Conducting Business in Another State

All business entities who want to conduct their business in the state other than the state they were formed, must obtain authority to do so from the concerned state department. This process of obtaining a business authorization in an specific state is commonly referred to as “foreign entity qualification“.

How To File a Foreign Entity
A Foreign Entity (also called “Out-of-State Entity”) is an entity formed in a state other than the state (or another jurisdiction, such as foreign country) in which your company was originally formed.

As an example, if you have a Nevada registered corporation, and you want to expand your business into New York State (e.g. buy real estate in New York City, etc) then your corporation would have to file as a Foreign Entity within the state of New York. That’s also called “foreign qualification” or “applying for authority to conduct business” in New York.

Typically, if a company conducts only few isolated transactions in a different state, there is no need to register a Foreign Entity in that state.

If, on the other hand, a company plans to develop a more serious business operation in another state, or plan to acquire assets such as real estate, then it must obtain authority to do so from the concerned state department. This process is commonly referred to as “Foreign Entity Qualification” or “Registration of Foreign Corporation/LLC”.

If you are planning to develop business operations in the state other than the state in which you are currently doing business, then you must file for Foreign Entity with the new state (in which you want to conduct business). Foreign Entity status will help you to enjoy all benefits that a domestic corporation may have in that state.

Penalties
There can be penalties to transact business without getting a Certificate of Authority.

How Do I Register a Foreign Entity?
To register Foreign Entity you need to file an application with the concerned authorities and pay a fee. In most states, registration requires disclosure of the company name, state of incorporation/organization and the name and address of the registered agent in the state for which the application is being made. As we have agents in all 50 states, we can assist and effectuate this service.

Keeping Your Registered Name
You can form Foreign Entity with your original registered name, provided that this name is available in the state where you plan to register Foreign Entity. Otherwise, your company must adopt another name.

How Can We Help
We can help you get your Foreign Entity filed quickly and easily. Our services include: