I am in the process of relocating from California to North Carolina for my wife's career. I am the majority owner of an S-Corporation
in CA (my wife own's a minority share, granted to her when she was working for the company). I want to move the company as a legal entity from CA to NC, and I'm not sure the best way to do so (I'm also open to changing to an LLC
if that makes sense for tax purposes, and my wife is also willing to give up her share of ownership if there's any reason to do so).
I understand that there are several options, but I'm not sure of the implications of each (both in terms of cost and paperwork to process, and in terms of any tax implications):
1. Form a new company in NC, and dissolve the company in CA. (I'm guessing this has the most paperwork associated with it, and probably fees too? And would require a new EIN, etc.?)
2. File a conversion in NC (I'm not sure I know what I'd need for this - it appears a simple filing of my Articles of Incorporation from CA with a form to the SoC of NC and a small fee? - can it really be that simple?) and then dissolve the company in CA.
3. File as a foreign corporation
in NC, and then suspend operations in CA (this made more sense when we were considering that we might return to CA in a couple of years - that's no longer so certain).
My guess is that #2 is the most straightforward... is that correct? What would I need to do with respect to existing banking and accounting for the CA company? Could I transfer the small balance of cash from a bank in CA to NC - or is it more complicated? (I'm sure I'd have to file a 'final' return with the state of CA, but I don't know if that means I also need to start all my accounting and banking 'from scratch' in NC.)
Phew - the questions started piling up once I started typing!