Suppliers often have the need to relocate. Sometimes it’s a business-driven decision; other times it’s a family-driven one. Moving to a new state opens up a number of legal considerations that aren’t immediately obvious to the average person. Thing is, if you don’t follow some basic steps to protect your family and your assets, as well as your business, you can be caught off-guard by a number of expensive repercussions.
There Isn’t One Set of Rules
Never make the mistake of assuming all states share a single set of federal laws. Estate planning, last wills and testaments, and irrevocable trusts must be updated and filed when you move from one state to another. According to business and real estate lawyer Richard Levin, a shareholder with Hall Estill, “If you have all of your work done in North Carolina or California and you move to Arkansas, it may not be enforceable.”
There are special rules and regulations requiring an attorney’s help to make sure documents executed in another state are valid in Arkansas. Each state has its own set of laws pertaining to any particular subject. For instance, if your last will and testament is not executed according to Arkansas state law after you move into your new home in Rogers, one consequence is your will can no longer be enforceable.
“Everything you did to take care of the kids is now in limbo,” Levin says. The person who ends up making a final decision in handling your estate will be a judge, not one of your family members.
Same Applies to Relocating a Businesses
This consideration applies not only to personal affairs but also to relocating businesses. For example, if you move your business to Arkansas from Georgia, you must register the company with the secretary of the state. It makes no difference if your business is a domestic or foreign corporation, a partnership, or a limited liability company. To operate in the state of Arkansas, an attorney can help you determine if your existing registration in another state is recognized in Arkansas and to find out what other documents you need to file.
“The consequences are expensive,” says Levin, due to penalties, interest, and various other charges the state will levy on you for not filing. “It’s possible you may not be allowed to do business until you have filed.”
The repercussions for not filing are far more expensive than taking the time and due diligence to determine what you need to file for your personal affairs or business. Engage a legal expert, like one of the attorneys at Hall Estill, who will set you on the right track to serve your best interests. You can contact Hall Estill at 479-973-5200.