Moving a small business is a complicated, but often necessary step in your company’s growth. Hiring a full-service office mover is generally the best way to ensure the move is properly coordinated and to reduce downtime, though rental trucks and moving containers may also be an option for smaller businesses. In this article, we’ll cover what you need to know so your small business move will go smoothly.
Key Takeaways
- Effective small business moving starts with a detailed relocation plan and assessing your assets to determine the best moving options and timeline.
- In addition to logistical prep work, small business owners should also consider legal aspects, such as updating licenses and registration, notifying tax agencies and regulatory bodies, and notifying employees and customers.
- The cost to move a small business can range from $1,500-$5,000 for a small office with one to five employees, to over $50,000 for a larger office with over 20 employees.
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Cost To Move a Small Business
| Type of Business | Est. Cost Range |
|---|---|
| Home-based | $300-$1,500 |
| Small office (1-5 employees) | $1,500-$5,000 |
| Mid-sized office (6-15 employees) | $5,000-$15,000+ |
| Larger office (20+ employees) | $15,000-$50,000+ |
| Retail/light industrial | $15,000-$100,000+ |
Factors That Affect Moving Costs
- Business size: The larger your business, the more expensive it will be to move. A larger facility with more employees will have exponentially more equipment and supplies than a smaller office.
- Type/size of equipment: Larger equipment and equipment that requires specialty handling will be more expensive to move than smaller, basic office equipment.
- Packing & crating/disassembly & reassembly requirements: Professional moving services such as packing, crating, and the disassembly and reassembly of furniture and equipment can make your move easier, but also much more expensive.
- After-hours moving requirements: Moving outside of business hours reduces direct disruption to your business, but may result in higher moving fees for making the moving company’s staff work odd hours.
- Missed productivity: Needing to close temporarily for the move can result in lost income from employees not being able to work and customers not being able to do business with you.
- Storage costs: Many businesses need temporary storage for inventory and equipment during the move, which contributes to total moving costs.
How To Move a Small Business: Step-By-Step Guide
There are a lot of pieces involved in moving a small business, but we’ve made it as simple and easy as possible by breaking things down into three main steps.
Step 1: Create a Relocation Plan
Small business owners should start by developing a detailed relocation plan that covers every aspect of the move. Your moving checklist should map out the timeline, budget, and target move date for your move.
A relocation plan that maps out when you should take care of each step of the move (from setting up a lease at a new facility to beginning packing) makes it easier to keep things on track. The relocation plan should cover both the standard moving logistics you’d encounter in a residential move, as well as business-specific activities related to legal obligations, managing employees, and communicating with customers.
Step 2: Assess Your Assets
Small business assets can vary significantly depending on the type of business involved. As part of your relocation plan, pay special attention to your equipment and inventory. Take note of all office furniture, inventory that is kept at your current location, and any equipment that is used for your business operations.
As you assess your assets, make note of anything that might require special handling, such as IT equipment or industry-specific machinery. Some equipment may even be subject to special regulations for transportation, and you’ll need to make sure you are aware of those requirements well in advance.
Step 3: Choose the Right Moving Strategy
By assessing your total equipment and inventory, you’ll have a better understanding of which moving strategy will work best for your business. Larger businesses, especially those with large or specialized equipment, will likely be best served by full-service office movers, who handle all of the logistics of the move.
Smaller, more budget-conscious businesses may be better served by DIY or DIY hybrid moves. With a DIY move, the business rents moving trucks and handles all packing/unpacking, loading/unloading, and transportation with its own staff. Alternatively, businesses could rent moving containers and have the moving container company take care of transportation. These solutions are better for companies with basic equipment and smaller office spaces.
Choosing the Right Small Business Mover
Business moves often require specialized expertise, which makes choosing the right commercial mover one of the most important parts of the entire process. Here’s how you can find the right small business mover.
What To Look for in a Business Mover
- Licensing and insurance: Legitimate commercial movers should have FMCSA registration and a USDOT number for interstate moves, and proper state licensing for local moves. They should have adequate insurance for business assets.
- Commercial experience: Look for movers with extensive commercial experience. Ideally, the moving company should have handled moves with your specific industry and have appropriate tools and equipment for your assets.
- Relevant certifications: Certifications like IOMI (International Office Moving Institute) can help indicate relevant expertise and trustworthiness for small business moves.
- Flexible hours: The ability to handle moves on weekends or after business hours can go a long way in reducing your company’s downtime.
- Reviews and references: Look for reviews on sites like Google, Yelp, or the BBB that specifically discuss small business moves to better assess a mover’s pros and cons. You can also ask the mover for referrals from past customers.
Red Flags To Watch Out for
- Low prices or vague estimates: Moving scammers may try to lure you in with low quotes or a vague phone estimate, only to charge a much higher price when they arrive on moving day.
- No physical address: Scam movers often don’t have a physical address listed — just a PO box. They may also have unprofessional email addresses and be hard to contact.
- Incomplete documents: Moving contracts may be vague or incomplete. Some scammers won’t provide any kind of contract at all.
- Demands for upfront payments: Some scammers will demand a very large deposit or even 100% payment upfront, then take your money without providing moving services.
- High-pressure sales: Fraudulent movers may try to pressure you into agreeing to a quote right away, without giving you time to assess your other options.
Preparing Your Business for Moving Day
Before Moving Day
- Create a relocation plan and timeline and inform employees.
