I currently have an LLC registered in California but I just moved to Massachusetts. Though I still plan on pursuing clients in California (a...

Question

I currently have an LLC registered in California but I just moved to Massachusetts. Though I still plan on pursuing clients in California (and internationally for that matter), my physical address will be in Massachusetts. Since I am 100% owner of the LLC and my business is more of a freelance gig than an actual small business, how should I move the LLC from CA to MA and should I keep it as an LLC? I do plan to bring on another person in the coming year or so, but until then, I will collaborate with external freelancers/vendors on projects and pay them out of pocket. I just want to make sure that my business is structured the best way for me right now as a freelancer paying other freelancers for help, not employees. Also, concerned about taxes. Even though I have an LLC, the projects I've been working on, I haven't been getting paid through it since I do not have a business checking account. I've been using my own name and social security number. Please advise.

Answer

Your best bet is to convert to a Massachusetts LLC or file as a Foreign LLC or simply start a MA LLC and close the CA LLC.

All you need to open an LLC banking account is to a copy of your articles and an FEIN number. The use of freelancers is more complicated and requires a bit more information. You need to make sure they are not acting essentially as employees and would be covered by MA or Federal definition of an employee.

If you are being paid directly by customers you would recognize income on a Schedule C or your 1040. If you filed a one-person LLC it would be reported the same way.

If you wish to discuss the matter more fully without obligation, please call me.