Most business owners start their businesses with the hope that they will expand into other cities, states, and maybe even countries. This business growth is excellent for the economy, excellent for the business owner (is anyone against success?), and great for customers who want options closer to where they are. But moving a business into other areas can mean increased documentation and preparation on the part of the business owner.
For those who are looking to take their business to another state, it may be necessary to file a Foreign Qualification in the state where you are looking to expand. This gives a business that is incorporated or organized in one state, the authority to operate in another state. A company is considered a domestic entity only in the state where it was formed, and then must obtain Foreign Qualification in other states where it does business. For example, Jorge decides to start a web-based company that sells video games. He forms a corporation in Nevada because of the tax benefits and beneficial corporate laws even though his operations are based out of California. Since he is operating his business out of California, but his business is incorporated in Nevada, Jorge will need to get a Foreign Qualification for the state of California.
There are also businesses that are looking to expand their operations to a foreign country. In order to do this, the corporation will need to obtain an Apostille for the country where they wish to conduct business. An Apostille allows another country to recognize your corporation’s charter for international banking and registration purposes. An Apostille can be used for other documents as well such as birth certificates, wills, and passports. For example, let’s say Jorge’s business is doing very well in the US and he is eager to start selling in the UK. For Jorge to start selling in the UK and to have his finances set up there, he gets an Apostille for his corporate charter and other documents so they will be recognized there.
Growth and expansion into other areas is the goal of most business owners. In order to make sure you can take your business to the next place, please contact MyCorporation today about getting a Foreign Qualification or Apostille for your business. Don’t forget to ask about our compliance product MyIncGuard that will help to keep you current and in good standing with the state.