If you are doing business in another state, it’s important to know whether your business has to “qualify” to do business in those states. This requires an understanding of “doing business” for purposes of state foreign qualification requirements. But, there is no settled “definition” of doing business for qualification purposes.
Decisions about whether a company is “doing business” are made on a case-by-case basis, considering all the relevant facts. And, determining a company’s need to qualify as a foreign corporation in a state usually considers the cumulative effect of a corporation’s activities. This updated white paper by CT’s compliance experts discusses what is considered “doing business” and summarizes prior court decisions regarding selected types of activities. It provides a solid introduction to anyone who wants to better understand this complex and intricate area of corporate entity law.
- Interstate and Foreign Commerce vs. Intrastate Commerce
- Isolated Transactions and Activities
- Corporate Secondary Activities
- Holding Interests in Resident Businesses
- Contracting and Construction Activities
- Credit Activities
- Entertainment Activities
- Leasing Activities
- Manufacturing Activities
- Performing Services
- Property Ownership and Related Activities
- Sales Activities