If you are planning to move a corporation or LLC out of California, do not treat it as a simple administrative filing; this presentation explains the top five issues that routinely turn outbound redomestications into expensive, multi-year disasters: California’s conversion and domestication steps require precise internal approvals, sequencing, and cross-jurisdictional compatibility or you risk an entity-in-limbo problem that invites suspension and corrective filings; the Franchise Tax Board often maintains leverage through lingering nexus, final return errors, and aggressive audit posture that can keep the $800 minimum franchise tax and other exposures alive well after the move; continuity of contracts, banking, credit, licenses, and intellectual property is not automatic and must be handled defensively to avoid defaults, freezes, and opportunistic disputes; mismatches between federal tax treatment and California conformity rules can trigger audit cascades and whipsaw outcomes if elections, basis, and classification details do not reconcile; and sloppy formalities during the transition can fuel alter ego, veil-piercing, and fraudulent transfer narratives in California’s plaintiff-friendly courts, creating direct personal exposure. Learn more: https://www.cummings.law/redomestication/