What is Foreign Qualification?
Foreign qualification is nothing more than the process of registering a business in a state that it is not based in. For instance, a business that currently operates in Alabama but wants to open another location in Florida will need to foreign qualify in order to do so legally.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – Foreign qualification allows your business to stay compliant when moving into a new state. It’s required and will offer your business the ability to operate without worry or potential repercussions.
When Should You Do It? – As soon as your business decides to branch out into a new state, you should start the process. This will help you avoid potential delays or unexpected problems that may arise and postpone your plans. Generally, you will need Florida foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Florida
- Buying a property there
- Have remote employees
- Accepts orders in Florida
- Owns a bank account in Florida
What Happens If Your Entity Does Not Foreign Qualify?
Failure to foreign qualify can mean that your business faces numerous penalties including heavy fines and fees. Additionally, you won’t be able to bring forth any legal action within the state. You may also face tax penalties, back taxes, fees, and more due to your failure to foreign qualify.
Steps To Obtain Foreign Qualification
There are a few basic steps that must be taken in order to obtain foreign qualification for your LLC or corporation in Florida. These include the following.
1. Obtain Certificates – Florida requires that you file the Application by Foreign Limited Liability Company for Authorization to Transact Business In Florida with the Registration Section, Division of Corporations of the Florida Department of State.
For corporations, the form needed is the Application by Foreign Corporation for Authorization to Transact Business in Florida. You should submit this file to the New Filings Section, Division of Corporations of the Florida Department of State.
You can send these documents by mail, in person, or online. You must also submit a Certificate of Existence, which is also known as the Certificate of Good Standing, from your company’s home state. Florida also requires a cover letter, including the company name, address, and contact information.
2. Collect And Submit Information – The application requires that you submit several pieces of information.
LLC
- The exact name of the LLC name as registered in your company’s home state
- An alternate name if the original name is unavailable
- Name of the home state
- FEI number (if applicable)
- Date first transacted business, if prior to registration
- Principal office and mailing addresses
- Registered agent information
- Names, titles, and addresses of people who are authorized to use the LLC in Florida
Corporation
- The name of the Corporation as listed in its original jurisdiction
- An alternate name if the original name is unavailable
- Name of the home state
- FEI number (if applicable)
- The original date of formation
- Date of duration
- Date first transacted business in Florida, if prior to registration
- Principal office and mailing addresses
- Registered agent information
- List of officers and directors, their title, and their addresses
3. Appoint Registered Agent – You’ll have to include the name of the registered agent as well. They handle most of the back and forth with documents between businesses and the state. This is usually a third party entity such as DoMyLLC since choosing to use one simplifies the process for businesses.
4. File The Application – Once you have all of the appropriate information and fill out the application, you will then submit it along with the filing fee of $155. For corporations, the filing fee is $78.75.
5. Ongoing Maintenance – Florida businesses must file annual reports each year in order to remain compliant. These are filed along with a $150 fee for corporations and a fee of $138.75 for LLCs.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporation is a process that forms an entirely new business entity. Foreign qualification doesn’t create a new business in the state of registration. Instead, it merely allows an existing corporation or LLC to begin operating in a state other than its home state.
How DoMyLLC Can Assist With Streamlining The Process
We know that business leaders have a lot to think about. That’s why we work to make foreign qualification easy. We offer:
- Name availability check
- Dedicated account manager for each business we work with
- Ongoing, unlimited customer support
- Full registration and filing for foreign qualification
Our team does everything for you so you can focus on other aspects of leading your business without worrying or stressing about Florida foreign qualification. Contact us today to let us help you.
Florida Foreign Qualification FAQs
What Paperwork Is Required?
Florida requires a certificate of existence from your home state, a statement of acceptance by your registered agent, and an Application by a Foreign Limited Liability Company for Authorization to Transact Business in Florida if it is an LLC. If a corporation is registering, the Application by Foreign Corporation for Authorization to Transact Business in Florida will need to be filed.
What Fees Are Needed?
The basic filing fee cost is $155 for an LLC and $78.75 for corporations.
Who Can File For Foreign Qualification?
Any business located outside of Florida and wishing to do business within the state will need to file.
Do You Need An Attorney For Foreign Qualification?
You don’t need an attorney. You may wish to consult with your legal team to ensure you take the appropriate steps to stay fully compliant, however.
What Information Is Needed For The Certificate Of Authority?
The application will require that you provide basic information regarding your business including things like:
- Name
- Business address
- Home state and date of formation
- Names of owners and officers
- Business focus
- Registered agent information
What If My Name Is Not Available?
You will have to choose a fictitious name and register the business under that. This won’t impact the name you operate under in your home state.
Florida Business Resources
Florida Department of State
Phone:
850-245-6000
Address:
Florida Department of State
Clifton Building
2661 Executive Center Circle
Tallahassee, FL 32301
If you’re interested in more info on foreign qualification, call 888-366-9552.