I have a s-corp (with CC debts) in NY and recently move to WA. What do I need to do to move my business to WA?

· · 0 views
1 officer NY s-crop (selling crafted products on online marketplaces, almost no inventory – just materials, very little assets).
The business owes around 6k to a credit card (business account) and I am not able to pay it off at once. I plan to pay it off systematically within this year.
My understanding is that dissolving NY s-corp will result in filing bankruptcy as I cannot pay cc debt right away. This is something I would like to avoid. What can I do to move the s-corp to WA? I see terms like conversion, merger, reorganization, etc., but which one?
Also, is it possible to switch to LLC in WA while keeping the EIN? S-corp proves to be too much paper works for my small and simple operation.

2 Attorney Answers

You will need to register your business with the WA Secretary of State and the Department of Licensing. You may register as an Limited Liability Company, if you wish. When you register with the Department of Licensing, you may elected to include on your registration the NY Company as a "Doing Business As" (dba).
You can close the NY business and still payoff on the credit card; hence, there is no bankruptcy proceedings necessary. That also goes with any other creditor that you may owe.
If you do decide to switch to an LLC, you will need to notify the IRS of this change. Good luck.
I agree with Mr. Gates that you first want to register your NY s-corp with Washington state authorities as a foreign business doing business in Washington state, and obtain proper state and city business licenses. I also agree that no bankruptcy proceeding is involved in your desired plans.
However, further information about your business' goals is needed to better determine how you should restructure your business here in Washington, what type of business entity best fits these needs, and what next steps you need to take. This involves tax considerations, debt issues (as you highlighted), and how you want to grow and manage your business going forward. Working with a qualified Washington state business attorney can assist you in these steps. Good luck!

Sign in to answer this question.

Sign In or Sign Up as an Attorney