Small business owners sometimes decide to relocate their operations to a new state. While this is less common than in-state moves, relocating a business to a new state may bring a faster-growing market, access to more qualified employees, or simply lower overall operating costs. If you are considering this type of move, however, our years of experience have shown that there are several important factors to consider before deciding to relocate your business across state lines. Take a closer look at this brief checklist of factors before further developing out-of-state business moving plans.
1. Necessary Business Licenses and Certifications
All states have their own guidelines regarding what business licenses and certifications a business owner must possess. These license requirements vary depending on the type of business. For example, you may need a different license as the owner of a small call center than you would need for an insurance company. Likewise, you and your employees may need unique state-required certifications for doing certain types of professional work. For instance, a mental health counselor may need certificates provided by the state to offer services within state lines.
Necessary resources like water, natural gas, or electricity can make up a large portion of a business’s operating costs. In addition, natural resource availability can vary drastically from one state to the next, so the average costs of necessary utilities can be significantly different. For example, the cost of water in Connecticut is almost double the cost of water in Massachusetts. Also, be sure to check into internet service availability in any area you’re considering – high-speed fiber internet is only available in some areas.
States and municipalities can both have ordinances that affect business owners. For example, certain types of businesses may not be allowed in certain areas or only be allowed to be open at certain times of the day. In addition, operational laws and bylaws can affect how you operate your business, right down to the kind and size of signage you post. Before choosing to relocate, look into these ordinances and laws that could interfere with your profit margins or marketability.
State tax codes are a huge factor to examine before moving your business across state lines. States set their own tax rates and codes for business owners. And even though rates can be similar between neighboring states, this is not always the case. For example, in MA, corporations must pay eight percent of their net income in taxes. In CT, corporations pay 7.5 percent of net income. This half a percentage point may not seem like much, but can represent a substantial amount of money for a small business.
Whether you consider an in-state or out-of-state move for your business, the task can be a considerable undertaking. While you wade through the operational aspects and handle your priorities, we can help you navigate both the planning and execution of your office relocation logistics. Reach out to our team of industry professionals at Meyer Inc. to learn more about our full-service office moving options.