Importance of Foreign Qualification for Expanding Businesses
Internet accessibility has allowed businesses and entrepreneurs to operate, prosper and thrive without having much capital to start up their business the old fashioned way. It has expanded a business’s outreach to make for a bigger customer pool and a larger audience. This means business expansion is bound to occur and is now more prevalent than ever. Business owners cherish the idea of continually growing their business, expanding it one step at a time. Some aim higher and want to expand their business across state lines, which is not only very zealous but equally achievable as well.
So, why do you need a Foreign Qualification?
Stepping into a foreign state with your business requires the prerequisite paperwork of course, and this is where filing a Foreign Qualification comes in. In case your company is operating in a state other than the state your business started in the first place, you need all your rights allowing you to conduct your business affairs there without any hindrance from the state law and, in order to do this, you must acquire a Certificate of Authority, also known as Foreign Qualification.
Every state has its own set of rules concerning the transaction of your business into their state and must be met with the official documentation for authenticity. You will need this Foreign Qualification in every state you expand your business operations to. It is not an intensive process. In fact, it is actually quite easy to acquire a Certificate of Authority for your business incorporation.
Certificate Authentication is more scalable than one would imagine and it can put the relevant identity establishment procedures in place to grant your business with increased security. The real security of certificate authentication relies on the process of identity establishment used by the certificate authentication itself.
Getting your Certificate of Authority involves the creation of foreign qualification paperwork and filing it with the state agency. It doesn’t matter if you’re a foreign limited liability company, foreign corporation, foreign partnership or a foreign nonprofit, incifile can help you expand your business beyond your state’s jurisdiction. It’s important to know that businesses and companies cannot legally operate outside its state of origin without a Certificate of Authority, and not getting one can even affect your business’s Certificate of Good Standing adversely too.
Let’s take a bird’s eye view of the Certificate of Authority process:
Like other state legal paperwork, the Certificate of Authority has its own steps that must be followed.
The first step is running the official name of the company against the databases of each state to check if there are any matches. Hopefully, there won’t be any other companies with the same name as yours but in case of a match, you will have to modify your company’s name.
The second step is appointing a registered agent for your business who will serve as your business representative in that state and a means of contact for the state department for all legal paperwork. After taking care of all that, you can move on to actually registering for the Foreign Qualification in the state which will only require a fixed fee and paperwork to be filled out.