Foreign Qualification FAQs

Foreign qualification is the process of formally registering your corporation, nonprofit, or LLC in a state other than your formation state. It’s required whenever you begin doing business in a new state, unless you opt to form a new entity there (i.e., incorporate a new business).

You can prepare and file the Certificate of Authority yourself, but most business owners find that keeping track of various state requirements and filing dates takes up a frustrating amount of their time. CT Corporation's experts can help you speed through the process—even if you didn’t form your business with us.

If you don’t register your business, you may owe fines, interest, and back taxes. You can also lose the ability to sue in that state. Plus, it could mean your personal assets will no longer be protected from business liabilities within the foreign state.

You must foreign qualify whenever you’re “doing business” in a state. Although we recommend the advice of an attorney, you’ll probably need to foreign qualify if you have either employees or a physical presence in the new state, or if you routinely accept orders or execute contracts there.