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Delaware is known for its strong corporate veil, which puts up a metaphoric wall between your business assets and your personal assets. If a company ever has an issue with liability, most business owners would rather have incorporated their business in Delaware in order to be under the protection of Delaware’s business-friendly law structure.
When incorporating in Delaware, your business is domestic to Delaware and foreign to every other state. If your business will have a physical presence by operating, hiring employees, banking or even holding an asset in a state other than its state of incorporation, owners often foreign qualify the business to operate in that state as a foreign entity.
This process is called Foreign Qualification. If you would like your Delaware LLC or corporation to operate in the state of Wyoming, you will have to file for Foreign Qualification in order to be granted the authority to do business in Wyoming from the state.
The document that Wyoming issues to prove you are foreign qualified is called a Certificate of Authority. There are several steps you must complete in order to obtain a Certificate of Authority from the state of Wyoming so that you may operate your Delaware company there.
Wyoming, like many states, has a state fee, an application process and also requires a Certificate of Good Standing from Delaware. Please note that the Delaware Certificate of Good Standing must be less than 60 days old. Wyoming also requires that you have a Registered Agent in the state of Wyoming.
Once you have completed the Foreign Qualification process and are registered as a foreign entity in Wyoming, please keep in mind you will be responsible for the Wyoming annual fees as well as the Delaware compliance fees. Wyoming’s annual report will be due on the first day of your anniversary month of the registration.
For assistance with your Wyoming Foreign Qualification, Registered Agent Service or if you have any additional questions, please feel free to call us at 1-800-345-2677, Ext. 6130 or email us at firstname.lastname@example.org.
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.