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Foreign Qualification: Doing Business in Other States
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Foreign Qualification: Doing Business in Other States


By Veselin Ganev Monday, March 6, 2017

How can you operate your Delaware LLC in the state in which are physically doing business in? 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.

 

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There is 1 comment left for Foreign Qualification: Doing Business in Other States

Paul H. Spitz says: 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).

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