Operating in Another State?
You’ll Need to File a Foreign Qualification to Stay Compliant
If your company is conducting business in a state other than the state of formation, you may need to file a foreign qualification. With our services, we make this process quick and easy!
Foreign Qualifications Made Easy
US ProCorp takes the stress out of applying for foreign qualification. We make the process simple and we’ll give you the tools you need to make sure your business runs smoothly in your new state(s). This allows you to stay focused on your business goals and the growth of your business.
Obtain a Certificate of Good Standing.
Registered Agents Available in all 50 States.
Avoid Penalties and Fines.
Employer and Sales Tax Registration Services.
How Do I Know if I Need Foreign Qualification?
If your company is conducting business in a state other than the state of formation, the state where the business transactions are taking place may require you to qualify your C Corporation or Limited Liability Company (LLC) within the state where the business is being conducted by filing a Certificate of Authority (also referred to as a Statement & Designation by a Foreign Corporation) with that particular Secretary of State’s office.
Some of the benefits of foreign qualifying a Corporation or LLC include:
Allows formation outside the state of where the business is physically located.
Enables a company to conduct business in multiple states.
Permits a company to open a bank account in a state where it’s doing business.
How Do I Choose the State to File In?
Once you decide to form a legal entity, you need to choose a state to make your filing. Most people choose Delaware, Nevada or their home state.
Incorporating in Delaware and Nevada.
Delaware is often chosen, especially by larger companies, because it has the most developed and flexible corporate statutes in the country and is considered pro-business.
Nevada has also become popular because of its lack of state corporate income tax, franchise tax and personal income tax. It also has relatively low fees.
Incorporating in my home state.
If you have a small business and are going to be conducting a substantial amount of your business in your home state, it will likely be beneficial to incorporate in that state.
If you incorporate out-of-state, such as in Delaware or in Nevada, but do much of your business in your home state, you will have to make a filing to “qualify to do business” in the state if there is a substantial ongoing business or physical presence in that state. You will then be subject to the same fees, taxes, and regulations as if you had incorporated there in the first place, and you will have paid filing fees (and, perhaps franchise taxes) to more than one state.
For example, If you have a small business and are going to be conducting a substantial amount of your business in California, it will likely be beneficial to incorporate in the state of California. However, if you incorporate out-of-state, such as in Delaware or in Nevada, but do much of your business in California, you will have to make a filing to “qualify to do business” in the state of California if there is a substantial ongoing business or physical presence in the state of California. You will then be subject to the same fees, taxes and regulations as if you had incorporated in California in the first place, and you will have paid state filing fees (and, perhaps franchise taxes) not only in the state of California but also to the state of Delaware or Nevada as well.
Apply for a Foreign Qualification
If you are interested in foreign qualifying your C Corporation or Limited Liability Company, US ProCorp can help by saving you both time and money with service that is fast, reliable, and affordable in processing the documents required to foreign qualify your company in any state.
Business Filing Processing Times:
Standard: 2-4 weeks
Rush: 1-2 weeks (additional fees apply)
*Service fees shown above do not include Shipping & Handling; additional state fees may apply and will be quoted upon order confirmation. Prices subject to change without notice.