Enterprise Consultants Group is a full-service tax accountant, tax preparers, and consultants group based in Los Angeles, California. We also process foreign qualification application.
What is it and what is its significance?
Foreign qualification is vital if you are planning to operate a business outside of the state you are incorporated in. In order to get foreign qualification you will need to file a Certificate of Authority or a Statement and Designation by a Foreign Corporation. You have to present it at the Secretary of State Office so you can register your company in another state.
What is great about hiring us is that we can handle all the necessary filing for you. Although you can always do it yourself, the overall process is complicated, especially if you are not sure about what to do. The reason for this is that there are other requirements that you need to submit before you are given the said certificate.
Filing for foreign qualification is your legal obligation. If you failed to register your company with other states, then it could result in fines and interest for those times that you were not foreign qualified. The penalties and interest are in addition to standard fees that you have to pay. You might also face liability for back taxes for those times that you are not foreign qualified.
To minimize various filing requirements and paying annual fees, it is highly recommended that you apply for a foreign qualification in as few states as possible. You can also minimize additional paperwork.
It Varies By State
Some states exempt companies from getting foreign qualification. For example, if you are operating a mail order business, then you are exempt. However, if you add a brick-and-mortar store in a foreign state, the said exemption may no longer valid. It is vital to consult a tax attorney to know what states that require you to register your business.
Storefront manufacturers and retailers with a physical presence need to secure foreign qualification certificate. As for the schedules and tax codes, each state varies. We can help you meet all requirements for the foreign qualification certificate to avoid future complications.
Always seek our advice before you launch your business in a foreign state. We can give you recommendations and advice on the advantages and disadvantages of getting a foreign qualification certificate. Call us today for initial consultation at 800-950-2237.