Utah Foreign Qualification
If your business began in another state and you know wish to start operations in Utah, it’s important that you go through the process of foreign qualification in order to maintain full compliance with the state’s regulations. There are several key things to learn here, and understanding them will help you get the best experience and start operating legally in Utah.
What is Foreign Qualification?
Foreign qualification is the process of registering a business that was formed elsewhere so that it may legally do business in a different state. For instance, if a business was formed in Ohio but now wishes to branch out and open a location in Utah, that business is considered ‘foreign’ to Ohio, and will have to foreign qualify. This process brings the business into compliance with the rules and laws set forth by Utah.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – A corporation or LLC will have to foreign qualify if it plans on having any kind of physical presence within Utah. This ranges from a warehouse to a retail store to just having some employees working in the state in any capacity.
When Should You Do It? – The sooner the better. Once you decide that Utah is the next location that your business will start operations in, you should begin the process of foreign qualification to avoid any potential delays. Generally, you will need to receive Utah foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Utah
- Buying a property there
- Have remote employees
- Accepts orders in Utah
- Owns a bank account in Utah
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 any of the Utah courts. You’ll also be held liable for fees and fines related to failure to qualify. Additionally, tax related penalties may be applied as well including back taxes and fines for nonpayment.
Steps To Obtain Foreign Qualification
There are several steps that you’ll need to take in order to complete the process of Utah foreign qualification. These include the following.
1. Obtain Certificates – Utah requires LLCs to file a Foreign Registration Statement (Foreign Limited Liability Company) and corporations to submit an Application for Authority to Conduct Affairs. These forms are available for download for free on the Utah Division of Corporations and Commercial Code website. If you are filing for a Corporation, you must submit a Certificate of Good Standing or Existence with the application. Neither certificate is required when you are filing for an LLC.
2. Collect And Submit Information – The form will request all basic business information you provided when creating your business initially.
LLC
- LLC name registered in the home state
- Name of the home state
- Principal office street and mailing addresses
- Name and address of the registered agent in Utah
- An alternate name if necessary
- Purpose of your LLC in Utah
- Names and addresses of LLC members and managers
- An authorized signature
Corporation
- Corporation name
- Name of home state
- Date of corporation formation
- Period of duration
- Principal office street and mailing addresses
- Name and address of the registered agent
- An alternate name if necessary
- Date that the corporation commenced or intends to commence business in Utah
- Names and addresses of officers and directors
- Business purpose in Utah
- An authorized signature
3. Appoint Registered Agent – Your registered agent is responsible for handling the basics of your foreign qualification and your compliance. The majority of businesses turn to a third party organization such as DoMyLLC to handle this process so they can avoid the hassle and stress involved.
4. File The Application – Once you complete the process, file an application with the Division of Corporations And Commercial Code. The filing fee is $70 for both Corporations and LLCs.
5. Ongoing Maintenance – Utah requires all businesses to file an annual report each year in order to maintain compliance. This is due by the anniversary date each year, and corporations and LLCs both pay $20 to do so.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporation is a process that will create a brand new business entity. Foreign qualification doesn’t create a new business or change the operational structure of an existing LLC or corporation. It simply allows your business to operate in a state other than its home state.
How DoMyLLC Can Assist With Streamlining The Process
Business leaders have a tremendous amount of responsibilities. We take care of the process of Utah foreign qualification so you don’t have to. We do everything so you can focus your attention on other aspects of running your business. Our team provides:
- Dedicated account manager
- Name availability check
- Full filing and registration for your business
- Unlimited and ongoing support
If your business is ready to expand and start operations in Utah, we’re ready to help. Contact us today to see more about what we can do for you.
Utah Foreign Qualification FAQs
The state requires that you submit a Foreign Registration Statement in order to complete the process.
You’ll be required to pay a $70 filing fee for both Corporations and LLCs.
Any business located outside of Utah that wishes to begin operations within the state.
No attorney is required, but businesses are always advised to seek counsel with their lawyer before taking major business steps.
The state will request all basic business information including things like:
- Your business name
- State it was formed in
- Registered agent information
- Names of members or managers
- Mailing and physical addresses of your business
You’ll have to file under a fictitious name. This has no impact on the name that your business operates under anywhere outside of Utah.
Utah Business Resources:
Utah Office of Secretary of State
Phone Number:
(801) 530-4849
Address:
Utah Department of Commerce
160 East 300 South, 2nd Floor Box 146705
Salt Lake City, UT 84114-6705