If our foundation operations move to a new state, do we also need to change our state of incorporation?

It is generally more trouble than it is worth to change the state of incorporation. Doing so requires creating a new corporation in the next state, obtaining a new tax exemption for it, and then following complex rules to close down the old foundation.

If you are incorporated in one state but begin to have any major operations in another state, the foundation is required to file some kind of “foreign corporation” paperwork with the new state. Once that paperwork is filed, the foundation will have to comply with the reporting requirements of both states. Major operations means having an office location—even if a home office—a main staff person, and the like.

 

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