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The state of Delaware is known for providing the best protection to members of a Delaware LLC and directors of a Delaware corporation. Business owners from all over the world form Delaware LLCs and corporations for this reason.
When a Delaware company is formed, the business is domestic to Delaware and foreign to every other state. If you are operating in the state of West Virginia with a Delaware corporation or LLC, your business is foreign to West Virginia.
The process by which West Virginia gives your Delaware company permission to operate there is called Foreign Qualification. Each state’s requirements when it comes to Foreign Qualification are different.
If you do not file for Foreign Qualification in West Virginia, your business will not be operating in compliance, which means you may be putting your company at risk.
'To register as a foreign business entity in West Virginia, you will need to pay the West Virginia Secretary of State a fee as well as complete the West Virginia application for Certificate of Authority.
West Virginia also requires you to provide a Delaware Certificate of Good Standing. A Certificate of Good Standing is a document that Delaware uses to verify that you have maintained a Registered Agent in Delaware and are up to date with annual Delaware Franchise Tax.
We have a Foreign Qualification department to assist business owners with this necessary process. We will prepare the documents, obtain the Good Standing Certificate from Delaware, and email the documents to the client for signature.
A member or manager is required to sign the application for an LLC, and a director is required to sign the form for a corporation. We will file the application directly with the West Virginia Secretary of State.
On the application, West Virginia will ask for your company’s Registered Agent in West Virginia. The Registered Agent’s job is to receive any legal documents or service of process for your company and forward it to your company’s contact person.
We can take care of Registered Agent service in West Virginia for your company.
The typical turnaround time for Foreign Qualification approval is often five business days. You will then be sent your company’s Certificate of Authority.
If you have a questions about operating a Delaware LLC or corporation in West Virginia, please feel free to contact us at 1-800-345-2677, Ext. 6130.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.