What happens if I fail to register my LLC for a foreign qualification?

Asked a year ago

I am a freelancer and I do some business in a few states outside of the registered state for my LLC. I only heard on social media that businesses need a foreign qualification to do business in a different state. What are the consequences of not registering your business in the states where you’re operating?

Bryant Ibarra

Tuesday, September 13, 2022

Each state has different consequences for not registering your LLC. In most states, you'll be unable to file lawsuits in the state or obtain financing, and you'll owe back taxes, fines, and penalties. The state may also impose fines and penalties on you as the owner. You could even lose your Certificate of Good Standing.

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