Continuation vs Domestication: Understanding the Differences

If you’re a business owner wanting to move your operation to another state, you may have heard of the terms “continuation” and “domestication.” Despite their apparent similarity, these names refer to two distinct procedures for relocating a corporation between states. The differences between domestication and continuation will be covered in this article, along with some related queries like how to relocate a business to Wyoming, how long does it take to obtain a Wyoming EIN, how to register as a Wyoming registered agent, and whether a Wyoming LLC can conduct business in Florida.

A business can continue to operate in a different state while still maintaining its legal status in the one where it was founded. This indicates that the entity is exempt from the new state’s legal requirements to dissolve and reform. Instead, it enrolls as a foreign entity in the new state and carries on with business as usual. When a company seeks to grow its activities into other markets without sacrificing its well-established identity in its home state, continuation is sometimes used.

The process of domestication, on the other hand, involves the dissolution of a company in its current status and its reformation under the laws of another state. This requires the entity to apply for a new EIN and submit articles of incorporation or organization in the new state. When a company wants to relocate its activities and headquarters permanently to a new state, domestication is typically used.

Let’s respond to some similar queries now: How can I relocate my company to Wyoming? You must submit articles of domestication to the Wyoming Secretary of State in order to relocate your company to Wyoming. Additionally, you will need to register your firm with the Wyoming Department of Revenue and get a new EIN from the IRS. In Wyoming, how long does it take to obtain an EIN? The IRS normally requires 4-5 weeks to provide an EIN. On the other hand, if you apply for an EIN online, you might get it right away. How do I register as a registered agent in Wyoming? You must be a Wyoming resident or a company with a permit to conduct business there in order to register as an agent in Wyoming. You have the option of appointing yourself as your registered agent or working with a reputable registered agent firm.

Can an LLC from Wyoming do business in Florida? As long as it registers with the Florida Secretary of State and receives a certificate of authority to conduct business in Florida, a Wyoming LLC is permitted to operate in Florida as a foreign entity.