Relocating Your Business to Texas

Thinking about relocating your business to Texas? You’re not alone. With its business-friendly climate, lack of state income tax, and thriving economy, the Lone Star State is a prime destination for companies looking to grow and succeed. But moving your business isn’t as simple as packing up your office and setting up shop in a new location. There’s a relocation process to follow to ensure a smooth transition, from legal paperwork to tax considerations and everything in between.

If you’re wondering how to relocate your business to Texas, this step-by-step guide will walk you through planning your move, registering your business, and making a seamless transition.

Step 1: Notify Your State and Wrap Up Loose Ends

Before you can make Texas your business’s new home, you’ll need to officially close out your operations in your current state. Depending on your business entity and local regulations, you may need to:

• Dissolve or withdraw your business if it was registered as an LLC or corporation in your previous state.
• Notify your state’s Secretary of State or equivalent agency to avoid future tax liabilities.
• Cancel local permits and licenses that no longer apply to your business.
• Update contracts with vendors and customers to reflect your upcoming move.

If you’re not sure where to look, you can check with your state’s Department of Commerce, Economic Development office, or Secretary of State to ensure you’ve covered all your legal bases before relocating your business.

Step 2: Choose a New Location in Texas

Finding the right home for your business in Texas is a crucial part of the relocation process. Whether you’re leasing commercial real estate or purchasing property, take time to research the best location based on your target customers, vendors, and industry needs. If you plan to purchase, you might want to work with a local commercial lender who can help you with financing options, guide you through the process of business relocation, and streamline the transition.

In addition to whether you plan to lease or buy space, there are several things to consider when selecting a business location:

• Proximity to customers and suppliers
• Local economic conditions and tax implications
• Accessibility for employees and clients
• Zoning regulations and business permits required

If you’re unsure where might be a good geographical fit for your business, working with a commercial real estate agent or business relocation consultant can help you navigate the process.

Step 3: Register Your Business in Texas

Once you’ve chosen your new location, it’s time to legally establish your business in Texas. While you don’t need a general business license to operate a business in Texas, there are several steps you’ll still want to complete to make sure you’re officially official. Here’s what you need to do:

• Register your business with the Texas Secretary of State: If you’re moving an LLC or corporation, you’ll need to file a Certificate of Registration to legally operate in Texas. (The Secretary of State also has useful FAQs for foreign or out-of-state entities moving to Texas.)
• Obtain a Texas Sales Tax Permit: If your business sells taxable goods or services, you must register for a sales tax permit through the Texas Comptroller’s Office.
• Apply for necessary business licenses and permits: Requirements vary by industry and city, so check with the Texas Business Permit Office to ensure compliance.
• Update your federal business information: Submit Form 8822-B to the IRS to change your business’s mailing address and location.

Texas has streamlined business registration processes to make it easier for out-of-state companies to establish operations. Completing these steps early will help you avoid potential legal or financial setbacks.

Step 4: Plan for Employee Relocation and Operations

If you have employees moving with your business, relocation can be one of the biggest challenges. A well-structured employee relocation plan can help ensure a smooth transition.

Key considerations to consider include:

• Communicate early and clearly about the moving timeline with your employees.
• Offer relocation assistance for key employees.
• Update payroll and tax withholdings to reflect Texas employment laws.
• Ensure compliance with Texas labor laws regarding wages, benefits, and worker protections.

If you’re hiring locally, Texas offers a robust workforce with various recruitment resources, including the Texas Workforce Commission.

Step 5: Update Business Information and Notify Customers

Once your move is underway, it’s time to update your business’s public-facing information to maintain brand consistency and customer trust.

Be sure to do the following:

• Change your business address on your website, business cards, and email signatures.
• Update social media and online listings to reflect your new Texas location.
• Notify vendors, clients, and partners about your relocation.
• Redirect mail and phone services to prevent communication gaps.

Keeping customers and vendors informed about your move will help maintain strong relationships and prevent disruptions.

Step 6: Move Your Business Assets with a Commercial Moving Company

Relocating office equipment, inventory, and other business assets is a significant part of the move. Hiring a commercial moving company that specializes in business relocations can save time and reduce stress.

For a smooth move, it’s a good idea to:

• Create a moving checklist to stay organized.
• Schedule your move during non-peak hours to minimize business downtime.
• Back up important data before moving computers and servers.
• Insure valuable business equipment in case of damage during transit.

Taking these steps ensures your move is efficient and minimizes disruptions to daily operations.

Step 7: Open a Texas-Based Business Bank Account

If your current business bank is only available in your old state, consider opening a new account with a Texas-based financial institution. A local bank or credit union can offer personalized support and resources for business owners, making it easier to manage finances in your new location.

At Amplify Credit Union, we offer fee-free business banking designed to give you more financial flexibility as you grow in Texas. We also provide customizable merchant services and treasury management solutions to help you manage payments and cash flow more efficiently. Plus, as a credit union, we’re member-owned, which means you benefit from better interest rates and a more personal banking experience compared to traditional banks.

Some other benefits to banking locally include:

• Easier access to business loans and lines of credit
• Connections to local financial advisors and business networks
• Simplified tax and payroll management

Transferring business funds and updating payment processing systems ahead of time will help ensure a smooth financial transition.

Welcome to Texas!

Relocating your business to Texas is an exciting opportunity for growth and success. With careful planning, the right resources, and a clear relocation strategy, you can ensure a smooth transition and get back to focusing on what matters—growing your business.

By following these steps, you’ll be well on your way to establishing your company in one of the most business-friendly states in the country. Welcome to Texas—we’re glad to have you!

This article was first published on July 19, 2021.