Kentucky Foreign Qualification
Any business that finds real success may eventually decide to move into another location. If your business exists outside of Kentucky but you wish to start operating there in any capacity, you’ll have to take steps to register your foreign business so that it can legally operate in Kentucky.
What is Foreign Qualification?
In situations like this, ‘foreign’ doesn’t refer to out of the country – it refers to outside the state. If a business wishes to operate in Kentucky but is based in a different state, it’s considered a foreign company. That means that it must register for a foreign qualification in order to do any kind of business in Kentucky. The process involves filing several forms with the Kentucky government.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – Your corporation or LLC must foreign qualify if it plans on having any kind of business presence in Kentucky. This includes things like opening a warehouse, opening a store, or even just having representatives working in the state.
When Should You Do It? – Businesses should start the process of foreign qualification as soon as they finalize their decision to move into Kentucky. Failing to do so could lead to delays in the process. Generally, you will need Kentucky foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Kentucky
- Buying a property there
- Have remote employees
- Accepts orders in Kentucky
- Owns a bank account in Kentucky
What Happens If Your Entity Does Not Foreign Qualify?
You’ll face fines and penalties. In addition to paying for the filing fee, you will be liable for a $2 penalty for each day you transact business in Kentucky without being registered. You may also face fines and penalties related to taxes, and you will be unable to bring a lawsuit forth in any of the courts in Kentucky.
Steps To Obtain Foreign Qualification
There are several steps that a business must take in order to obtain Kentucky foreign qualification. These include the following.
1. Obtain Certificates – Filing requires that you turn in the Certificate of Authority (Foreign Business Entity). This form is available on the Kentucky Secretary of State website and is the same form for any type of registered business. You may also need to secure a Certificate of Existence from your home state or at least a statement certifying your business’ existence.
2. Collect And Submit Information – The form will request all basic business information about your company.
LLC
- Type of business entity
- LLC name registered in the home state
- LLC name you will use in Kentucky if the original name is unavailable
- Name of home state
- The original date of formation
- The period of duration
- The principal office mailing address
- The street address of the registered office in Kentucky
- Names and business addresses of business representatives (secretary, officers/directors, managers, trustees, or general partners)
- The Kentucky county where you will operate the business
- Size of the business
- Indicate whether 50% of the business is women-owned, vetarn-owned, or minority-owned
- An authorized signature
Corporation
- Type of business entity
- Corporation name registered in the home state
- Corporation name you will use in Kentucky if the original name is unavailable
- Name of home state
- The original date of formation
- The period of duration
- The principal office mailing address
- The street address of the registered office in Kentucky
- Names and business addresses of business representatives (secretary, officers/directors, managers, trustees, or general partners)
- The Kentucky county where you will operate the business
- Size of the business
- Indicate whether 50% of the business is women-owned, vetarn-owned, or minority-owned
- An authorized signature
3. Appoint Registered Agent – Registered agents are responsible for handling most of the work involving your foreign qualification. They receive documents and work to keep you compliant. Most businesses turn to a third party provider like DoMyLLC to serve as their registered agent in order to lower their own workload.
4. File The Application – Once you complete the forms, file them with the Secretary of State along with the filing fee of $90.
5. Ongoing Maintenance – Kentucky requires any business to file an annual report each year by June 15th. This can be done by mail or online and the fee is $15.
What Is the Difference Between Foreign Qualification And Incorporating?
Foreign qualification is a process that creates an entirely new business. Foreign qualification allows an existing business to legally operate in another state without changing its structure or creating a new entity.
How DoMyLLC Can Assist With Streamlining The Process
Businesses already have a tremendous amount of work that they have to do. We take the stress and burden of Kentucky foreign qualification off your shoulders. We’ll provide everything you need including:
- Dedicated account manager
- Name availability check
- Full filing and registration service
- Ongoing customer support
We do everything so you don’t have to, giving you back more time to focus on other aspects of running your business and alleviating some of the stress and hassle in your workday. Contact us today to get started.
Kentucky Foreign Qualification FAQs
What Paperwork Is Required?
The Certificate of Authority (Foreign Business Entity) is the primary document you’ll need. You will also need a statement of existence from your home state.
What Fees Are Needed?
The filing fee is $90.
Who Can File For Foreign Qualification?
Any business that operates outside of Kentucky that wishes to begin doing business in the state.
Do You Need An Attorney For Foreign Qualification?
No, an attorney isn’t needed. However, businesses should still consider talking to their lawyer before taking steps to expand their business into another state in order to ensure total legal protection.
What Information Is Needed For The Certificate Of Authority?
All basic business information will be requested including:
- Business name
- What type of business entity it is
- State of organization
- Address of business
- Names of managers or members
- Registered agent information
What If My Name Is Not Available?
You will have to choose a fictitious name and register under that. This won’t impact your business name in other states, however.
Kentucky Business Resources
Kentucky Office of Secretary of State
Phone:
502.564.3490
Address:
Kentucky Secretary of State
700 Capital Avenue Suite 152, State Capitol
Frankfort, KY 40601
If you’re interested in more info on foreign qualification, call 888-366-9552.