A Corporation or LLC is considered to be domestic only in the State in which it was formed. Depending on the particular needs of the business, you may expect to transact business outside of the State of Incorporation or LLC Formation. In all other States, your company will be regarded as a foreign Corporation or LLC.
In order to qualify your company to transact business in another State, you must register as a foreign Corporation or LLC in that State. Additionally, most states required a registered agent within each state of qualification. Legal Filings can prepare/file all of the paperwork necessary to qualify your business as a foreign Corporation or LLC in any State.
Our service fee for a foreign qualification is $75 plus (state qualification and certificate of good standing fees. LegalFilings provides providing fast, reliable, and affordable in processing of the foreign qualification documents in any state.
Foreign Qualification refers to the legal permission for a corporation or LLC to transact business in a certain state other than its home state. Keep in mind that an entity, whether maintaining an office or seeking for clients in another state, may be recognized as an out-of-state or foreign entity thus will need to obtain Foreign Qualification. Without doing so, the company could be subject to fines and penalties.
Actually, there are a number of factors that are used in order to identify if a certain company is doing business in another state. Each state has their own specific requirements listed in their respective business and professions code. Some factors include:
To file for Foreign Qualification, most states require a Certificate Authority to be filed. Additionally, most states require a Certificate of Good Standing coming from the state of incorporation before granting a Certificate of Authority. The Certificate of Good Standing declares that the business entity has paid all taxes and has complied with all the necessary legal procedures that are imposed by the state of incorporation.
Without filing for a Foreign Qualification, the company may be subject to penalties and fines. In addition, the company may also be held liable for the back taxes for the certain period that it has done business in that state without being foreign qualified. Another consequence of not filing for Foreign Qualification is that the company might lose access to the court system of the state. If the business entity was sued from a state where you do not have foreign qualification, it may not be able to use the state’s court system to defend itself.
All states require that a registered agent which is a physical address where to accept service of process in the state where the qualification was filed. Read more about LegalFilings registered agent services.
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