If you already have an LLC and wish to conduct business in another state, you must incorporate a foreign LLC in that state.
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What exactly is a Foreign LLC?
When a limited liability company goes across state boundaries, it is deemed “foreign” by all states save the one where it was formed. It is essential to register as a “foreign LLC” in any new states where you do business. Failure to do so may result in the piercing of your corporate veil, financial fines, and the voiding of crucial legal transactions.
What constitutes “doing business” varies by state. Typically, an LLC is regarded to be in business in any state where it has any of the following:
A commercial bank account
An office, shop, warehouse, or other commercial establishment
Property ownership
A manufacturer’s or distributor’s representative
Employees who meet or transact business We suggest contacting a lawyer about special conditions or state laws for incorporating your international Limited Liability Company.
Foreign LLCs vs. Domestic LLCs
A domestic LLC is simply any LLC that operates inside the state in which it was formed. Foreign limited liability companies are normally subject to the same fees and taxes as domestic limited liability companies. As a result, we advise against registering your company in more states than necessary. While there is a lot of excitement about establishing your company in places like Delaware or Wyoming, doing so will just result in an additional set of maintenance expenses.
