proprietorship to INC or LLC?

[nic-nac]

What is the name of your state? NJ

I am currently doing business as a sole proprietorship, and am thinking of changing to an incorporation. Incorporating either in NJ, or NY. I was wondering, after incorporating, if after a year or two I move to a different state, maybe Florida, do I need to move the corporation or can I rent an office in NJ that will later forward my mail to my new address, there by keeping a physical office in NJ while doing the actual work from a different place. Is an INC or LLC better suited for this kind of situation. Which has less paperwork to setup?

 

[clueless3]

do I need to move the corporation or can I rent an office in NJ that will later forward my mail to my new address, there by keeping a physical office in NJ while doing the actual work from a different place.

If your company "does business in" any state, you need to register in that state, IN ADDITION TO registering it in the "home" state. In your case, you need to register it BOTH in NJ and FL.

However, will your company do any kind of business in NJ eventually?? If not, then why keep the office there AND have to pay fees for MULTIPLE states??? If your company does business in both states, then register it in both states. If not, register it in one state and keep the office there. The simpler the better.

Now, if you have existing customers and want to keep the same company presence then yes, you should keep the same physical address (and have to pay for all expenses accordingly).

Is an INC or LLC better suited for this kind of situation. Which has less paperwork to setup?

The LLC has less paperwork to set up and to maintain. However, it's not necessarily "better suited" for your situation. You need to weigh your priorities and choose one accordingly, NOT based on the amount of paperwork needed to run it but by other criteria.

 

[nic-nac]

So, if i start my business while i'm in NJ, and then later move to FL, is it possible to re-locate an INC or LLC company?

 

[clueless3]

No, you can't "relocate" an LLC or a Corp. Yes, you can register another one in FL and dissolve the former one in NJ, if you choose to. The LLC and Corp are state products; you need to register it in the states that you "do business" in, individually.