Company Formation

Foreign Qualification and Doing Business in Other States

If you want to conduct your business in states other than the one your company is incorporated in, you should consider applying for “Foreign Qualification.” To wish to register your business in a state in which your business is considered to be “alien”, you need to get certain documentation at the end of the registering process. With this registration, you will be able to protect your business according to the state that you run your business.

We listed a number of states below as examples, so you can have an affinity with the process.

California

If you have Delaware LLC operating in California, you are regarded as a foreign entity in California while you are conducting your business in Delaware locally. If your company physically operates, recruits workers to do banking transactions, or even is a company with a high income in California, you need to go through a process known as “Foreign Qualification.”

  • In order to go through this process, California requires an LLC application, a certified “Delaware Certificate of Organization” and a certified “Certificate of Good Standing”.
  • You will also be asked to hold a registered agent. The registered agent is an intermediary between you and the state. It also accepts legal documents and takes process service from the state on your behalf.
  • Your company will be responsible for some reporting obligations when it is registered to California. First reporting should be completed within 90 days after the date of application and biennial reports should be submitted until the last day of the month you registered in.
  • The application fee is $20, and it is the same for biennial reports. If you fail to fulfill this responsibility, California will charge you a penalty of $250. California is also famous for its minimum franchise tax of $800.

Maryland

If you want your Delaware business to operate in Maryland, it will be regarded as a foreign entity. Therefore, you need to obtain “Foreign Qualification” which is the process of getting a permit to operate in Maryland.

  • Maryland requires a Certificate of Good Standing in addition to the Foreign LLC Registration Form.
  • A registered agent must also be listed within the application form. Maryland delivers all legal documents to your registered agent. If you already have a physical address in Maryland, you can also be your registered agent.
  • You do not have to publish your application in the region your registered agent resides unless otherwise required by Maryland.
  • After you have registered your LLC with Maryland as a foreign entity, the state will require annual reports. The deadline for this report is the 15th of April. There is also a fee of $300 to be sent to the state. The annual report is similar to the tax return, and a lot of clients get professional assistance about this.

Foreign Qualification process takes eight weeks plus mailing time in Maryland. Many people choose the expedited service with an extra fee, which makes the process quicker.

If you work with us, we can prepare your application form, get a Certificate of Good Standing from Delaware for you, conduct your document process, and payments right on time.

Nevada

If you want to register your Delaware company in Nevada, you need to fill the application form for Nevada and pay the state fees. By doing so, you register your Delaware company as a foreign entity authorized to operate in Nevada.

  • According to the laws in Nevada, you must have a registered agent.
  • Members of the Delaware based business must sign the application. Their addresses must also be stated for public records.
  • After you register your company in Nevada, you must keep paying the annual compatibility fees in Delaware just like you pay them in Nevada. This situation is essential for the good standing of your business. These notifications usually sent to your registered agent, and your registered agent is expected to deliver them to you.
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