When you first formed your entity, you probably formed in the state in which you will be doing business. Therefore, your corporation or LLC has a legal existence separate from your own. However, it exists only in the state in which you are formed. It does not exist in any other state. The United States is fundamentally comprised of 50 different jurisdictions.
Let's assume business is now thriving and you expand (say you want to open a boutique in a neighboring state, or a branch office). You must register to do business in the new state (also called qualification or filing for authority to do business). In order to do so, you must fill out certain forms and supply copies of documents such as your original formation documents from your home state or a Certificate of Good Standing (StartABusiness.com can obtain these documents for you). You will then have an existence in both states.
If you know your company will be in operating 4 or 5 states, it makes sense to pick the most "business friendly" environment as your primary state, and then register in the other states. In your taxes each year you can allocate your income proportionally to each of the states in which you do business.
StartABusiness.com can assist you in preparing your registration documents, process the registrations, and act as your registered agent in as many states as you require!
Stay in compliance… In addition to a registered agent, each state generally requires companies to file annual or biannual reports. If these reports are not filed, companies lose good standing, which makes contracts voidable and generally precludes doing business properly.
Once you are doing business in multiple states, make sure you stay in Good Standing with our simple, straightforward program, the Annual Report Monitoring Service. Manage both your registered agent service and Annual Reports in one place.
Benefits of the Annual Report Monitoring Service:
- Filing preparation and confirmation
- Every jurisdiction managed in one place
- Specialists who stay up to date with changes in every state (forms, fees etc.) and work with Secretaries of State on a daily basis
- You can focus on bigger tasks knowing that the details are being handled
How I am billed? You will be billed three months before due date of annual report, ensuring a prompt filing.
What are the fees? The fees are straightforward: per state, the state’s fee for annual report filing, your Registered Agent rate and our service fee of $125.
What are the consequences of filing late or not filing? Voiding of licenses or permits, nullification of contracts, loss of business name, fines, penalties, increased liability… far more expensive than a small yearly service fee!
To find out more, please email us: firstname.lastname@example.org.