Your Business Deserves To Thrive

Head East Young Man: Moving Your Business from California to Texas (Part IV of IV)

On Behalf of | Jan 7, 2017 | California Law Update, LLC, Texas Law Update, Uncategorized

So you are moving from California to Texas?  What about existing business?

In our experience, may people move their legal entity as part of a relocation. They just don’t want to be dealing with the old state any more.

Existing Contracts. Obviously, the first issue is the XYZ, LLC, a California limited liability company is now XYZ, LLC, a Texas limited liability company. This is usually seen in bank accounts and contracts.

If there was a conversion this is usually just a matter of paperwork. However, if a merger or wind-up was selected (discussed in an earlier blog post, here) this may have violated or terminated some contracts.  You probably want to make sure this didn’t happen with your biggest customer! So which method you select will have big consequences.

Old Terms/New Location.  Many of your contracts may refer to California law, provide for litigation in California or otherwise be tied to your old location. You will want to systematically update these provisions.

New Laws.  Many laws and regulations are location specific, so you’ll have different laws to work with in Texas than California.  Employment law, for instance, may be completely different. So you’ll need to revisit your operations to make sure you aren’t violating the law in your new state.

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances.  This article should not be treated as legal advice to any person or entity. Each case is unique.  Past results do not guarantee future outcomes.

About the Author

R. Shawn McBride — R. Shawn McBride is the Managing Member of The R. Shawn McBride Law Firm, PLLC.  Shawn works successful, private business owners in their growth and missions to make a company that stands the test of time.  You can reach R. Shawn McBride at [email protected] or 407-517-0064.

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