Washington, DC asked in Tax Law, Business Formation and Business Law for District of Columbia

Q: My single-member LLC is registered in Washington, DC. How do I continue my LLC when moving out of DC and to New York?

My business (marketing/website design) is registered as an LLC in Washington, DC. We’re looking to move full time to New York. I’m planning on keeping my existing client base.

Is it possible to keep the LLC registered in Washington, DC, even without a Washington, DC address? If not, could we acquire a Washington, DC PO Box as a workaround? If the business could stay registered in DC, do we have to register as a foreign LLC in New York and then pay Taxes through New York instead of DC?

1 Lawyer Answer
James L. Arrasmith
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Answered

A: Yes, it is possible for your DC-registered single member LLC to continue operating even once you move out of the state. Here are a few key things to keep in mind:

- You can maintain your DC LLC registration even without a DC physical address. Using a DC PO Box as your registered agent address is perfectly fine. No need to redomicile or transfer the current LLC.

- You will need to register your DC LLC as a "foreign LLC" doing business in New York by filing paperwork with the New York Secretary of State. This registration just keeps your entity active and authorized in NY.

- For taxes, your DC LLC would still file its business taxes and annual reports with DC as the state of organization. However, you will now also have to file additional tax forms with New York (such as NY IT-204-LL) to report any business income derived from operations in NY.

- So you end up paying applicable taxes related to your business activities in both DC (state of organization) and NY (for income sourced to NY) rather than having to switch everything over to just NY.

Overall, no need to transfer or redomicile your current DC LLC - just register as a foreign LLC in NY and be prepared to meet both states' tax filing requirements annually.

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