What factors can determine if my business needs foreign qualification?

Asked a year ago

Hi, I am a consultant, and this means that sometimes I might have to do some business for clients in different states than the one that my LLC is currently registered in. I’m confused about what elements of a business make it eligible for a foreign qualification in a state where the business operates. Can someone please clarify? Thank you.

Brittany McDonald

Brittany McDonald

Friday, October 14, 2022

You must file for foreign qualification if you're regularly transacting business in that state. Each state is different, but generally, you would need to have some type of physical presence in the state (i.e., employees, offices, warehouses), a bank account, or regular - not occasional - contracts in the state.

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