Idaho Foreign Qualification
In order for a business located in a different state to do business in Idaho, it must complete the process of foreign qualification. The process allows you to remain fully compliant and branch out into this state. Understanding foreign qualification is important for businesses ready to move to the next phase of their existence.
What is Foreign Qualification?
Foreign qualification is the process of registering your business so that it may operate in Idaho. If your business exists in a different state, it is considered ‘foreign’. Foreign qualification lets you do business and have a physical presence in Idaho without falling into noncompliance.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – Any LLC or corporation must foreign qualify in order to legally do business in Idaho. It’s similar to registering to operate in your home state, and keeps you fully compliant.
When Should You Do It? – The sooner, the better. Postponing the process can potentially lead to delays in your business starting to operate in Idaho, something that may impact your overall business plan negatively. Generally, you will need Iadho foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Idaho
- Buying a property there
- Have remote employees
- Accepts orders in Idaho
- Owns a bank account in Idaho
What Happens If Your Entity Does Not Foreign Qualify?
If you do not foreign qualify it can bring numerous fees and penalties. You may face fines from the state, and won’t be able to bring legal action to the courts. Additionally, you could face back taxes and tax related fines and penalties.
Steps To Obtain Foreign Qualification
Several steps must be completed in order to obtain Idaho foreign qualification. These steps include the following.
1. Obtain Certificates – Idaho requires that you file a Foreign Registration Statement to foreign qualify. One form works for any type of business – LLC, corporation, etc. You can download the form from the SOS website. Additionally, you must obtain a certificate of existence or good standing from your home state.
2. Collect And Submit Information – You’ll have to provide basic business information on the application.
LLC
- LLC name registered in the home state
- An alternate name, if the original name is unavailable
- The type of entity
- The name of the home state
- Principal office and mailing addresses
- Registered agent information
- Name, capacity, and mailing address of at least one governor
- An authorized signature
Corporation
- Corporation name registered in the home state
- An alternate name, if the original name is unavailable
- The type of entity
- The name of the home state
- Principal office and mailing addresses
- Registered agent information
- Name, capacity, and mailing address of at least one governor
- An authorized signature
3. Appoint Registered Agent – Your registered agent is responsible for handling things like filing papers, receiving foreign qualification related documents, and more. Most businesses use a third party provider such as DoMyLLC to serve as their registered agent in order to streamline their workload.
4. File The Application – With the information completed, you’ll need to file the application. Filing costs $100 for typed statements and $120 if you fill out the form by hand.
5. Ongoing Maintenance – Idaho requires that all corporations and LLCs file an annual report each year. This is due by the end of the month they filed for initial registration in, and Idaho has no filing fee for their annual reports.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporation forms an entirely new business. Foreign qualification doesn’t create a new company but allows an existing business to operate in a different state – Idaho in this case.
How DoMyLLC Can Assist With Streamlining The Process
We take over the process of foreign qualification and give you time to focus on other matters. We’ll handle everything and leave you fully compliant and ready to do business in Idaho. Our team offers:
- Dedicated account managers
- Unlimited customer support
- Name availability checks
- Full registration and filing
We do it all so you don’t have to, removing stress and workload and letting you manage your business instead of the paperwork and hassle involved in Idaho foreign qualification. Contact us today to see what a difference we can make.
Idaho Foreign Qualification FAQs
You’ll need to file a Foreign Registration Statement as well as obtain a certificate of existence or a certificate of good standing from the state your business was formed in.
The basic filing fee is $100 for typed statements. If you complete the form with a pen, it will cost $120 to file.
Any business operating in a different state that wants to do business in Idaho can file.
A lawyer is not required to complete the foreign qualification process. However, you may still wish to consult with your legal team to ensure you take all of the correct steps for qualification.
The certificate will request all basic business information, including:
- Business name
- Business address
- Names of members or managers
- Date of formation
- And more
You’ll have to register under a fictitious name to do business in Idaho. This will not impact the name you currently operate under in other states.
Idaho Business Resources
Idaho Office of Secretary of State
Phone Number:
(208) 334-2301
Address:
Office of the Secretary of State
PO Box 83720
Boise, ID 83720-0080