What is Foreign Qualification?
Foreign qualification is nothing more than the process of registering a business that exists in one state so that it may operate in another. When a business is formed, it’s done so under the laws of the state it was formed in. Foreign qualification places your business under the compliance laws of the new state, allowing you to operate legally there.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – If an LLC or corporation plans on having any kind of physical presence in Wyoming – whether it’s a storefront, an office, or just an employee working as a representative – it will have to take the steps required to foreign qualify.
When Should You Do It? – Once a business finalizes its plan to start branching out into Wyoming, it will need to start the process. The sooner you begin, the better. Generally, you will need to receive Wyoming foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Wyoming
- Buying a property there
- Have remote employees
- Accepts orders in Wyoming
- Owns a bank account in Wyoming
What Happens If Your Entity Does Not Foreign Qualify?
Failure to qualify means that a business will be unable to bring forth a lawsuit in any of Wyoming’s courts. It also means that you’ll be held liable for all of the fees and taxes you would have paid, plus interest at 18%. You’ll also face another $5,000 penalty and other costs including back taxes.
Steps To Obtain Foreign Qualification
There are several steps that businesses must take in order to obtain their Wyoming foreign qualification.
1. Obtain Certificates – You’ll have to obtain an original certificate of existence or a certificate of good standing, which you can get from the home state of your business. Along with this, you must file an Application for a Certificate of Authority. This form has the same name for both Corporations and LLCs, but the form itself is different for each entity. Additionally, Wyoming also requires the submission of the Consent to Appointment by Registered Agent.
2. Collect And Submit Information – The forms will request all basic business information.
LLC
- LLC name registered in the home state
- Name of the home state
- The date you organized the LLC
- Duration of the LLC
- Mailing address
- Principal office street address
- Name and address of the registered agent in Wyoming
- The date you began or will begin doing business in Wyoming
- An authorized signature and related contact information
Corporation
- Name of the corporation
- Name of the home state
- The date of incorporation
- Duration of the corporation
- Mailing address
- Principal office street address
- Name and address of the registered agent in Wyoming
- Names and addresses of officers and directors
- The date you began or will start doing business in Wyoming
- An authorized signature and related contact information
3. Appoint Registered Agent – Your registered agent is responsible for the vast majority of your business’ foreign qualification and compliance paperwork. To streamline their daily workflow, most businesses let a third party organization like DoMyLLC handle this for them.
4. File The Application – Once you complete the forms, file them along with the $100 filing fee for both Corporations and LLCs.
5. Ongoing Maintenance – Businesses in Wyoming must file an annual report with the Secretary of State to maintain their compliance. The form is due on the first day of the company’s anniversary month each year and costs $50 for foreign corporations and LLCs.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporation creates a totally new business entity. Foreign qualification doesn’t create a new business and leaves the structure of an LLC or corporation unchanged. The process only provides the legal authority to operate in another state.
How DoMyLLC Can Assist With Streamlining The Process
We understand that businesses can struggle with time. Business leaders always have more work to do, which is why we go through the process of handling Wyoming foreign qualification for you. We provide:
- Dedicated account managers
- Name availability checks
- Ongoing support
- Full filing and registration for your business
If you’re ready to start operations in Wyoming, we can take care of everything for you so you can focus your attention elsewhere. Contact us today to find out more.
Wyoming Foreign Qualification FAQs
What Paperwork Is Required?
An original certificate of existence from your home state along with a signed consent form from your registered agent. You’ll also have to complete the Application for a Certificate of Authority.
What Fees Are Needed?
Wyoming has a flat filing fee of $100 for both Corporations and LLCs.
Who Can File For Foreign Qualification?
Any business operating outside of Wyoming that wishes to begin doing business in the state.
Do You Need An Attorney For Foreign Qualification?
No attorney is required for foreign qualification. You’ll still want to consider speaking to a lawyer to help you remain fully compliant and legally protected, however.
What Information Is Needed For The Certificate Of Authority?
The certificate of authority will require basic business information including things like:
- Business name
- Business address
- Date of formation
- Mailing address
- Names of members or managers
- Registered agent information
- Date you’ll begin operations in Wyoming
What If My Name Is Not Available?
You’ll need to file under a fictitious name and operate under it in the state. This will have no direct impact on the name of your business anywhere else, however.
Wyoming Business Resources
Wyoming Office of Secretary of State
Phone:
(334) 242-5324
Address:
Wyoming Secretary of State
Business Division 2020 Carey Avenue, Suite 700
Cheyenne, WY 82002
If you’re interested in more info on foreign qualification, call 888-366-9552.