Oregon Foreign Qualification
Oregon has one of the fastest growing economies in the nation, with plenty of opportunities for those businesses looking to branch out into another state. But if your business exists elsewhere and wishes to start operations within Oregon, you’ll need to go through the process of foreign qualification.
What is Foreign Qualification?
Foreign qualification is the process a business goes through in order to operate outside of its home state. “Foreign” refers to being from another state, not another country in this case. Businesses must foreign qualify to ensure that their business operates under and abides by all laws and compliance regulations within another state – Oregon in this case.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – Your business must foreign qualify if you plan on having any kind of physical presence in another state. This ranges from opening a storefront to just having a sales representative located in the state.
When Should You Do It? – The sooner, the better. Starting the process early on helps you avoid potential delays down the road that could stall your business strategy. Generally, you will need to receive Oregon foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Oregon
- Buying a property there
- Have remote employees
- Accepts orders in Oregon
- Owns a bank account in Oregon
What Happens If Your Entity Does Not Foreign Qualify?
Failure to foreign qualify means that your business can’t bring any lawsuits forth in the state courts. The business will also be held liable for all fees that should have been paid. Tax related fees or penalties may also be applied depending on the situation.
Steps To Obtain Foreign Qualification
In order to obtain Oregon foreign qualification, several steps must be taken. These include the following.
1. Obtain Certificates – The form that you will need to file is the Application for Authority to Transact Business. The form is called the same for both a Corporation and LLC but the two forms are different from one another. You can download these forms for free from the Oregon Secretary of State website. Aside from this form, you must also submit a Certificate of Existence. It is a certification that you will get from the state where you formed your company.
2. Collect And Submit Information – Complete all requested information fully to avoid complications.
LLC
- LLC name registered in the home state
- LLC’s registration number, if there is no Certificate of Existence
- The original date you organized the LLC
- Name of the home state
- Duration of the LLC
- Name and address of your registered agent in Oregon
- Principal office address
- Mailing address
- The management structure
- An authorized signature
Corporation
- Corporation name registered in the home state
- Corporation’s registration number, if there is no Certificate of Existence
- The original date you formed the corporation
- Name of the home state
- Duration of the corporation
- Name and address of your registered agent in Oregon
- Principal office address
- Mailing address
- Name and address of president and secretary
- Nature of the business you will conduct in Oregon
3. Appoint Registered Agent – Your registered agent is responsible for handling the majority of the activities related to foreign qualification and to your compliance. Most businesses will hand over this responsibility to a third party provider like DoMyLLC to simplify their daily routine.
4. File The Application – Upon completion of the forms, file the paper online or by mail. You’ll need to pay a $275 filing fee for both a corporation and an LLC.
5. Ongoing Maintenance – Annual report filing is required to keep a business legal in the state. For foreign LLCs and Corporations the filing fee is $275 and the forms will be due on the anniversary date of the business’ initial registration each year.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporation modifies the actual structural makeup of your business. Foreign qualification leaves the business completely unchanged other than allowing it to operate in another state.
How DoMyLLC Can Assist With Streamlining The Process
Managing a business isn’t easy, and foreign qualification can take up a lot of time. We handle the hard work for you. Our team does the entire process and leaves you free to focus on other issues instead of spending hours or days tied up in the Oregon foreign qualification process. We offer:
- Dedicated account managers
- Name availability checks
- Full registration and filing service
- Ongoing customer support
If you’re planning on starting business operations in Oregon, contact our team today to see how we can help simplify the process and keep you compliant.
Oregon Foreign Qualification FAQs
What Paperwork Is Required?
The Application for Authority to Transact Business must be completed in full.
What Fees Are Needed?
Oregon charges a filing fee of $275 filing fee for both a corporation and an LLC.
Who Can File For Foreign Qualification?
All businesses formed in another state that wish to operate within Oregon will need to go through the process of foreign qualification.
Do You Need An Attorney For Foreign Qualification?
No attorney is required to complete foreign qualification. However, speaking to legal counsel is always in the best interest of businesses before they do anything.
What Information Is Needed For The Certificate Of Authority?
The forms will request basic business information including things like:
- Name of your business
- Type of business
- Date of formation
- State it was organized in
- Current physical and mailing addresses
- Registered agent information
What If My Name Is Not Available?
Then you’ll have to file under a fictitious name. This fictitious name only applies to your business in Oregon and has no impact on the name you operate under elsewhere.
Oregon Business Resources
Oregon Office of Secretary of State
Phone:
(503) 986-2200
Address:
Public Service Building, Suite 151, 255
Capitol Street NE
Salem, OR 97310
If you’re interested in more info on foreign qualification, call 888-366-9552.