More About Professional Corporations
Moving a law firm from New York to CA had become a huge challenge for our client, but Incorporation Attorney knew how to step in and solve the issues that had come up. In theory, this should be easy through the process of conversion. However, two major obstacles prevented us from seamlessly carrying out the task. First, New York does not allow corporations to simply convert and move their corporate entity to another state. Second, California does not permit a corporation domesticated in another state to register under the same name as an existing California corporation.
To move the law firm from New York to California, Incorporation Attorney suggested a creative solution. First, the client had to form a new California law corporation under a temporary name approved by California’s Secretary of State. Once this new entity was established, the New York law firm could then merge into the newly formed California corporation. However, this merger process required the California corporation to have a distinct name from the client’s desired law firm name due to the naming conflict.
The final step involved filing to change the new entity’s name to the client’s preferred law firm name from New York. This process involved a series of legal steps and filings – from setting up a new corporation with a slightly different name at the time of the merging, to closing the other corporation in New York to make the original name available again, to changing the name of the merger corporation back to the original name after a few weeks . Incorporation Attorney carefully guided the firm through this process, ensuring compliance with California’s corporate regulations and minimizing potential delays or complications.
Find out more about the challenging situations that our client faced and how we were able to make things happen.
Can You Simply Move Your Law Firm from New York to CA? Our Client Finds Out the Answer the Hard Way…
Life doesn’t always keep you in one place. Even as a lawyer operating your own corporate law firm, circumstances and life changes may have you looking at moving to another state. You may be looking at moving your law firm from New York to California to tap into new markets, take advantage of the “Golden State’s” temperate climate, or simply it may be the change you or your family needs.
However, the process of relocating your law firm’s corporate entity from one state to another can be complex, particularly when dealing with conflicts over corporate names. This case study explores the challenges faced by a New York-based law firm when attempting to move their operations to California, and the creative solutions that Incorporation Attorney employed to navigate the intricate legal requirements.
The Challenge: New York’s Restrictions and California’s Name Conflict
Our client decided to move their law firm from New York to CA. Using the legal process called conversion, which lawyers are familiar with, this move should be easy. Sure, there will be requirements and conditions to fulfill, but nothing a law firm cannot do. Wrong!
Back in the day, moving a corporation from another state to California was almost effortless. A business owner can simply send a letter to the California Secretary of State informing them of your company’s identity. Since the system has shifted to electronic filing, such processes became challenging.
And our client’s corporation is one of the casualties, having to deal with the problems.
Problem #1: New York Doesn’t Allow Corporations to Move to Another State, But Can Lawyers Move States Through Conversion?
One of the legal maneuvers known among lawyers is conversion. Conversion is basically the process of moving your law corporation from one state to another. To move a law firm from New York to California, you must inform the state by submitting legal documents. This process seems a fitting solution to what our client wants to do.
But, while other states allow this, New York doesn’t allow corporations to move out of state and this is a significant drawback that had to be dealt with strategically. The process is more complex and can be a real pain in the neck if done incorrectly with all the time-consuming processes.
In order to move law firm from New York to CA, a merger would be a viable alternative.
California Doesn’t Allow a Corporation That’s Domestic to Another State with the Same Corporate Name
Even though New York doesn’t allow law corporations to move, the state does not prevent you from merging with your corporation. Now, the law firm has a way out and the process would look like this:
- The client must form a California Law Corporation.
- Once the corporation is set up, the client must start the merger with New York into California.
- When the state of California accepts the merger, the client will inform the IRS about the corporate name and EIN number.
The client also intends to use the same corporate name used in New York since they already have an established branding and client base. The problem is, the State of California does not allow certain professions to have a corporation that’s domestic to another state, including law professions. And, unfortunately, he had already created a corporation with the same name in an attempt to get ahead of things. However, this meant he couldn’t properly “merge” or “establish” his new corporation with the identity and experience of the old one in California’s eyes.
This restriction posed a new challenge, and a meticulous one at that, due to the intricate and time-consuming process.
The Solution: A Strategic Name Change and Merger
Faced with this naming conflict, Incorporation Attorney developed a creative solution:
Forming a new corporation in California
The first step to solve one major issue is to form a corporation and register a slightly different name that the Secretary of State will approve. Afterward, the team will proceed with the merger without violating California’s naming regulations.
Dissolve the California Corporation Using the Client’s Name
To address the naming issue, the team must cancel the newly registered name registered in California. Then, changing the new name back to the name that the client wants, hence the original law firm name in New York.
Navigating the Complexities
The process of canceling the temporary name and changing the newly merged corporation’s name to the firm’s desired moniker involved a series of legal steps and filings. Incorporation Attorney carefully guided the firm through this process, ensuring compliance with California’s corporate regulations and minimizing potential delays or complications.
Throughout the merger and name change process, the firm maintained close communication with their legal team and state regulators, ensuring that all required documentation was properly filed and all fees were promptly paid.
Are You Ready to Move Your Law Firm from New York to CA? Remember These First….
If you want to move law firm from New York to CA, be ready for the challenges. The process is painstaking and needs a lot of patience and determination. The first thing that you need to do is know whether or not you’ve been registered to do business in California. Next, you need to figure out whether your home state allow conversions or go through the process of merging so you can think things through.
Our client certainly had a tough time strategizing their way completely out of New York and re-establish his law firm in California. It seemed almost impossible, but with the help of Incorporating Attorney, the team made it happen. A lot of work needed to be done but all’s well that ends well.
If you are thinking of moving to another state or planning to incorporate, Incorporation Attorney is here to guide you through the legal processes – from the easiest up to the most complex. Our team of incorporation experts will not only help you form your corporation, but we will have your back on anything legal.
To learn more about the legal services that we offer, visit our website or call us today!