Colorado Foreign Qualification
If your business is based in another state but you wish to do business in Colorado, you will have to go through the process of foreign qualification in order to do so legally. The process can seem confusing, but taking a closer look can help you understand all of the basics associated with it.
What is Foreign Qualification?
Foreign qualification is the process of registering your LLC or corporation so that it may do business in Colorado. Any business formed in another state will have to complete foreign qualification in order to remain compliant and legally operate within the State of Colorado.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – Compliance is important, and if your business wishes to do any business in Colorado then it must file for foreign qualification in order to do so legally.
When Should You Do It? – As soon as possible. The longer a corporation or LLC waits, the more risk there is of a delay occurring in opening your business in Colorado. Generally, you will need Colorado foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Colorado
- Buying a property there
- Have remote employees
- Accepts orders in Colorado
- Owns a bank account in Colorado
What Happens If Your Entity Does Not Foreign Qualify?
Failing to foreign qualify can bring heavy fines, fees, and penalties to your business. Additionally, you will not be able to bring legal action into the courts in Colorado if you are not registered as a business entity there.
Steps To Obtain Foreign Qualification
There are several steps that you must take in order to register your business for Colorado foreign qualification. These include the following.
1. Obtain Certificates – Businesses that want to register for foreign qualifications should file a Statement of Foreign Authority with the Business Division of the Secretary of State in Colorado. You can file this form online. The website of the Secretary of State has uploaded a sample form that you may use to create your own. The same fee and form apply to all business entity types. Unlike most states, Colorado doesn’t require a Certificate of Good Standing from the home state.
2. Collect And Submit Information – There are some things that you should include in the Statement of Foreign Entity Authority.
LLC
- True Name
- Optional Assumed Name if needed
- Type of LLC
- Home Justification
- Principal office address
- Mailing address if different form principal address
- Registered agent information
- Effective Date
- Person causing the filing in CO
Corporation
- True Name
- Optional Assumed Name if needed
- Type of Corporation
- Home Justification
- Principal office address
- Mailing address if different form principal address
- Registered agent information
- Effective Date
- Person causing the filing in CO
3. Appoint Registered Agent – A business must name a registered agent when it files for foreign qualification. They will handle the process of receiving legal documents from Colorado and passing them on to the LLC or corporation they represent. To simplify things, most businesses elect to use a third party provider such as DoMyLLC to serve as their registered agent.
4. File The Application – With the form completed, you will submit your application along with the filing fee of $100.
5. Ongoing Maintenance – Colorado requires an annual report be filed from each LLC or corporation as well. This report must be filed within 90 days from the anniversary of the date the business originally qualified in Colorado.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporating is a step that forms an entirely new business entity. Foreign qualification doesn’t create a new company but allows an existing business to operate in a different state – Colorado in this case.
How DoMyLLC Can Assist With Streamlining The Process
Business leaders have a lot of things to juggle every day. Having to worry about whether or not you’re legally able to do business in Colorado shouldn’t be something you worry about. Our team handles the filing and registration process for you so your workload is simplified. We provide:
- Dedicated account managers
- Full registration for foreign qualification in Colorado
- Name availability check
- Unlimited customer support
Contact us today to let us handle the Colorado foreign qualification process so you can focus your attention on leading your business.
Colorado Foreign Qualification FAQs
What Paperwork Is Required?
Colorado requires that you file a Statement of Foreign Entity Authority online. There is no blank form, but the state offers a sample form that you may use.
What Fees Are Needed?
The filing fee to register for foreign qualification in Colorado is $100.
Who Can File For Foreign Qualification?
Any business that is located in another state but that wishes to do business in Colorado will be able to file for foreign qualification.
Do You Need An Attorney For Foreign Qualification?
An attorney is not required, but as with any business process, it is a good idea to consult with your lawyer to ensure that you get the right results and that you’re legally protected.
What Information Is Needed For The Certificate Of Authority?
You must include all applicable business information including things like:
- Name of business
- Business address
- Owner names
- Type and focus of business
- Information regarding your registered agent
Colorado Business Resources
Colorado Office of Secretary of State
Phone:
(303) 894-2200
Address:
Colorado Secretary of State
1700 Broadway, Ste 200
Denver, CO 80290
If you’re interested in more info on foreign qualification, call 888-366-9552.