Foreign Qualifications: Foreign Qualify Your Business in Other States

Foreign Qualification / Foreign Qualify Your Corporation or LLC

Foreign Qualification

$149 (plus state fees and for Certificate of Good Standing or certified copy of articles of incorporation / organization from the entity's home state)


When you foreign qualify to do business in a state this means that you are taking the legal steps to notify a State other than the home State of Incorporation that you are there operating in that State and that you would like to maintain a legal entity status there.


Why is it important to Foreign Qualify your business?

When you form a legal business entity it is generally with the intention of separating yourself from the business of which you operate and/or have financial interest in. When you foreign qualify, you are asking a State for permission to conduct business within their borders, but more importantly you are requesting that that State recognize the legal business entity separate from the individuals who are operating and/or have financial interest in it.

When a business entity -- be it a Corporation, Limited Liability Company, Partnership or other entity type -- operates within a State that has not legally approved it to operate within their borders, then if for any reason legal matters should arise in that State, that State can make the decision to not recognize the legal entity and instead hold the operating person or persons along with the persons who hold financial interest personally liable for those legal proceedings as if it was a Sole Proprietorship.


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