Multi-State Entity Registration ~ Certificate of Authority / Foreign Qualification

Posted by Gennine Cooper
November 25, 2020

Has your business taken off and you are ready to expand into other states? Be sure to register as a foreign entity before beginning operations or you stand to get penalized. Tax and penalty assessments can range from the hundreds to thousands so it’s best to be proactive with your registrations. More importantly, registering sooner than later reduces personal liability exposure.

First, understand that ‘foreign’ does not mean overseas. ‘Foreign’ in this instance is a term used in the U.S. when an entity has filed its domestic registration in one state or country and then registers the same entity in one or more other states in order to transact business legally.

Not all states require foreign registration, it is based on if the entity will be transacting business in the other state or not. Will it have employees in the state? Will it have an office address in the state? Will entity business meetings be held in the state? – If you said yes to any of these questions, they are the easiest determination that you will be required to file.  If you are not sure, simply call the state’s Division of Revenue for guidance as to that state’s requirement. Each state is different therefore, if one says no, do not assume you do not have to register in others, most states now require foreign registration.

When you are ready to register your entity in other states we are here to take the stress off your shoulders and make the filing process seamless. We are familiar with most idiosyncrasies of the state forms nationwide so we will gather the pertinent entity details the other states typically require, complete the forms with the information provided, then send them to you for review and the appropriate required signature(s).

Almost all states require the entity to appoint a registered agent with a physical address in their state, we provide this service nationwide. Each state has unique filing fees, supporting document requirements, and processing times for registration. At your request, we will provide you an all-inclusive quote, with processing options for each state, so that you can proceed in a manner that suits your budget and needs

Note that foreign registration does not include entity registration with the taxation departments in those states! Such registrations must subsequently be set up by the entity’s CPA, accounting department, or authorized representative due to the nature of the questions these departments require to set up an account.

Please email orders@incserv.com for additional details or place an order via www.incserv.com.

Renée Kent, Senior Client Services Representative

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