Ready for your entity to operate in another state other than the one it was formed in? Before buying that office building or hiring someone to work in the new state, allow us to get you foreign qualified so you have the authority to do so. Usually companies who need a specific license in a state, outside of the one it was formed in, will also get qualified to operate.
If your company plans to transact business in a state or multiple states other than the one it was incorporated in, you will need to register your business in that state as a foreign corporation or LLC. The process by which this is done is called foreign qualification.
Foreign Qualification in Another State
For example, if your business is incorporated in Michigan, but you plan to open a satellite office in Ohio, you will have to obtain a foreign qualification for Ohio which usually comes in the form of a certificate of authority.
Many factors can go in to determining whether you transact business in another state, and those factors can also differ from state-to-state. Possible factors include:
- Do you have an office or physical presence in another state
- Do you hire W-2 employees
- Do you hold real estate assets in another state
- Do you accept orders in another state
- Do you have a bank account in another state
- Are you required to hold a specific license in the state
Do we really have to worry about foreign qualification?
The short answer is yes. Filing for foreign qualification if your company is transacting business in a different state is a legal requirement, not optional. The fallout from failure to do so could be severe, including:
- Fines and penalties
- Liability for back taxes
- Loss of access to that state’s court system
- This means that if you were sued in that particular state, you would be unable to defend the suit until you properly filed for foreign qualification.
What information do we need to file for foreign qualification?
The information required can differ from state-to-state, but usually includes:
- Company name
- Date and state of incorporation
- Name and address of a registered agent in the state of qualification
- Number of authorized shares and listing of different classifications of stock for corporations
With the help of DoMyLLC, incorporating in another state can be done in two easy steps:
- Place your order
- Verify your forms with a signature
Once you complete these steps, we’ll take care of the rest, including preparing paperwork, filing the documents of with the state, and everything in between, even paying the filing fees.
We’ll then send you copies for your records, including a hard copy via FedEx and an electronic copy to your email address.
At DoMyLLC, we offer:
- A customer satisfaction guarantee
- Price match guarantee
- Live customer support over the phone or online
- Customized service
- An experienced and expert team of individuals
Let us handle the process and details so you can focus on the important matters of running your business.
Hassle Free Process
Obtaining authority to conduct operations in another state can be started in two easy steps: placing your order and verifying your forms with a signature. After you have completed these steps, we take care of the details. We do everything from preparing the paperwork to filing the documents with the state. We even pay the filing fees. Once everything is filed, we send out your copies for your records. A physical copy will be delivered to your shipping address via FedEx and an electronic file will be sent to your email address.
Register for your certificate of authority if you are ready to conduct business operations across state lines. Get a quote or order your services now so that you don’t have to take on the entire process on your own.
Give us a call at 888-366-9552 if you have any questions–we are happy to help or