North Carolina Foreign Qualification

North Carolina has many business opportunities for companies of all sizes and types. But, it’s important that you take steps to foreign qualify in order to ensure that you can do business legally within the state. Understanding more about foreign qualification is important for any business leader looking to open a location in North Carolina.

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Foreign Qualification at 888-366-9552

What is Foreign Qualification?

Foreign qualification is the process of registering a business located in one state so it can do business in another. The ‘foreign’ refers to any business located in a different state, not country, and the process is fairly straightforward but can take time and effort.

Why Does A Company Need Foreign Qualification?

Why You Need To Do It – Foreign qualification is required if a business wishes to have any kind of physical presence within the state.

When Should You Do It? – It’s important to start the process as soon as you decide that you’ll be branching out into North Carolina. This way you ensure that you stay fully compliant at all times. Generally, you will need to receive North Carolina foreign qualification if your company falls under any of the following criteria:

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

What Happens If Your Entity Does Not Foreign Qualify?

Failure to qualify means that your business will be unable to bring forth any lawsuit within the state. You’ll also be held liable for fees and penalties including a civil penalty of up to $10 per day for a maximum of up to $1,000 per year. You may also face various tax penalties including back taxes and fees or fines.

Steps To Obtain Foreign Qualification

There are a few basic steps you’ll have to take in order to complete the process of North Carolina foreign qualification. These include the following.

1. Obtain Certificates – North Carolina requires that you file an Application for a Certificate of Authority For A Limited Liability Company or a Certificate of Authority for Foreign Corporation. You can download these forms for free from the Secretary of State website. Additionally, you will need to obtain a Certificate of Existence from the state where you formed your business.

2. Collect And Submit Information – The forms request basic information related to your business.

LLC

  • LLC name registered in the home state
  • An alternate name if the original is not available
  • Name of the home state
  • Principal office street address, mailing address, and phone number, if any
  • Name and street address of the registered agent in North Carolina
  • Names, titles, and business addresses of company officials
  • The effective date of the application
  • An authorized signature

Corporation

  • Corporation name registered in the home state
  • An alternate name if the original is not available
  • Name of the home state
  • The date of formation of the corporation
  • Period of duration
  • Principal office street address, mailing address, and phone number, if any
  • Name and address of the registered agent
  • Names, titles, and business addresses of the current officers
  • The effective date of the application
  • An authorized signature

3. Appoint Registered Agent – Every business must appoint a registered agent that will be responsible for handling the majority of the processes involved in foreign qualification and compliance including accepting all documents from the state. Most businesses utilize a third party provider like DoMyLLC for this to simplify their overall daily business operations.

4. File The Application – Once you complete the forms, file them with the Secretary of State along with the $250 filing fee for both an LLC and a Corporation.

5. Ongoing Maintenance – North Carolina requires all businesses to file an annual report each year in order to remain fully compliant. The forms are due by April 15th for LLCs and will have a $202 filing fee. For corporations, the cost is $20 and will be due by the 15th day of the 4th month after the end of a fiscal year – usually April 15th.

What Is the Difference Between Foreign Qualification And Incorporating?

Incorporation is a process that creates an entirely new business. Foreign qualification won’t create a new business or impact the structure of an existing one. It only allows a corporation or LLC to have a physical presence in a state other than its home state.

How DoMyLLC Can Assist With Streamlining The Process

We understand that businesses can become overwhelmed with all of the responsibilities they have on their shoulders. That’s why we do the hard work for you. Instead of spending hours or days with paperwork and confusing legalese, you focus on running your business while we do everything for you. We provide:

  •     Dedicated account managers
  •     Name availability check
  •     Full registration and filing services
  •     Ongoing dedicated customer support

If you’re planning on branching out, we’re here to help you with your North Carolina foreign qualification. Contact us today to learn more.

North Carolina Foreign Qualification FAQs

North Carolina requires that you file a Certificate of Existence from your home state along with a completed Application for a Certificate of Authority for Limited Liability Company or a Certificate of Authority for Corporation.

There is a $250 filing fee for both an LLC and Corporation.

All businesses that exist in a state outside of North Carolina that wish to begin doing business in the state.

No attorney is required but it is always in the best interests of a business to discuss their plans and processes with their legal teams.

Basic business information including things like:

  • Name of business
  • Business address
  • Type of business
  • Date that it plans on starting operations in North Carolina
  • Names of members or managers
  • Registered agent information

You will have to file under a fictitious name and do business under it. This only impacts North Carolina and will have no impact on your business name in any other state.

North Carolina Business Resources

North Carolina Office of Secretary of State
Phone Number:
(919) 814-5400

Address:
North Carolina Secretary of State
PO Box 29622
Raleigh, NC 27626-0622