District of Columbia Foreign Qualification

Many business owners who want to see their company grow consider expanding their operations in another state or jurisdiction, but they sometimes think twice because of the complicated process. However, you will not have anything to worry about with the opportunity that foreign qualification presents.

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Foreign Qualification at 888-366-9552

What is Foreign Qualification?

When a business entity wants to conduct operations in a state or jurisdiction outside the one where it originated, one needs to undergo the foreign qualification process. In other words, the goal is to register your company so you can transact business legally.

The term foreign does not point to companies that operate outside of the United States. In this case, it refers to a state or jurisdiction that is not the same as the one where the owner formed the entity.

Why Does A Company Need Foreign Qualification?

Why You Need To Do It – An entity cannot start transacting business outside its place of origin without acquiring the permission of the jurisdiction where you want to branch out. Foreign qualifying will ensure that the public has access to the entity’s basic information. It is also a way to impose the required taxes properly.

When Should You Do It? – Start with the process as soon as you decide to expand your business to the District of Columbia (DC). Finishing the process will help you start doing business with ease. Generally, you will need Distric of Columbia foreign qualification if your company falls under any of the following criteria:

  • Has a physical presence in DC
  • Buying a property there
  • Have remote employees
  • Accepts orders in DC
  • Owns a bank account in DC

What Happens If Your Entity Does Not Foreign Qualify?

Failure to obtain District of Columbia foreign qualification could lead to fees, penalties, and other charges. It will also prohibit you from registering in the area until you pay for the total cost. Additionally, you cannot bring any lawsuit in DC. Think about the foreign qualification as a protection for your company while you conduct business within its jurisdiction.

Steps To Obtain Foreign Qualification

To foreign qualify, you will have to go through the process that DC has set.

1. Obtain Certificates – To register your business, file a Foreign Registration Statement or Form FN-1 with the Corporations Division of the District of Columbia Department of Consumer and Regulatory Affairs (DCRA). You can download the application form through the DCRA’s website. You can send this document online, by mail, or in person. Additionally, you will also have to secure a copy of your Certificate of Good Standing from your company’s home state.

2. Collect And Submit Information – Provide your business information as requested by the state.

LLC

  • LLC name
  • Entity type
  • Alternate business name, if applicable
  • Name of home state
  • Date of formation of the LLC
  • Date the LLC began or will begin doing business in the District of Columbia
  • Principal office address
  • Name and address of the registered agent
  • Purpose of proposed activity the LLC will transact in the District of Columbia
  • Name and address of at least one governor

Corporation

  • Business name
  • Entity type
  • Alternate business name, if applicable
  • Name of home state
  • Date of formation of the company
  • Date the company began or will begin doing business in the District of Columbia
  • Principal office address
  • Name and address of the registered agent
  • Purpose of proposed activity company will transact in the District of Columbia
  • Name and address of at least one governor

3. Appoint Registered Agent – You must appoint an individual or company to be your registered agent. The agent’s main function is to send and receive legal documents on behalf of the company. This person or company should have a physical street address in DC, keep regular business hours, be able to contact your company, and forward all documents on time. To simplify things, most businesses turn to a third party provider such as DoMyLLC to serve as their registered agent.

4. File The Application – After ensuring that all documents are ready, you can fill out and file the application form. Provide all necessary information and submit it along with the $220 filing fee.

5. Ongoing Maintenance – Your company’s responsibilities do not end once it can conduct business in DC legally. The company needs to remain compliant by submitting biennial reports with the Department of Regulatory Affairs. File the first report by April 1. After that, the company has to file every two years using the Two-Year Report for Domestic and Foreign Filing Entity (Form BRA-25) along with the $300 registration fee.

What Is The Difference Between Foreign Qualification And Incorporating?

If you already have a business and want to operate in another state or jurisdiction other than where you have formed your company, you will need a foreign qualification. Meanwhile, you will need to incorporate if you are in the process of creating a new business.

How DoMyLLC Can Assist With Streamlining The Process

As a business owner, you will be handling a lot of responsibilities. We are here to help lessen the things that you have to worry about. Leave the filing and registration process to us, and we will ensure that your company will be able to operate in DC legally. Our services include:

  • A dedicated account manager
  • Name availability check
  • Full registration for the qualification
  • Unlimited customer support

If you’re planning on branching out into the District of Columbia, our team can help. Contact us today to simplify the District of Columbia foreign qualification process in a big way.

District of Columbia Foreign Qualification FAQs

DC requires you to complete and submit the Foreign Registration Statement along with the state filing fee.

The filing fee is $220.

Business entities formed in another state that wants to expand operations in DC.

Hiring a lawyer is not required. However, you can consult one to understand the regulations and laws.

The certificate requires you to include all basic information about your business entity, including the name of the company, names of the owners, address, the purpose of the business, and the name and address of your registered agent. You will also need the Certificate of Good Standing from the home state.

If you find out that your company name is no longer available, you can use an alternate name for your business activities in DC as long as it follows the naming requirements.

District of Columbia Business Resources

District of Columbia Office of Secretary of State
Phone Number:
(202) 442-4400

Address:
District of Columbia Department of Consumer & Regulatory Affairs
1100 4th Street SW
Washington, DC 20024