or merge the old LLC into it. Of
course, you can also choose to continue your current LLC in the old state and
register or qualify the LLC as a foreign LLC in the new state.

In addition, you must obtain the correct licenses and permits to allow you to
carry on business in the new state. These permits depend on your specific
business sector. Hire a corporate to help you through the process.


While moving your small business to a new state can at first feel
overwhelming, taking the process step by step will help make the move go
as smoothly as possible. If you need help, do well to reach out to a corporate
attorney in the state you are moving to for guidance.

Once you’ve completed all of the necessary steps to complete your move
and you’re fully set up for business in your new state, you’ll be able to focus
once again on enhancing your products or services, on adding to your
customer base, and on growing your business.

Leave a Reply

Your email address will not be published.

Fill out this field
Fill out this field
Please enter a valid email address.
You need to agree with the terms to proceed


You have successfully uploaded the file. Thank you!