Expanding to a New State

Expanding to a New State

Has your business grown to the point where it makes sense to have a presence in another state? Congratulations! This is an exciting milestone for your organization. When deciding where to expand and taking the steps to do so, it is important to make sure you understand the rules for registering and operating your business in other states. Finding yourself on the wrong side of the local laws could leave you open to fees, taxes, or lawsuits that could compromise your growth.

Some important areas to research in a new state include:

Registration: Determining what government agency you need to register your business with and what paperwork you need to complete is an important first step. Typically you register your business as a foreign entity with the secretary of state in order to begin operating. Depending on how you plan to operate in the state may impact what you need to provide to register. In some cases, it may make more sense to incorporate separately in this state or set up an LLC in each state.

Taxes: A large component of deciding where to expand and how to operate in the state is determined by taxes. States have different tax codes for businesses that vary widely based on type of organization. Having a firm grasp on how your business would be taxed if you operated in this new market is crucial to your success.

Labor Laws: If you plan to have employees work in the new state, it is important to know the various state and local rules governing employees. Things like minimum wage, workers’ compensation, time off, and discrimination vary by jurisdiction. Make sure that you are in compliance before you hire or relocate any employees to the new location.

You know how difficult it can be to make sure you are complying in the laws in the state you currently operate. Trying to get a handle on a new state can be a difficult process to navigate. Riesterer Law has extensive experience with interstate commerce and can help you understand and properly start up in your new state so you are on the road to success.

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