Foreign qualification allows you to move or conduct business in another state.
Expand your business operations by hiring employees, managing offices, or opening a bank account in another state.
Increase potential revenue streams by reaching untapped audiences across state borders.
Lower your tax burden by expanding into a state with business-friendly tax policies.
You must foreign qualify to legally transact in a different state without creating a separate legal entity.
Your work starts and ends with a phone call. Simply provide us with your business information, and we’ll file your foreign qualification with the state.
Don’t bother learning the intricacies of foreign qualification requirements by state. We'll complete your foreign qualification in under 10 minutes.
Trust us for an accurate and swift filing to expand to one or more states in no time.
Avoid any legal headaches, including appointing a new registered agent. We can represent your business in any state nationwide.
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Foreign qualification does not mean qualifying to do business outside of the United States of America. In this context, foreign qualification is registering to do business in another state.
When you started your business, you registered with either your home state or a different state of your choosing. If you want to conduct business in a state other than where you originally incorporated, you must be foreign-qualified. For example, if you have employees, assets, or generate significant revenue from another state, you must file the necessary paperwork to receive authorization to do business in that state.
You must file for foreign qualification to conduct business in another state. You may also need to foreign qualify if:
Your operations are primarily in a state other than the one where you originally formed
You have a physical presence in another state, like leased space or owned property
You have employees in another state
You do business, such as take orders or earn revenue, from another state
You have a bank account in another state
If you conduct business in another state without filing the necessary paperwork, the state may charge you a penalty and make you pay any past-due fees. You may also be unable to adequately pursue or defend a lawsuit in the states' court systems where you are operating without foreign qualifying.
An alternative to foreign qualification is incorporating your business or forming your limited liability company (LLC) in the other state(s) where you plan to do business. However, when you incorporate or form your LLC in multiple states, you create separate domestic entities in those states.
You can avoid forming new, distinct corporate entities in each state by foreign qualifying. This saves unnecessary costs and administrative headaches for your business.
The state fees for foreign qualification can range from $50 to $350. The filing fees and reporting requirements will depend on the state and business entity type. For example, a foreign corporation will pay $245 in Delaware and $100 in California.
A certificate of authority, also known as an application for authority, is the legal document allowing you to conduct business activities outside of your original state of formation. It is typically issued by the secretary of state.
A domestic LLC is a business that operates in the owner’s “home” state or original state of incorporation. A foreign LLC, or any foreign entity, is an organization conducting business out-of-state or in a state other than its original state of incorporation.
The state fees for foreign qualification can range from $50 to $350. The filing fees and reporting requirements will depend on the state and business entity type. For example, a foreign corporation will pay $245 in Delaware and $100 in California.
Curious as to what foreign qualification can do for your business? Learn more about this important step for your business in Swyft’s Resource Center.
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