Taxpayers (shareholders) decided to move a CA corp to a NV corp. All the shareholders are moving from CA to NV. It may take 1-2 years.
Secretary of State in CA says, " A California Corp cannot convert to a foreign entity. "
Now taxpayers (shareholders) set up an Nevada entity (corporation or LLC) first.
Then Shareholders merge the NV entity and the CA corp.
Dissolve the CA corp.
Is that a practical procedure? It is should be tax free. Right? Will the new corp keep the original EIN?
What are the reasons that CA allows CA LLC, LP, GP to convert to a foreign entity but a CA corp cannot convert to a foreign entity?
Thank you!