Six Legal Considerations to Make Before Relocating Your Business
Jul 03, 2021 12:39 PM EDT
You've started a business, grown a substantial client base, and now are looking to relocate. But have you considered all the aspects of moving your company, including the good, the bad, and the ugly? Relocation can be a complex and messy process that can present a litany of legal issues.
To swerve these legal bumps in the road, business owners can put relocation plans on pause and consider transitioning to a fully remote structure. Where to begin? Start by assessing whether or not your business model will fit into the remote workforce's mold. Then, centralize your systems via cloud-hosted platforms and solidify a communication plan. Finally, for optimal remote transition success, consider a virtual address from iPostal1. That way, you can maintain professionalism in the public eye and sidestep overhead costs, all while avoiding six legal issues that can come from relocation.
If all signs point to a no in the fully remote transition conversation and relocation is the clear solution to astronomical rent costs, draining talent pools, or space concerns, make these six legal considerations before relocating your business.
The stress of finding a new building for your business does not end after you find a location. There is still the looming tension of lease negotiations, where both parties could send the agreement back and forth several times while the terms get worked out.
To avoid backing up into a corner, don't agree to terms that are less than ideal. While some lease agreements can be easy, this situation can escalate tensions and legal fees if the terms can't satisfy both parties.
If you are moving from one state to another, you need to make sure that the business registration does not lapse during the process. Understanding and complying with the registration laws set in place is crucial in adhering to business-saving rules and regulations. By reviewing these registration laws under a microscope, the threat of losing the company you've worked tirelessly to build will dissipate.
The act of relocating has an immense impact on not only you but all of your employees. Before moving forward with research on your desired location, check over your employment contracts to see if you can legally relocate your employees to a new workplace. Depending on the handling of the move, employee situations, and contractual agreements, relocation could result in tension and legal problems.
While the active cases are beginning to reach manageable levels, there are still concerns for those who live with high-risk people or who are high-risk themselves. During this time, the ADA has provisions in place for people concerned about returning to the workplace. Note that with these regulations in place, it's wise to take extra precautions when relocating.
If you have settled on a target state to move your business to, consider how the taxes compare to your current state. There could be massive differences in the taxes you have to pay or the tax breaks that your company qualifies for, so it's best practice to assess all the tax information before relocating your main office.
While profit is not necessarily a legal issue, a lack of profits after a move could unleash a slew of legal problems. If the worst happens and profitability drops, it could result in laying off employees that have relocated. Following these terminations, unwanted and volatile legal battles could ensue, which would further bruise your bottom line.
However, avoiding these legal battles is entirely possible when you consider a remote model. Are you wondering if it's possible to expand your company without moving? If so, be sure to weigh the pros and cons of a complete office relocation.
Even though relocation is an exciting change of pace, the reality is that it comes with obstacles that can escalate into legal problems. While a remote structure could eliminate a majority of these issues, it's not a structure that is perfect for everyone. If you choose to continue through the relocation, paying attention to the details can help you ensure a smooth move.