#LegalBytes: The Official Podcast of Cummings & Cummings Law

Attorney and CPA Chad D. Cummings explains the top six mistakes business owners make when selling or transferring an LLC in this presentation. From operating without a proper operating agreement, to dissolving the company instead of redomesticating it, failing to register in the state where you actually conduct business, using free contract templates, commingling personal and business funds, and neglecting to update formation documents, these common errors expose owners to unnecessary risk, tax consequences, compliance violations, and lost value. This presentation walks through each mistake with practical guidance on how to avoid them and protect both the seller and the buyer during a transfer. Learn why redomestication is often the correct path instead of dissolution and how proper planning preserves your FEIN, contracts, credit history, and liability protection. If you are preparing to sell or transfer your company, this presentation will help you avoid costly pitfalls. Learn more: https://www.cummings.law

Attorney and CPA Chad D. Cummings explains the five critical steps every LLC owner must take before selling a membership interest in this presentation. From reviewing the operating agreement for transfer restrictions, to choosing between a membership interest sale and an asset sale, cleaning up compliance issues before due diligence, evaluating the state of domicile and the benefits of redomestication, and obtaining a professional valuation, each decision affects the purchase price, tax consequences, and risk of post-closing disputes. This presentation walks through the practical, legal, and tax considerations that protect both sellers and buyers and help maximize value in an LLC transaction. Whether you are preparing to sell or considering acquiring an existing LLC, these steps reduce surprises and position the deal for success. Learn more: https://www.cummings.law

Attorney and CPA Chad D. Cummings highlights Tennessee’s dramatic tax reform success in this presentation. The state has climbed from 38th to 8th on the Tax Foundation’s 2026 State Tax Competitiveness Index by fully eliminating its individual income tax, making it one of the best states in the country for pass-through businesses. Tennessee also maintains a pension system funded at 108 percent and strong fiscal discipline. This presentation shows how redomestication allows business owners to transfer a company legal domicile without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. For owners in neighboring states still paying income taxes ranging from 4.25 percent to 6.5 percent, the comparison is clear. Learn about redomestication: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings presents this overview of why South Dakota ranks second on the Tax Foundation’s 2026 State Tax Competitiveness Index. The state imposes no individual income tax, no corporate income tax, and no gross receipts tax, along with no estate tax, no inheritance tax, and no tangible personal property or inventory taxes. With a fully funded pension system at 100 percent and a simple, transparent tax structure built on sales and property taxes, South Dakota offers one of the most competitive environments in the country. This presentation shows how redomestication allows business owners to transfer their company to a new state without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. Whether you are coming from a high-tax state in the upper Midwest or looking for a stable zero-income-tax jurisdiction, this is the proper legal mechanism. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings examines South Carolina’s tax situation in this presentation. The state ranks 29th on the Tax Foundation’s 2026 State Tax Competitiveness Index and recently enacted a temporary reduction of its top individual income tax rate to 6.0 percent that expires after one year. South Carolina also maintains an uncapped capital stock tax on net worth, a split-roll property tax system that shifts a heavier burden onto businesses, and a pension system funded at only 69 percent. These structural issues continue even as incremental rate changes are made. Florida and Texas impose no state personal income tax and offer significantly more competitive environments. This presentation shows how redomestication allows South Carolina business owners to transfer their business to another state to Florida or Texas without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. If you own a business in South Carolina, a one-year rate cut is not a long-term solution. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings explains Rhode Island’s ongoing tax competitiveness challenges in this presentation. The state ranks 40th on the Tax Foundation’s 2026 State Tax Competitiveness Index with below-average performance across all major categories. Rhode Island maintains a graduated individual income tax topping out at 5.99 percent with a marriage penalty, a 7.0 percent corporate income tax, an estate tax, and complex unemployment insurance rules. A proposed surcharge would push the top individual rate to 8.99 percent. These burdens create a high effective tax environment in a small state where crossing the border is easy. Florida and Texas impose no state personal income tax and offer far more competitive structures. This presentation shows how redomestication allows Rhode Island business owners to transfer a corporation or LLC to a new state without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. If you own a business in Rhode Island, the ranking and policy direction make a compelling case for change. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings explains Pennsylvania’s tax situation in this presentation. While the state is reducing its individual income tax rate to 3.07 percent and phasing down the corporate rate toward 4.99 percent, local income taxes in many municipalities, particularly Philadelphia’s high wage tax, push the combined rate significantly higher for business owners. Pennsylvania also maintains a 7.49 percent corporate income tax, limited net operating loss offsets, a low Section 179 expensing cap, an inheritance tax reaching 15 percent, and other structural burdens. Florida and Texas impose no state personal income tax and offer far more competitive environments. This presentation shows how redomestication allows Pennsylvania business owners legally to move a company to a new state without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. If you own a business in Pennsylvania, the effective rate you actually pay may justify making the move. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings explains Oregon’s dramatic decline in tax competitiveness in this presentation. The state has fallen from 8th to 35th on the Tax Foundation’s 2026 State Tax Competitiveness Index, the largest drop of any state in the country, after adding a Corporate Activity Tax on gross receipts on top of its existing corporate income tax and maintaining one of the highest combined individual income tax burdens in the nation. In Portland, the combined state and local rate reaches 13.9 percent, and the state also imposes both an estate tax with a low $1 million exemption and other complex provisions. Florida and Texas impose no state personal income tax and offer far more competitive environments. This presentation shows how redomestication allows Oregon business owners to transfer their LLC or corporation to another state without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. If you own a business in Oregon, the trajectory of state policy makes clear why now is the time to act. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings examines Oklahoma’s tax competitiveness in this presentation. The state ranks 19th on the Tax Foundation’s 2026 State Tax Competitiveness Index after notable reforms including permanent full expensing, repeal of the capital stock tax, and reduction of the top individual income tax rate to 4.5 percent. However, Oklahoma still imposes bracket creep through non-indexed brackets, a throwback rule on corporate income, a combined state and local sales tax rate exceeding nine percent, and other structural provisions that fall short of zero-tax environments. This presentation shows how redomestication allows Oklahoma business owners to transfer a business to a new state without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. If you own a business in Oklahoma, the progress is real, but the state next door offers a better outcome. Learn more: https://www.cummings.law/redomestication/

Attorney and CPA Chad D. Cummings explains Ohio’s tax reality in this presentation. While the state is reducing its individual income tax rate to a competitive 2.75 percent, over six hundred municipalities impose their own local income taxes that can push the combined rate well above five percent in many areas. Ohio also relies on a Commercial Activity Tax based on gross receipts rather than profit, creating burdens that do not exist in states with no income tax. This presentation shows how redomestication allows Ohio business owners to transfer their company to a new state without dissolving the entity, without creating a new company, and on a completely tax-free basis while preserving the same FEIN, contracts, credit history, and bank accounts. If you own a business in Ohio, the headline state rate improvement is helpful, but the effective rate you actually pay may justify a better solution. Learn more: https://www.cummings.law/redomestication/