New Jersey Foreign Qualification
Any business planning on operating in another state must take the time to ensure that they do so legally. Foreign qualification registration is the key to doing so, and understanding more about this basic process can help you stay fully compliant when you begin operating in New Jersey.
What is Foreign Qualification?
“Foreign” in this case doesn’t mean a business from another country. Instead, it refers to a business located in another state outside of New Jersey. Any business that wishes to have a physical presence of any kind in New Jersey must make sure that they foreign qualify in order to stay compliant. This allows businesses to avoid creating an entirely new business in another state.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – If your business plans on having any kind of physical presence in New Jersey, it will have to foreign qualify. This includes anything that involves having a property or an employee within the state.
When Should You Do It? – The sooner a corporation or LLC begins to foreign qualify, the better. This allows you to avoid any potential delays or problems that might arise and keep your plan moving forward. Generally, you will need to receive New Jersey foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in New Jersey
- Buying a property there
- Have remote employees
- Accepts orders in New Jersey
- Owns a bank account in New Jersey
What Happens If Your Entity Does Not Foreign Qualify?
If you fail to foreign qualify, you’ll be unable to bring forth a lawsuit in New Jersey. Your business will also be held potentially liable for a variety of fines and fees including back taxes, tax related penalties, and more.
Steps To Obtain Foreign Qualification
There are several different steps that must be taken in order to properly obtain New Jersey foreign qualification. These steps include the following.
1. Obtain Certificates – The process begins by filing a Business Registration Application. You can find this form on the Department of Treasury website. The state uses one form for all businesses. However, you will also have to obtain a Certificate of Good Standing or Existence from the state where you formed your business.
2. Collect And Submit Information – The form will request a variety of information. Complete all applicable information when filing.
LLC
- LLC name registered in the home state
- An alternate name if you cannot use the original
- Name of the home state
- Principal office street and mailing addresses
- Street and mailing addresses of the office in the home state, if any
- Registered agent number
- Federal Employer Identification Number (FEIN)
- North American Industry Classification System (NAICS) code
- Purpose of the business in New Jersey
- An authorized signature
Corporation
- Corporation name
- Name of the home state
- The original date of formation
- Purpose of the business in New Jersey
- FEIN
- NAICS code
3. Appoint Registered Agent – Every business must name a registered agent. They’re responsible for managing things related to the foreign qualification and compliance of your business. Most businesses use a third party provider like DoMyLLC to serve as their registered agent in order to simplify the process for themselves.
4. File The Application – Upon completion of the forms, you may file online or by mail. The filing fee is $125. If you must use a different name, however, you’ll have to file by paper and not online.
5. Ongoing Maintenance – New Jersey requires all businesses to maintain compliance by filing an annual report. The report is due each year by the last day of the month in which the business initially completed its foreign qualification. The filing fee is the same for corporations as well as LLCs – $75.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporation is a process that will create a brand new business. Foreign qualification, on the other hand, doesn’t change the structure of your business in the least or create a new company. It only provides an LLC or corporation with the ability to legally operate in another state – New Jersey, in this case.
How DoMyLLC Can Assist With Streamlining The Process
We know that your business takes a lot of time and energy. That’s why we do everything related to foreign qualification for you. We’ll handle the whole process so you can focus on other aspects of your business. We provide:
- Dedicated account manager
- Name availability check
- Full filing and registration
- Ongoing customer support
If you’re ready to begin doing business, let us take care of the New Jersey foreign qualification for you to simplify the entire process.
New Jersey Foreign Qualification FAQs
You must file a Certificate of Good Standing from the state of your business’ creation as well as a Business Registration Application.
There is a filing fee of $125 to foreign qualify in New Jersey.
Any business that exists outside the state of New Jersey that wishes to begin doing operations within the state must foreign qualify.
You don’t need an attorney. However, you may need to talk to your lawyer to ensure that you take all of the appropriate steps for your foreign qualification.
The certificate of authority requests a variety of basic business information related to your business including things like:
- Name
- Date of creation
- Type of business
- State of creation
- Current mailing and physical addresses
- Registered agent information
You’ll have to file under a fictitious alternate name and operate that way. This won’t impact the name that you operate under when doing business in other states.
New Jersey Business Resources:
New Jersey Office of Secretary of State
Phone Number:
609-292-9292
Address:
New Jersey Division of Revenue
PO Box 308
Trenton, NJ 08625