Hello folks. Need an advice

You should ask a texas lawyer but if it is a s corp, you should be able to move it to texas, the reason for a texas lawyer.

 

Is there a tax reason to stay in IL? I thought Texas was a better set up but maybe I am wrong.

 

Create an S-Corp in Texas, and have it purchase your old Illinois S-Corp for $0.01.

The most important thing might actually be to formally inform the Illinois Secretary of State that your old Illinois S-Corp no longer exists.

You don't want Illinois to keep breathing down your neck once you've relocated to Texas.

Rush Limbaugh had to wage holy war with the state of NY for DECADES because NY felt that every time Rush stepped foot in NY, he was re-establishing residency there, ergo NY could tax his annual earnings for that year.

It got so bad that Rush pretty much had to hole himself up in his Florida house, and never again physically return to NY.

You could be in the same boat - after you become a Texan, if you haul a load to Illinois, you might have Illinois state troopers pulling you over and claiming that the system is showing that you owe "thousands" of dollars in unpaid Illinois taxes and/or state of Illinois fines.

You need to make sure it's a clean break, and you mustn't allow the state of Illinois to have any angle by which they could make claims upon your money or your property.

And filing the paperwork for un-incorporating that Illinois S-Corp [and then making absolutely certain that the state of Illinois actually un-incorporates it] will be at the top of the list of things you need to accomplish.

 

For instance, it strikes me as being entirely likely that Illinois might very well impose INTEREST on unpaid fines.

So, suppose, say, you left Illinois today, for Texas, and you forgot that you had a $100 fine on the Illinois books when you left.

Then suppose it's ten years from now, and you're hauling a load through Illinois, and the trooper pulls you over, and says, "Son, you've got a $1000 fine on your record..."

Because the state of Illinois had been compounding interest on that original fine for ten years.

So, like I was saying above, make sure that EVERYTHING has been removed from the books in Illinois.

Don't give them even the slightest little angle to come after you.