Shanu Singh Guliani

As a Foreign Corporation…What Type of Paperwork Do I Need to Complete to Do Business in Another State?
November 13, 2007

Making the decision to incorporate is never easy, but as the business grows, choosing to incorporate becomes an essential step in protecting the company, its assets, and the owners. My parents made the decision to incorporate their business in1993 in Florida. I, on the other hand chose to conduct business in Charlotte, NC (under the same corporation); therefore my business is considered to be a foreign corporation. Before conducting business in the state of NC I had to determine what qualifications and/or registrations were required by the other state or states.

The paperwork: Every state requires some sort of registration or qualification for foreign corporations. Qualification requirements for foreign corporations vary from state to state, and are regulated by the state's Secretary of State. Being incorporated in FL I had to complete and acquire the following before being able to do business in the state of NC.

Consequences of not qualifying or registering:Penalties and other consequences will apply for failure to qualify and register to do business in another state. Possible consequences include:

• Monetary fines assessed against the corporation.
• Denial of the right to enforce contracts in the state courts.
• Personal liability of the corporation’s officers or agents for the acts of the corporation in the state.

Consult your attorney for specifics, as this list is not intended to be comprehensive and can vary from state to state.

Posted by Shanu Singh Guliani on November 13, 2007 | Comments (1)