From TaxAlmanac, A Free Online Resource for Tax Professionals
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> "transfer of corp between states"
Clarklarry (talk|edits) said:
| 14 August 2007
|
| I have a new question from a client: is it possible to transfer the "home" state of a corporation? In other words, can a corp be "moved" from one state to another? My first response to him is NO, but I should CMA and make sure - thanks for any responses!
|
WesR (talk|edits) said:
| 14 August 2007
|
| Yes dissolve in state one and reincorporate in state 2 the lawyers have a "special" name for it. I think it falls under the tax free reorg rules have done it with clients. bye
|
KatieJ (talk|edits) said:
| 14 August 2007
|
| This would be an IRC Sec. 368(a)(1)(F) reorganization (colloquially referred to as an F reorg), a mere change in the place of incorporation. It has no income tax consequence -- no gain or loss recognized, and no change in the inside basis of the corporation's assets. Your client needs legal assistance to accomplish this, although you may find that all of the forms and instructions for doing it are available on the web sites of the Secretaries of State of the two states involved. In any event, unless you are a practicing attorney, YOU as a tax preparer/adviser should NOT be involved in the legal process. The client may be able to do it himself, but I'd advise involving an attorney.
|
Riley2 (talk|edits) said:
| 15 August 2007
|
| Clarklarry, certain states allow a corporation chartered in another state to simply transfer its articles of incorporation to the new state. This process is known as "domestication." As KatieJ noted, this would generally be treated as a Type F reorganization and the new corporation would be able to use the TIN of the old corporation.
|
To join in on this discussion, you must first
log in.
