Doing Business in Other States

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!