GETTING STARTED IS SIMPLE AND EASY
Our three-step process is made to save your time and efforts.
Complete our Online Form
Fill our simple online form with all your business details. It can be filled in less than ten minutes. We retain the privacy and confidentiality of your business.
We File the Documentation
We would complete all the requisite paperwork that is required for a certificate of authority in the state or states where your company intends to do business.
Receive your Approved Documents
As soon your incorporation documents are approved by the Secretary of the State,you would receive your Foreign Qualification certificate via email and post.
When a corporation conducts its operations in a different state than the one it was incorporated in, it must be legally qualified as a foreign qualification. For instance, a corporation that was incorporated in Los Angeles, but chooses to conduct or expand its operation in California would be considered as conducting its operations in California.
While most states have a standard filing process for corporations who wish to file for foreign corporations, but in some states, this process is more tedious and extensive than others. However, it is a general requirement in these states for businesses to fill out a Foreign Corporation Certificate, Statement and Designation by Foreign Corporation.
Benefits Foreign Qualification
Business beyond borders:
Before businesses can start their operations in multiple states, they need to register their business in the state where establishment is sought. A foreign qualification allows a business to acquire a physical presence in the state other than their home state.
Avoid risk, penalties and fines
Failure to file for a foreign qualification can result in penalties and fines in addition to be held accountable for back taxes.
Ability to sue in the registered state
While filing for foreign qualification can be complicated and legal complexities, the ramifications of not filing for one cannot be overlooked either. Failure to file for a foreign qualification renders the organization incapable of bringing suit to the state where it is not registered.
Frequently Asked Questions
What is Foreign Qualification?
Foreign Qualification is the process to get registered in another state, different to the one your business is currently incorporated in. You need to register your company with that State formally. The process to register business with the other state is called ‘foreign qualification.’ This allows you to legally transact business in the foreign state.
What can happen if I don’t get a foreign qualification?
If you fail to register your company in another state without having foreign qualification, you may face:
- Back taxes for doing business without Certificate of Authority for a certain time-period.
- Interest and fines (beyond normal fees) for the time you were conducting your business in a state without having foreign qualification.
- Since you don’t qualify to conduct business in another state, you can’t sue anyone for any kind of claim.
What are the requirements to get a Foreign Qualification/Certificate of Authority?
The fundamental requirements to obtain a Foreign Qualification are:
- First, your business must obtain a Certificate of Good Standing from the state of your business incorporation. Consequently, it will verify the status of business formation.
- Correspondingly, you must file the foreign qualification documents and pay the respective fee as prescribed by the state law.
What documents do you require to foreign qualify?
To foreign qualify in other states, many states require you to provide you the following documentation:
- Formation documents of your business. (States ask for its copy)
- Certificate of Good Standing from the state of your business incorporation
Do you need to foreign qualify?
Different states in the US have separate criteria for transaction and maintenance of business. You will need a foreign qualification if:
- You have an existing bank account in the state.
- If your company is employing workers in the state.
- The Physical presence of your company in a particular state.
- If your company accepts orders from customers residing in the state.
What happens if my company name is not available with the State Agency?
Before you register your business name with the foreign state, you need to check its availability. The reason being, the state agency will not pass your application if the name you desire is already existent in its records. You need to choose a different name or file for DBA/Fictitious Business Name in such scenarios.
What documents do you receive when you file your Foreign Qualification?
The State Agency will send you a copy of the articles filed for Foreign Qualification typically by email.