I've helped several clients through interstate LLC moves, and there are a few key points to add to the excellent advice already shared here: First, regarding the EIN question - you definitely need a new one. The IRS is very clear that when you dissolve an LLC and form a new one (even with identical operations), it's considered a new legal entity requiring a new EIN. Don't try to use the old EIN with your new Colorado LLC as this will create tax filing complications. For the dissolution/formation process, I'd strongly recommend consulting with attorneys in both states. Arizona has specific dissolution requirements including publication in some counties, and Colorado has its own formation procedures. The timing matters too - you want to avoid any gaps that could affect your business continuity or create liability issues. One often-overlooked aspect is sales tax registration. If you collect sales tax, you'll need to close your Arizona sales tax account and register for a new one in Colorado. This can take several weeks, so plan accordingly. Also consider whether you have any Arizona-specific business licenses or permits that won't transfer to Colorado. Some professional services require state-specific licensing that you'll need to obtain in Colorado before you can legally operate there. The statutory conversion option mentioned by Amina is worth exploring too - it might save you significant time and paperwork if both states allow it.

Having gone through a similar LLC move from New Jersey to Delaware about 18 months ago, I can confirm what others have shared about needing a new EIN. What I'd add is to be prepared for some unexpected admin work with your existing business relationships. One thing that caught me off guard was that several of my long-term clients required me to go through their vendor re-registration process as if I was a completely new supplier, even though I explained it was the same business just relocated. This included new background checks, insurance verification, and in one case, a completely new contract negotiation. Also, if you use any business software subscriptions tied to your EIN (like certain accounting software, business credit monitoring, etc.), you'll need to update those with your new EIN. Some providers treated this as a new account setup rather than an account transfer, which meant losing historical data in a few cases. For your Arizona to Colorado move specifically, Colorado is pretty business-friendly for LLC formations, but they do require a registered agent if you don't have a Colorado address initially. Make sure to factor that into your timeline and costs. The whole process was ultimately worth it for me, but definitely plan for more complexity than it initially appears!

One thing to consider - the IRS has been putting extra scrutiny on ERC claims lately, especially larger ones. The "issue" they mentioned might not even be related to the owners' tax debts, but could be part of their general enhanced review process. Some specific things they're looking at closely: - Whether the business actually had the required reduction in gross receipts - If government orders truly affected your operations - Whether the qualified wages were calculated correctly - If any owners/partners were improperly included in the wage calculations It might be worth preemptively addressing these points if you haven't already, rather than assuming it's about the personal tax debts.

I went through a very similar situation last year with our partnership's ERC claim. We had a $900K claim stuck for 10+ months, and one of our partners owed about $400K in personal taxes. The IRS initially flagged our claim for what they called a "nominee review" - essentially checking if the business was being used to avoid personal tax collection. What ultimately resolved it was providing detailed documentation showing: 1. The partnership operated as a legitimate separate business entity 2. All payroll and business expenses were paid from business accounts 3. The partner with tax debt had no check-signing authority on business accounts 4. We maintained proper corporate formalities (partnership meetings, separate books, etc.) We also had to submit a formal statement explaining that the ERC was earned by the business entity through legitimate qualified wages paid to employees, completely separate from any partner's personal tax situation. The whole process took about 4 additional months after we submitted the extra documentation, but we did eventually receive the full credit. The key was demonstrating clear separation between the business operations that earned the ERC and the partner's personal tax issues. I'd recommend getting ahead of this by proactively submitting documentation that proves your business operates independently, rather than waiting for them to request it.

