When forming an LLC, Delaware is often the most popular state people choose for incorporation. This is due to Delaware’s strong corporate law structure, which is considered by many to be Number One. What this means to the business owner is that Delaware is renowned for creating the biggest barrier between a business and the members behind the business. People from all over the world contact Harvard Business Services, Inc. to form Delaware companies, despite the fact they will not be operating their businesses in Delaware. When forming a Delaware LLC, your business is domestic to Delaware and foreign to every other state. When operating a Delaware LLC in Georgia, you register your company as a foreign entity.
What is a Foreign Qualification?
When operating a Delaware LLC in Georgia, people generally register a company as a foreign entity in Georgia. This process is called Foreign Qualification, and it is the manner in which Georgia grants the Delaware LLC permission to operate in Georgia. This process is often completed before any business is transacted, any bank accounts are opened, or any office space is obtained. Without Foreign Qualification, your Delaware LLC may not be in compliance to operate in Georgia, and thus may be subject to penalties. Georgia, like most states, has an application process and a state fee; however, it does not require a Certificate of Good Standing.
As a Delaware Registered Agent, Harvard Business Services, Inc. helps clients foreign qualify in their home states every day. Harvard Business Services, Inc. prepares the application, sends it to the managing member for signature and then files the signed application with the Georgia Secretary of State. The turnaround time is usually about 10 days. The document you receive in return from the state of Georgia is called a Certificate of Authority. Harvard Business Services, Inc. can also act as your Georgia Registered Agent for $99 per year, thus saving you the trouble and expense of maintaining two different Registered Agents, one for Georgia and one for Delaware.
The questions Harvard Business Services, Inc. will ask you in order to assist in registering your Delaware company in Georgia are:
Once your Delaware LLC is registered as a foreign entity in Georgia, you will be responsible for filing an annual report. This annual report is due before April 1 and can be filed any time after January 1.
Please keep in mind that a Delaware LLC registered to do business in Georgia is still responsible for maintaining a Delaware Registered Agent and paying the Delaware Franchise Tax in order to remain in good standing.
For more information, or for assistance with registering your Delaware LLC as a foreign entity in Georgia, please call 1-800-345-2677, Ext. 6130 or email email@example.com.
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