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.
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, we help people foreign qualify in their home states every day. We prepare 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.
The questions we 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 firstname.lastname@example.org.
Photo Credit: Shark96z
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.