Foreign Qualification

Register a company to transact business in another state or multiple states.

A corporation or LLC is considered to be domestic only in the state in which it was formed. Depending on the business's particular needs, you may expect to transact business outside of the state of incorporation or LLC formation. In all other states, your company will be regarded as a foreign corporation or LLC.

To qualify your company to transact business in another State, you must register as a foreign corporation or LLC in that state. Additionally, most states required a registered agent within each state of qualification. LegalFilings can prepare/file all of the paperwork necessary to qualify your business as a foreign corporation or LLC in any state.

Our Foreign Qualification Service Includes:

• Name availability check in the state of qualification
• Preparation of certificate of authority
• Obtaining a certificate of good standing
• Payment of initial state fee

Our service fee for a foreign qualification is $75 plus (state qualification and certificate of good standing fees. LegalFilings provides providing fast, reliable, and affordable processing of foreign qualification documents in any state.

What exactly is Foreign Qualification?

Foreign Qualification refers to the legal permission for a corporation or LLC to transact business in a particular state other than its home state. Keep in mind that an entity, whether maintaining an office or seeking clients in another state, can be recognized as an out-of-state or foreign entity and thus will need to obtain Foreign Qualification. Without doing so, the company could be subject to fines and penalties.

What constitutes doing business in another state?

Several factors are used to identify if a certain company is doing business in another state. Each state has its specific requirements listed in their respective business and professions code. Some factors include:

• Whether the business has a physical brick and mortar location in that state.
• Whether that company has employees in that state.
• Whether the company accepts orders from that state or ships goods from within that state.
• Whether that company has a bank account in that state.
• Whether a considerable portion of the company's revenue comes from that state?
• Whether the company obtained a business license in that state.
• Whether the business entity must have special licensing such as real estate, contractors, or mortgage license.
• Whether the business entity will hold any real property in that state, such as rental property, commercial property, and personal property.

What paperwork is required to file a Foreign Qualification?

Most states require a Certificate Authority to file for Foreign Qualification. Additionally, most states require a Certificate of Good Standing coming from the state of incorporation before granting a Certificate of Authority. The Certificate of Good Standing declares that the business entity has paid all taxes and has complied with all the necessary legal procedures imposed by the state of incorporation.

What are the consequences of failing to file a Foreign Qualification?

Without filing for a Foreign Qualification, the company may be subject to penalties and fines. Also, the company may also be held liable for the back taxes for the particular period that it has done business in that state without being foreign qualified. Another consequence of not filing for Foreign Qualification is that the company might lose access to the state's court system. If the business entity was sued from a state where you do not have a foreign qualification, it might not be able to use the state's court system to defend itself.

Registered Agent

All states require a registered agent who is a physical address where to accept service of process in the state where the qualification was filed. Read more about LegalFilings registered agent services.