Filing a foreign qualification allows you to legally operate your business in another state other than the state of formation.
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Corporations or Limited Liability Companies ( LLC ) formed in one state can do business in another state. Before conducting operations across state lines, a business may be required to file for a foreign qualification, or obtain authority to do business in that state.
A corporation or LLC is considered to be domestic only in the state in which it was incorporated.
In all other states, a company is regarded as a foreign corporation or foreign LLC.
If your company expects to transact business outside the state in which your company was formed, you may be required to file for a Foreign Qualification.
For example: If your company incorporated in the state of Nevada, but has an office and employees in California (in essence, based in California), then you would generally have to file for foreign qualification within the state of California. In other words - you must apply for authority to conduct business in California.
We can prepare Foreign Qualification documents for your review and submission to the appropriate state agency in any state so that your corporation or LLC may operate as a foreign entity within that state.
MyCorporation can help you file a foreign qualification for your business online for $149Get Started
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 for the following reasons:
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 states that are attractive to businesses.
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 more quickly 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.
As stated by the Delaware Office of the Secretary of State, Delaware General Corporation Law is one of the most advanced and flexible corporation statutes in the nation. In addition, Delaware courts have over 200 years of legal precedent as makers of corporation law. Further, the state legislature seriously regards its role in keeping the corporation statute and other business laws current. Finally, the office of the Secretary of State operates much like a business rather than a government bureaucracy with its modern imaging system and customer-service oriented staff.
Delaware law requires every corporation to have and maintain a registered agent in the State of Delaware. We can provide you with Registered Agent Services should you desire to incorporate in Delaware.
The Division of Corporations in Delaware offers a variety of incorporation services including "2-hour", "Same Da"" and "24-hour" processing and filing of documents.
Franchise tax - All corporations incorporated in the State of Delaware are required to file an Annual Franchise Tax Report, and to pay a franchise tax. Taxes and annual reports are to be received no later than March 1 each year. The minimum tax is $30 with a maximum of $150,000.
Authorized Shares Method:
Delaware Corporation Annual Report - Annual reports are sent to the registered agents in December of each year. A $20.00 filing fee is required for the annual report. Annual reports or reprints may be requested through your registered agent.
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