How can you operate your Delaware LLC in the state (outside Delaware) in which you are physically doing business? The answer is a process called Foreign Qualification.
When you file for Foreign Qualification, states typically require either a Certificate of Good Standing (GS) or a Certified Copy of the Certificate of Formation (CC) from the state of Delaware.
Most but not all states require a Certificate of Good Standing (also known as a Certificate of Existence). This document comes directly from the Delaware Division of Corporations and declares that your LLC is in good standing with the state, meaning it is in compliance and your taxes are paid.
Some states only require a Certified Copy of your Certificate of Formation. A Certified Copy is an official document, issued by the Secretary of State, which certifies the authenticity of your LLC’s corporate documents.
The infographic below illustrates which states require a Certificate of Good Standing, which ask for a Certified Copy and which states do not require either document.
We understand that Foreign Qualification can be a confusing process for some entrepreneurs. Feel free to call our experienced business formation specialists with any questions you may have about foreign qualifying your Delaware LLC.
(Mobile users: tap the image to see the full size infographic.)
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There are 3 comments left for Foreign Qualification: Doing Business in Other Statesocean kings e-sports said: Thursday, March 4, 2021
I am really glad to glance at this weblog posts which contains plenty of valuable information, thanks for providing these kinds of data.HBS Staff replied: Sunday, March 7, 2021
You're very welcome. Thank you for reading our article.Tracy Mitchell Griggs said: Wednesday, March 13, 2019
This infographic is not displayed correctly on iOS - non mobile responsive design.HBS Staff replied: Wednesday, March 13, 2019
Thank you for letting us know, Tracy!Paul H. Spitz said: Thursday, March 9, 2017
Actually, Ohio does require a certificate of good standing.HBS Staff replied: Thursday, March 9, 2017
For corporations, perhaps, but not for LLCs (which is what the infographic refers to).