If you want to move your nonprofit state of formation to a different state, your 508 will need to go through the process of changing company domicile (also called “domestication”). You can change the domicile from any state but only into a state that supports domestication.
The advantages of domestication include the ability to apply for sales tax exemption in the state (if available), keeping the same Federal Tax ID (EIN), keeping the same company structure, and, with some states, also keeping the original date of formation. Compared to a simple Foreign Entity Qualification, the disadvantages of domestication include cost and relative complexity of the process.
There are several steps necessary to complete domestication that they vary from state to state:
- Typically, the first step after making sure your company is in good standing would be to obtain certified copy of articles and a certificate of good standing from the original state of registration.
- Most states require your nonprofit corporation be qualified as a foreign entity in the state.
- Then, Articles of Domestication are drafted and filed with the new state.
- Fourth step includes dissolution of the entity in the old state (“domesticated out”) and submitting confirmation of dissolution with the state of domestication.
The following states support domestication in one form or another (please note that some states allow domestication of corporations ONLY, and in a few cases statutes of one states do not permit domestication in another, e.g. New York to California and vice versa): Arizona, California, Colorado, Delaware, District of Columbia, Florida, Idaho, Indiana, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Mississippi, Nebraska, Nevada, New Hampshire, New Jersey, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, Wisconsin, and Wyoming.