Categories: Business Basics

Business Basics: What does it mean to qualify as a Foreign Corporation?

In this week’s Business Basics we’re going over what it means to qualify as a foreign corporation. Let’s say you form a corporation or LLC in one state, but you’ll be doing business in another state. This is pretty common for a lot of business owners. All it means is that you may be required to qualify for a foreign qualification. Filing a foreign qualification allows you to legally operate your business in another state other than the state of formation.

But first, what state should you incorporate in?

Laws and fees governing corporations can vary from state to state. While you are able to form a corporation in any state you choose, most of our customers choose to form their corporation in the state in which they are conducting business. This is typically the most simple and cost effective way to operate your business.

There are, however, special considerations when it comes to Delaware and Nevada.

There are certain circumstances that could make it beneficial to incorporate in a state other than your home state. If you intend to do business in several different states or if your home state has complex laws or high tax rates and filing fees, you may want to consider forming your business in another state. Delaware and Nevada are commonly recognized as attractive business states.

Delaware is recognized as having modern and flexible corporate laws, a business friendly government, and a customer service oriented staff that can process documents and requests much quicker than other states.

Nevada does not charge a state corporate income tax or a personal income tax and allows for a higher level of privacy for a business and its owner’s personal information.

Here’s what you have to do to foreign qualify today:

Fill out and submit the Foreign Qualification order form on our website.
You’ll find requests for standard contact, billing, and authorization information, plus specific requests regarding home state, foreign state, entity type, director and officer information.
We will then forward you all necessary documents for your signature.
From there, you have to forward the documents to the state.
Once filed with the state, a Certificate of Authority will be mailed to you for your records.

If you have any questions on foreign qualifying, or would like to start your business today, give us a call at 877 692 6772 or visit us at www.MyCorporation.com.

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.