Support - Compliance 101: Do I have to register as a foreign entity in another state?

Since your C-Corp is currently registered in Delaware, your may need to register to do business in whatever other state your headquarters are in. In most small startups, this is the address of the founder.

This isn’t the only time you’ll need to do this, however. Once you add your first full-time employee who lives in another state, you may have to register to do business in that state as well. The same applies if your company adds an office or business location in another state.

A Foreign Agent Qualification (FAQ) allows you to legally do business in a state and puts you in compliance with local laws and regulations. It is also sometimes termed “registering as a foreign entity”. Sometimes, your bank may also require you to complete an FAQ just to set up a business bank account in that state.

As Capbase is not a tax or legal firm, we cannot help you determine whether or not you need to register as a foreign entity in a specific state, as the term “doing business” is not clearly defined in any statute. Each state will have its own guiding principles in order to help you determine if you have any business relationships (sales, employees, etc.) in these states and therefore if your company must qualify to do business there. You can find more information on these in your Capbase Dashboard > Compliance Calendar > Upcoming filings.

If you are unsure about this, you should consult an attorney to confirm you have chosen the correct path.

If you do determine that you must register, Capbase can assist you with this at $150 per state. We will file all paperwork and this includes a registered agent ($150/annually). Please note that you will also be responsible for the filing fees from the state (registration, need for a certificate of good standing, etc).

Please reach out to our support team through live chat or via email at support@capbase.com to request an invoice for the fees required by your state and to start the foreign entity registration process.

If you have any questions, feel free to reach out to our support team through live chat or via email at support@capbase.com.

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