Happy February! With winter now in full swing, we will be talking about a way to get away from the cold with Foreign Qualifying! This month, we discuss the opportunities of Foreign Qualification into another state and what the requirements are for those states.
Q: What is foreign qualification?
A: A corporation or LLC transacting business in a state(s) outside of their state of incorporation is typically required to foreign qualify in those other states.
Q: What constitutes transacting business in another state and when do I need to foreign qualify?
A: As examples, your company is considered to be transacting business in an additional state if…
You have a physical presence in the state
You have employees in the state
You accept orders in the state
You have a bank account in the state
State rules vary and this isn’t a complete list. If you have any questions about whether you need to foreign qualify in a state, you can speak with an attorney.
