Pennsylvania Foreign Qualification
If you’re a business owner whose business exists in a state other than Pennsylvania, it is important that you go through the process of foreign qualification to register your business to operate there. The process is fairly straightforward but can take time and effort to complete.
What is Foreign Qualification?
Foreign qualification refers to the process of registering a business to operate in a state other than the one it was formed in – it is ‘foreign’ to that state, and to its laws. As such, foreign qualification allows you to start operations while staying fully compliant at all times.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – If your business intends to have any kind of physical presence in Pennsylvania, it must foreign qualify first. This includes everything from having a warehouse or store to just having a single sales representative working in the state.
When Should You Do It? – As soon as possible. Once you decide that you’ll be doing business in Pennsylvania, it’s time to start the process of foreign qualification to avoid any potential delays. Generally, you will need to receive Pennsylvania foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Pennsylvania
- Buying a property there
- Have remote employees
- Accepts orders in Pennsylvania
- Owns a bank account in Pennsylvania
What Happens If Your Entity Does Not Foreign Qualify?
Failure to foreign qualify will mean that a business can’t bring forth a lawsuit within the state at all. It also means that you may be held liable for fees and fines including tax related fees and penalties.
Steps To Obtain Foreign Qualification
In order for a business to receive Pennsylvania foreign qualification, there are several steps that must be taken. These steps include the following.
1. Obtain Certificates – Foreign qualification in Pennsylvania requires both an LLC and Corporation to file a Foreign Registration Statement. On this form you will choose what type of entity is registering. You can download this form from the Department of State website. Additionally, you should also include a Docketing Statement form. Corporations should also publish the intent to file or the actual filing of the form in two newspapers that have general circulation and one legal journal, if possible. You should submit the proofs of publication with the minutes of your corporation.
2. Collect And Submit Information – Once you have the form, complete all the fields on it. The form will request a variety of information.
LLC
- Business type
- Full LLC name registered in the home state
- An alternate name if necessary
- Name of the home state
- Principal office street and mailing addresses
- Address of proposed registered office in Pennsylvania
- Indication if it is a series LLC
- The effective date of the registration
- Name and address of the registered agent
- An authorized signature
Corporation
- Business type
- Full corporation name registered in the home state
- An alternate name if necessary
- Name of the home state
- Principal office street and mailing addresses
- Address of proposed registered office in Pennsylvania
- The effective date of the registration
- Name and address of the registered agent
- An authorized signature
3. Appoint Registered Agent – The registered agent is responsible for handling almost all aspects of your business’ foreign qualification and compliance. It can be time consuming, which is why most businesses will turn over the responsibility to a third party provider like DoMyLLC who takes over the job for them.
4. File The Application – Upon completion of your application, file it on paper or online along with the $250 filing fee.
5. Ongoing Maintenance – LLCs and corporations both must file a decennial report that is due every other year.
What Is the Difference Between Foreign Qualification And Incorporating?
When incorporating, the process creates a brand new business entity. Foreign qualification doesn’t create a new business and instead only provides existing companies with the ability to operate in another state.
How DoMyLLC Can Assist With Streamlining The Process
Running any business is difficult. When you’re dealing with so many other things, the last thing you want is an endless stream of paperwork due to your Pennsylvania foreign qualification. Our team takes over for you and handles the entire process. You just have to sign a few forms here and there while we do everything. We provide:
- Name availability checks
- Full filing and registration process
- Dedicated account manager
- Unlimited support when you need it
If you’re planning on doing business in Pennsylvania, we’re here to help. Contact us today to find out more about what we can do for your business.
Pennsylvania Foreign Qualification FAQs
Pennsylvania requires a Foreign Registration Statement needs to be filed when foreign qualifying.
There is a fee of $250.
Any business that exists in another state that wishes to operate in Pennsylvania in any capacity.
No attorney is needed. You may still wish to consult with your attorney beforehand to ensure that you are fully protected and compliant in your home state.
The form will request basic business information including things like:
- Name of business
- Business address
- State of formation
- Type of business
- Mailing address if different from physical
- Registered agent information
If your name is unavailable you’ll have to file under a fictitious name and operate under it in Pennsylvania. Bear in mind that this has no impact on your business’ name in any other location.
Pennsylvania Business Resources:
Pennsylvania Office of Secretary of State
Phone Number:
(717) 787-1057
Address:
Pennsylvania Secretary of State
Bureau of Corporations and Charitable
Organization 401 North Stre
Harrisburg, PA 17120