What is Foreign Qualification?
Foreign qualification is the act of registering a business formed in another state so that it may operate within Mississippi. This is required if you have any kind of physical presence within the state including a warehouse, a storefront, or even business representatives. It allows your business to legally do business in Mississippi.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – Businesses must foreign qualify in order to legally do business within Mississippi. Any physical presence in the state will require foreign qualification.
When Should You Do It? – It’s important to begin the process the moment that you decide to start operations in Mississippi. Otherwise you run the risk of facing unexpected delays that may impact your overall business strategy and plan. Generally, you will need to receive Mississippi foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Mississippi
- Buying a property there
- Have remote employees
- Accepts orders in Mississippi
- Owns a bank account in Mississippi
What Happens If Your Entity Does Not Foreign Qualify?
If you fail to foreign qualify it means that you’ll be unable to bring a lawsuit forth in Mississippi. You’ll also face potential tax fees and penalties as well as fines and fees from the state. Failing to foreign qualify leaves your business significantly noncompliant and it is vital that you register as soon as you can.
Steps To Obtain Foreign Qualification
Businesses must follow a few basic steps in order to obtain Mississippi foreign qualification to start doing business.. These steps include the following.
1. Obtain Certificates – First, you will need to get a Certificate of Good Standing or Existence from the home state of your company. Then, you will have to file a Certificate of Authority with the Mississippi Secretary of State. The form is available online. You can also fill out the form directly online.
2. Collect And Submit Information – The forms request basic information about the overall operation of your business.
- LLC name registered in the home state
- A different name for your Mississippi activities if the original name is unavailable
- Name of the home state
- Date when your LLC will start conducting business in Mississippi
- The principal office address
- Date of dissolution, if stated
- Corporation name
- A different name if the original name is unavailable
- Address of the corporation in Mississippi
- The nature of the business your company will conduct in Mississippi
- Date when your company will start doing business in Mississippi
- Names and addresses of all directors and officers
3. Appoint Registered Agent – Your registered agent is the entity responsible for managing the basics of foreign qualification in the state. They’ll receive documents from the state and will be the first point of contact for lawsuits brought against a company. Most businesses elect to use a third party provider like DoMyLLC for this so they can reduce the overall workload that is on their shoulders.
4. File The Application – Once you complete the paperwork, you’ll file it with the Secretary of State online along with a filing fee of $250.
5. Ongoing Maintenance – Mississippi requires all businesses to submit an annual report in order to maintain compliance. The deadline for filing is April 15th. Corporations pay $23.25 along with corporate taxes, while a foreign LLC will pay $250.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporation is a process that creates an entirely new business. Foreign qualification, however, is only something that allows a corporation or LLC to operate legally in another state. It won’t create a new business or change the existing one.
How DoMyLLC Can Assist With Streamlining The Process
Business owners have so much to worry about on a daily basis that the stress can overwhelm them. Mississippi foreign qualification is important as well, but can take a tremendous amount of time and energy. We do all of the hard work for you and simplify your daily business operations. We provide:
- Name availability checks
- Full registration and filing
- Dedicated account managers
- Unlimited customer support
If you’re ready to start operations in Mississippi, contact us today to simplify the process and eliminate the hard work from your shoulders.
Mississippi Foreign Qualification FAQs
A Certificate of Existence from your home state as well as an Application for Registration.
Mississippi charges a filing fee of $250.
Any business that operates outside of Mississippi and that wishes to begin doing business within the state will have to file for foreign qualification.
An attorney is not required. However, businesses should always consult with their legal teams before taking major action to ensure they’re fully compliant and legally protected.
The forms request all basic business information including things like:
- Name of business
- Address of business
- Date of formation
- Date you’ll start operations
- Name of members and managers
- Registered agent information
You will have to file a fictitious name and do business in Mississippi under that name. However, this has no impact on the name that you operate under in other locations.
Mississippi Business Resources
Mississippi Office of Secretary of State
Mississippi Secretary of State
125 South Congress Street
Jackson, MS 39201