I switched from simplified to regular method this year and found out you can actually deduct a portion of home repairs that benefit the entire house! I had my central AC replaced for $7,500 and got to deduct 18% of that cost (my office percentage). But be careful - if the repair only benefits personal spaces, you can't deduct any of it. Also, don't forget about these expenses for the regular method: - Property insurance - Security system - Cleaning services - HOA fees - Home maintenance

You're absolutely right about the math! In high-rent areas like yours, the simplified method rarely makes sense. I'm in a similar boat - paying $3,200/month rent in Seattle with 25% business use, so I'm looking at around $9,600 in rent deductions alone with the actual expense method. The main reason people choose simplified isn't because it's better financially, but because they're intimidated by the recordkeeping. You need to track and document every home-related expense throughout the year - utilities, insurance, repairs, etc. Plus you have to maintain floor plans and usage logs in case of an audit. But honestly, once you set up a simple spreadsheet or use accounting software, it's not that complicated. And the extra deductions are usually worth thousands more than the $1,500 cap. Just make sure you're using the space exclusively for business - that's the biggest audit trigger the IRS looks for.

Don't forget to check if the bond still earns interest! Some EE bonds continue earning interest for 30 years from issue date, but after maturity (which usually happens at 20 years), they might still earn interest for another 10 years. If your bond was from the 1990s and matured in 2018, it might still be earning some interest even now, which could affect your decision about when to cash it.

Just wanted to add something important that might affect your tax situation - since you inherited the bond, you may be eligible for a "stepped-up basis" depending on how your grandmother's estate was handled. For inherited EE bonds, the IRS generally allows you to choose between reporting all the accrued interest yourself when you cash it, OR having the estate's final tax return report the interest that accumulated up to your grandmother's date of death. If you go with the second option, you'd only be responsible for any interest earned after her death. This could potentially put you in a lower tax bracket if your grandmother was in a higher bracket than you are. You'll want to compare the tax implications of both approaches. The bank will issue a 1099-INT for the full interest amount, but you can allocate it properly between the estate and yourself with proper documentation. Also worth noting - if the bond was held in joint ownership with rights of survivorship, the tax treatment might be different. Check the bond registration carefully to see exactly how it was titled.

Your client needs to understand that attempting to shield ERC funds from a valid $24 million judgment is not only unlikely to succeed, but could expose them to serious legal consequences. As others have mentioned, once ERC funds are received, they become regular business assets subject to collection. Given the size of both the judgment and the expected ERC payment, I'd strongly recommend your client consider a few key points: 1. **Immediate settlement negotiations**: Sofia's suggestion about offering the $8M ERC as settlement for the full judgment is probably their best option. A 33% recovery might be very attractive to the landlord versus the uncertainty of collecting the full amount. 2. **Timing is critical**: If the landlord's attorneys become aware of the incoming ERC funds, they'll likely file for garnishment before the money even reaches your client's accounts. The sooner settlement talks begin, the better. 3. **ERC audit risk**: Dmitry raised an excellent point about IRS scrutiny. An $8M claim will almost certainly trigger an audit, and if the claim is reduced or denied, your client loses their primary settlement leverage while still owing the full judgment. 4. **Asset protection alternatives**: Rather than trying to hide funds (which could constitute contempt of court), explore legitimate options like appealing the judgment or filing for bankruptcy protection if the business truly cannot pay. The reality is that $8M toward a $24M judgment is a significant payment that most creditors would seriously consider, especially given collection uncertainties.

This is a really challenging situation that highlights why having proper legal counsel is so critical when dealing with large judgments and incoming funds. From what I've seen in similar cases, the creditor's ability to intercept ERC funds before they even reach your client's accounts is very real - especially with a judgment this large where the landlord's attorneys are likely being very proactive. One thing I haven't seen mentioned yet is the potential impact on your client's other business operations. If they're still actively running the business, having $8 million suddenly seized or tied up in legal proceedings could create additional operational problems beyond just the judgment itself. I'd also suggest documenting everything about the settlement negotiation attempts. If your client is genuinely trying to work with the landlord to resolve this and the landlord refuses reasonable offers, that could be relevant if there are any future disputes about good faith efforts to satisfy the judgment. The timing pressure here is intense - between potential IRS audits on the ERC claim and the creditor's ability to garnish incoming funds, your client really needs to make some decisive moves quickly rather than hoping they can somehow protect these assets through creative structuring.