- Assess assets, taking detailed inventory of all supplies and equipment.
- Hire appropriate moving services and schedule your moving date.
- Schedule new IT and service connections at the new facility. Plan the office layout.
- Update your business address, signage, and all applicable registrations.
- Notify clients, vendors, and partners.
- Have employees pack their own desks and take home personal items.
On Moving Day
- Set up a central point for addressing any questions or issues with the move.
- Do a final walkthrough of the vacant office.
- Oversee movers to ensure correct placement of items at the new facility.
- Set up IT and unpack essential equipment first.
- Inspect inventory and equipment for damage and file a claim, if necessary.
Important Legal Steps for Moving a Business
Relocating a business has several important legal steps to consider on top of the logistics of the move itself. The following are the three key areas most businesses should focus on as part of their moving process.
Update Registration & Licenses
Even when you are moving within the same state, you will need to update your business’s registration and licensing information with state and local agencies. License and registration requirements often vary from city to city — one city may only require a business license for certain types of businesses, while another requires a license for all businesses.
Because of this, you should carefully review state and local regulations for your new location. In some cases, you may only need to update the address listed on your business registration. In other cases, you may need to cancel your old license and apply for a new one. At the very least, you’ll need to update your address with the state, county, and city where you are currently registered.
Check with city, county, and state agencies to determine what business registration and licensing changes you’ll need to make.
Notify Tax Agencies & Regulatory Bodies
Managing taxes is essential for every small business. You’ll need to notify the IRS of your move, either by filing form 8822-B or noting the updated address when you file your business tax return. Similarly, you’ll need to update your information with your state’s Department of Revenue, which collects state income and sales tax documents.
Small businesses with employees will also need to update their address with the Social Security Administration, while businesses that are required to submit Beneficial Ownership Information (BOI) reports will also need to update their address to FinCEN.
Finally, any business that is in a regulated industry (such as healthcare) will need to notify their applicable state licensing or regulatory bodies. Otherwise, you run the risk of losing your certifications.
Review Lease Agreements & Contracts
As you prepare to move your business, review your current lease agreement for clauses that require advance notice for moving out, penalties for early termination, or restoration of the space to its original condition upon moving out. These and other clauses can directly impact your moving costs and timeline. Reviewing your lease agreement well in advance of your move will help you avoid breach of contract so you can save money and avoid headaches.
Similarly, it’s a good idea to review the lease agreement for your new location. If you have any concerns about operating covenants like required hours, common area maintenance fees, or subletting rules, you should address them before you sign the new lease.
Prepping Employees & Customers for the Move
- Share internal timeline with employees. Employees will feel empowered when they know the timeline and logistics for the move. Share this information as far in advance as possible and provide regular updates so employees feel in the loop.
- Define impacts. Clearly communicate the impacts of the move to both employees and customers. This could include temporary closures or service disruptions for customers, or a brief switch to remote work for employees.
- Update address across platforms. Update your address on your website, social media profiles, Google Business profile, invoices, and any other listings where you display your address.
- Address concerns. Hold Q&A sessions for employees and customers to address their questions and concerns. Give employees the option to reach out to managers or HR about personal concerns, and reach out directly to key clients to discuss their possible concerns.
- Celebrate the new space. A grand opening event or an office party for employees can help build excitement and relieve stress.
How To Minimize Downtime During a Business Move
- Use professional movers: Hiring professional office movers means your team can spend more time doing their regular jobs, rather than packing supplies and equipment.
- Pre-install IT: Make sure internet, phones, and other utilities are set up in your new facility before moving day so your team can get to work as soon as everything is moved in.
- Schedule the move for after hours: Try to schedule movers for after business hours so you don’t have to disrupt your normal hours of operation.
- Let employees work remotely: If possible, allowing employees to work remotely will let them get work done even when the office is unavailable.
- Move in phases: For larger offices, completing the move in phases (such as by department) can help keep operations going continuously.
FAQ
How far in advance should I plan a small business move?
You should start planning a small business move at least two to three months in advance, especially if you’re relocating an office with multiple employees or specialized equipment. Larger moves, lease transitions, or interstate relocations often benefit from four to six months of planning so you have enough time to coordinate movers, IT setup, legal updates, and employee communication without rushing.
Is moving a business tax-deductible?
Many costs associated with moving a business, such as hiring movers, renting trucks, or paying for packing and transportation, can usually be deducted as standard business expenses. However, capital improvements to the new location and personal moving costs typically aren’t deductible, so it’s important to consult a tax professional to understand how the move affects your specific situation.
Can I move inventory separately from office equipment?
Yes, and in many cases it’s a smart approach. Inventory and office equipment often have different handling, tracking, and storage needs, and moving them separately can reduce confusion and improve accountability. This strategy is especially useful for retail or light industrial businesses that need to keep closer tabs on stock during the transition.
How do business moves affect employee labor laws?
If your business is moving to a different city or state, you may need to update payroll, benefits, tax withholding, and compliance practices to align with local labor laws. This is especially important if the move results in changes to employee classifications, remote work arrangements, or layoffs. Reviewing these requirements early helps avoid compliance issues after the move.
How do I update my business address with the IRS?
The most common way to update your business address with the IRS is by filing Form 8822-B, which is used specifically for business address changes. You can also update your address when filing your next business tax return, but submitting the form sooner helps ensure you receive important correspondence without delays.