What is Foreign Qualification?
Foreign qualification is a process that essentially registers a business to operate in a state other than the one it was formed in. Any business that was created outside of Washington that wishes to operate within its borders will have to foreign qualify in order to maintain full compliance.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – Businesses will be required to complete the process if they exist outside Washington and have any plans on having any kind of physical presence within the state. This includes everything from opening a new storefront to just having a couple of employees acting as representatives for your business in the state.
When Should You Do It? – As soon as you make the decision to expand into Washington. The sooner you begin the process, the better. This helps you avoid any kind of delays or issues related to Washington foreign qualification. Generally, you will need to foreign qualify if your company falls under any of the following criteria:
- Has a physical presence in Washington
- Buying a property there
- Have remote employees
- Accepts orders in Washington
- Owns a bank account in Washington
What Happens If Your Entity Does Not Foreign Qualify?
Failure to foreign qualify means that your business will be unable to bring forth any kind of lawsuit within the Washington courts. You’ll also be held liable for all fees, fines, and penalties imposed by the state. Additionally, your business will be held liable for tax related fees and penalties.
Steps To Obtain Foreign Qualification
There are several steps that must be taken to obtain Washington foreign qualification. These steps include the following.
1. Obtain Certificates – Washington requires both Corporations and LLCs to file a Foreign Registration Statement in order to register in the state. Additionally, you will also need to submit a Certificate of Existence from the company’s home state.
2. Collect And Submit Information – Provide your business information as requested by the state.
LLC
- LLC name
- Reservation name and number, if applicable
- Add Doing Business As (DBA) name, if the company name is not available in Washington
- Name of home state
- Entity type in home state
- Name and address of the registered agent
- Principal office address and mailing address
- Business phone number and email address (optional)
- Name of at least one governor
- Date of formation of the LLC
- Period of duration
- Nature of the business
- Date the company began doing business in Washington
- Effective date
- Authorized person name, title, and signature
Corporation
- Business name
- Reservation name and number, if applicable
- Add Doing Business As (DBA) name, if the company name is not available in Washington
- Name of home state
- Entity type in home state
- Name and address of the registered agent
- Principal office address and mailing address
- Business phone number and email address (optional)
- Name of at least one governor
- Date of formation
- Period of duration
- Nature of the business
- Date the company began doing business in Washington
- Effective date
- Authorized person name, title, and signature
3. Appoint Registered Agent – Your registered agent is responsible for handling all of the issues related to your business’ foreign qualification and its compliance. Most companies turn to third party providers like DoMyLLC to handle this so they can focus on other aspects of their business operations.
4. File The Application – Once you complete the forms, submit them to the Washington Secretary of State along with the filing fee. For both Corporations and LLCs, the fee is $180 when filed by mail and $200 when doing online filing.
5. Ongoing Maintenance – Washington requires that a company file an annual renewal with the Secretary of State every year. This is due on the last day of a business’ anniversary month and costs $71 for both corporations and LLCs.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporation is a process that creates a brand new business entity. Foreign qualification doesn’t impact a corporation or LLC’s business structure and doesn’t create a new company. Instead, it only provides a business with the legal ability to operate in a state other than its home state.
How DoMyLLC Can Assist With Streamlining The Process
Business leaders have a lot to worry about. We take care of the hard work involved in Washington foreign qualification so you can focus your attention solely on improving your business strategy. We provide:
- Name availability check
- Dedicated account manager
- Full filing and registration service
- Unlimited support
We do everything so you don’t have to. If you’re ready to branch out your business into Washington, contact us today to get started easily.
Washington Foreign Qualification FAQs
What Paperwork Is Required?
Washington requires a certificate of existence to be filed along with a Foreign Limited Liability Company Registration for LLCs or a Application for Certificate of Authority for corporations.
What Fees Are Needed?
The fee is $180 if filed by mail, $200 if filed online for both Corporations and LLCs.
Who Can File For Foreign Qualification?
Any business that is based in another state that wishes to begin operations in Washington can file for foreign qualification.
Do You Need An Attorney For Foreign Qualification?
No attorney is required for the process. However, it’s still a good idea to talk about your plans with your legal team to ensure full compliance.
What Information Is Needed For The Certificate Of Authority?
The forms will request basic business related information including things like:
- Business Name
- Date of formation
- State of formation
- Mailing and physical addresses
- Registered agent information
What If My Name Is Not Available?
You’ll have to file under a fictitious name and operate that way. This will have no impact on your name in any other state.
Washington Business Resources
Washington Office of Secretary of State
Phone:
360.725.0377
Address:
Washington Secretary of State
801 Capitol Way S PO Box 40234
Olympia, WA 98504-0234
If you’re interested in more info on foreign qualification, call 888-366-9552.