Are you planning to grow or expand your business in New York? You may be thinking about doing business in another state entirely. If this is the case, you will need to look into whether or not you need a foreign qualification. Here is a quick look at the kind of circumstances in which this will prove to be handy.
What is a foreign qualification for business?
Business formation and planning are areas that require a great deal of care. To do business in any other state but your own, you will have to register as a foreign corporation. This process of registration is known as a foreign qualification. If you register a company or LLC in your own state, this is known as a domestic corporation.
When will this qualification be required?
It’s a very good idea to keep the prospect of a foreign qualification in mind when you are forming your business plan. This will be crucial to have in hand if you plan on expanding your business to other states.
For example, this qualification will be needed if you plan on having a regular series of in-person meetings with clients in another state. It will also be handy if you plan to purchase any kind of property in that state. You’ll need a foreign qualification if you plan to bid on contracts in a foreign state.
You should also note that a foreign qualification is required if you plan to apply for a series of business licenses or permits in another state. It will also be needed if you will have employees working in that state, so be aware of the legal requirements for your company.