What is Foreign Qualification? Definition, requirements, and how it applies to your business formation. Learn everything about foreign qualification for LLCs and corporations.
# Foreign Qualification
Foreign qualification is the process of registering your existing LLC or corporation to do business in a state other than where it was originally formed. The entity is called a 'foreign' entity in the new state, and registration is required when you have a physical presence, employees, or regular business activity there.
Failure to foreign-qualify when required can result in penalties, inability to enforce contracts in that state's courts, and back-payment of fees and taxes from the date business activity began.
Lovie handles foreign qualification filings in all 50 states, including the Certificate of Good Standing from your home state that most states require as part of the application.