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What does foreign qualification mean?Foreign qualification is the process of formally registering your corporation, nonprofit, or LLC in a state other than your formation state. It’s required whenever you begin doing business in a new state, unless you opt to form a new entity there (i.e., incorporate a new business).
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Can I file the foreign qualification forms myself?You can prepare and file the Certificate of Authority yourself, but most business owners find that keeping track of various state requirements and filing dates takes up a frustrating amount of their time. CT Corporation's experts can help you speed through the process—even if you didn’t form your business with us.
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Can I use my home state business license in another state? I have a rental property management business in and I am thinking of expanding into a new state?
Every state is different when it comes to regulating the rental property management industry. Some states require real estate broker or salesperson licenses while others have specialized licenses for rental property management. Most licenses are not transferable from state to state, so you would need to obtain a new license for each state that you operate in.
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Does my remote employee make me liable for a business license where they live?
Possibly. While many localities do not consider the presence of a remote employee enough of a nexus to make a business liable for a license, there are some exceptions. Is your employee an IT assistant or a work-from-home salesperson generating revenue for your business? Localities may have different rules depending on the work being done by the employee.
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What happens if my company fails to foreign qualify?If you don’t register your business, you may owe fines, interest, and back taxes. You can also lose the ability to sue in that state. Plus, it could mean your personal assets will no longer be protected from business liabilities within the foreign state.
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When do I need to foreign qualify my business?You must foreign qualify whenever you’re “doing business” in a state. Although we recommend the advice of an attorney, you’ll probably need to foreign qualify if you have either employees or a physical presence in the new state, or if you routinely accept orders or execute contracts there.
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If the state where my business is headquartered does not require any license, will I need licenses in other states where we are doing business?
Yes, this is possible. The laws governing licensing are generally state and local specific so businesses should not assume they are not required to have a license in one jurisdiction simply because their home state, city or county does not require a license.
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Trust CT Corporation to navigate compliance anywhere you do business.