Moving a corporation between states

[imjulier]

I have a client who moved a small s corp from WA to CO in 2009. They are staying in CO and need to have tax ids, etc. issued by state of CO. They will not be doing work in WA state again. How is this handled? Do I dissolve the corporation in WA and then re-set up in CO but keep same federal tax id? Any other ideas on how this is done? My fall-back may be to have the client have an attorney handle it.

Thanks for any input.

Julie

[JohnH]

Your client could probably qualify the corp in CO as a foreign corporation, but that would mean continuing to file in WA as well since that is the state of domestication. Depending upon Franchise Taxes & other fees, plus your charges for tax prep, that might not be a good idea from the client's point of view in the long run.

If they really don't intend to return to WA, then it might be best to incorporate in CO under the same or a similar name, which would involve obtaining new ID numbers, etc because it is a new entity. This would probably also involve dissolving the corp in WA to stop the requirement to pay Franchise taxes and annual fees going forward.

However, there may be a host of other issues unrelated to taxes which need to be worked out, so I'd have the client consult a CO attorney to get the legal angles worked through.