Migrating from California is a long-standing, proven solution to the problems arising from California residency. Consistently since before 1990, each year, more people leave California than move to California (http://lao.ca.gov/LAOEconTax/Article/Detail/265). Certainly the motivation and causes for these moves vary from individual to individual, but if you’re interested in saving on California taxes, saving on taxes in general, saving taxes on the sale of your business, reducing employee lawsuits, cutting costs, reducing government regulation, or reducing your cost of living, leaving California is a viable and effective answer.
Choosing to leave the great State of California is a difficult decision indeed. For most individuals, the primary deciding factors will be personal, such as children and family, education, lifestyle, weather, retirement, and culture; while other important considerations are financial, legal, taxation, and business opportunity. The most important thing to remember is that leaving California is NOT an all-or-nothing decision. Advances in technology and legal systems make a myriad of configurations possible. Never make your decision based on one single factor.
The law firm of Lobb & Plewe, LLP has counseled clients on migrating from California to a new state for over twenty-five years. The first thing we review are the various configurations of a California migration-i.e. the multitude of options available for migrating you, your money, or your business, and not necessarily all three. A thorough and thoughtful review next considers the significant tax ramifications of each option, so that the migration completes in the most tax efficient manner. And for clients with operating businesses, we review the corporate, employee, and regulatory issues.
Last of all, as Nevada is a common target jurisdiction for our migrating clients, we also discuss Nevada’s tax scheme.
Please contact our office to schedule a consultation. Migration from California is worthy of serious consideration but should be planned with the help of an experienced attorney.