Foreign Qualification in Arizona

Arizona Foreign Qualification

Arizona offers plenty of opportunities to businesses especially those planning to expand their entity or trading. The state provides a pro-business environment and a wide variety of tax incentives that can help lower your operating costs. The state has a strong transportation and logistics infrastructure and availability of a skilled workforce can make conducting business in this state almost a breeze. If you want to move your existing business from another state to this state then foreign qualification in Arizona is the process that you should opt for.

What is Arizona foreign qualification?

If you have already registered a corporation or an LLC in any state in the USA but are thinking of expanding your operations in Arizona then it is possible through a specific process. This process is known as foreign qualification in Arizona. The advantage of this process is that you will be able to operate your company in multiple states without the need to register or incorporate a new company. As a result, you will be able to operate your business in your home state (state of incorporation or registration) as well as the new state (Arizona).

Example: You have formed an LLC in Connecticut by filing the Certificate of Organization. Now, Connecticut will be known as your home state or home jurisdiction for the purpose of foreign qualification. You want to move or expand your LLC to Arizona. One option will be to close your Connecticut LLC and start a new domestic LLC in Arizona. If you don’t want to close your existing business then you can apply for Arizona LLC foreign registration. This process will provide you with the authority to transact business in this state.

Doing business in Arizona

When a business corporation, limited-liability Company, or any other form of entity is thinking of operating in any state other than their home state then foreign qualification is required. When we talk of operation, it signifies transacting in the new state or doing business. Foreign qualification in Arizona is based on transacting or doing business. There is a list of activities that are not considered as doing business and hence, any other activity apart from these will require you to apply for foreign business registration. According to the Arizona Revised Statutes, the following activities do not constitute doing business in Arizona.

• Maintaining, defending, or settling any legal action, lawsuit, or other proceedings in the state
• Holding any meetings of your company officials like board of directors, members, and shareholders
• Maintaining a business bank account
• Selling your product or service through an independent contractor
• Maintaining an office or agency for the transfer or exchange of a corporation’s own securities
• Acquiring mortgages or creating indebtedness through borrowing funds in Arizona
• If you own any real or personal property
• If your business transaction is a part of interstate commerce

Arizona Foreign Qualification Process

Arizona foreign business registration is also known as foreign qualification. This is a process that will vary according to the type of entity you are planning to form. So, the registration of a name or the authority to transact a business in this state will be different for an LLC or a corporation. If you are planning to foreign qualify your LLC or corporation then let’s delve deeper into the specific requirements of this state.

Arizona Foreign Corporation registration

If you have already incorporated in another state but want to expand your business to Arizona then you will need to undergo foreign qualification. There is a process for Arizona foreign corporation registration and it is governed by the 2019 Arizona Revised Statutes, Title 10 – Corporations and Associations, Chapter 15 – Foreign Corporation. As a part of the process, you will need to obtain an authority to transact business in this state. Let’s look at the important requirements for Arizona foreign business registration.

1. Corporate name of foreign corporation

In order to register an Arizona foreign corporation, you will need to register a business name. According to AZ Rev Stat § 10-1506 (2019), the name of a foreign corporation should include words and abbreviations like “corporation,” “incorporated,” or “inc.,” or “corp.” among others. The name should not include any language in the corporate name, which implies that your foreign corporation has been organized for any purpose other than what is being permitted by section 10-301.

2. DBA or Trade Name

If the Arizona foreign entity search reveals that your corporation’s existing name or chosen name is not available then you will need to opt for a DBA (Doing Business As) name. This is also known as a trade name in this state. Once you choose a DBA name, you need to conduct a DBA availability search on the website of the AZ Secretary of State. If the chosen trade name is available then you need to submit the Trade Name Registration Application. There is a filing fee of $10.

3. Registered Agent

Whether you form a domestic corporation or register an Arizona foreign corporation, service of process is a procedure that is applicable to all types of entities. Service of process is handled by a reputed or state-listed registered agent. Hence, it is mandatory by law for foreign corporations to hire and maintain a registered agent in this state. According to AZ Rev Stat § 10-1510 (2019), your Arizona foreign business registration will be rejected if you have not hired a registered agent in this state. We at IncParadise are one of the top Arizona registered agents and have helped several domestic and foreign entities to incorporate in this state.

4. Application for Authority

There is a process towards registration of Arizona foreign corporations. You will be required to file proper documents also known as the application for authority to transact business or conduct affairs in Arizona. This is governed by AZ Rev Stat § 10-1503 (2019) and has to be filed with the Arizona Corporation Commission – Examination Section. There is a fee of $175 for regular processing.

Do you want to register a foreign Corporation in Arizona?

Arizona Foreign LLC registration

A limited-liability company is one of the most popular business entities that entrepreneurs opt for. If you have already formed an LLC and are thinking of opening a branch company or expanding your operations in Arizona then this is one of the top pro-business states in the nation. The process to expand your business is by opting for Arizona LLC foreign registration. This is also known as foreign qualification and will be governed by 2019 Arizona Revised Statutes, Title 29 – Partnership, Chapter 4 Arizona Limited Liability Company Act, Article 9 Foreign Limited Liability Companies. The Arizona foreign business registration process for an LLC may be different from that of a corporation.

1. Business Name

If you plan on moving your business through Arizona LLC foreign registration then the first step would be to register a business name. You can register your existing business name if it is available. You can conduct an Arizona foreign entity search also known as name availability search. It is important to ensure your name has words or abbreviations like “limited liability company”, “L.L.C.” or “LLC”. If the existing LLC name is available then you can register the said name using the Application to Register Foreign Limited Liability Company Name. You will need to submit this application with the Arizona Corporation Commission – Examination Section along with a non-refundable fee of $10.

2. DBA or Fictitious Name

If the Arizona foreign entity search reveals unavailability of your existing LLC name then you can opt for a Doing Business As (DBA) name also known as a fictitious name or an assumed name. You will need to conduct a name search for the fictitious name. If it is available then register the same by filing the Trade Name Registration Application with the office of the Secretary of State pursuant to AZ Rev Stat § 29-804 (2019). There is a fee of $25.

3. Registered Agent

One of the important aspects of Arizona LLC foreign registration is service of process. This is executed by a registered agent in the state. According to AZ Rev Stat § 29-811 (2019), a foreign LLC has to continuously maintain a registered agent in the state. A reliable registered agent service like IncParadise, will not only fulfill service of process requirements in Arizona but also assist with all forms of Arizona foreign business registration and annual maintenance requirements.

4. Foreign Registration Statement

Once you have registered a business name and hired a registered agent in the state, the next step would be to file the right paperwork for Arizona LLC foreign registration. You will be required to file the certificate of registration also known as Foreign Registration Statement pursuant to AZ Rev Stat § 29-803 (2019). You will need to submit a Certificate of Existence also known as a Certificate of Good Standing acquired from the home state along with the registration statement. This statement has to be submitted with the Arizona Corporation Commission – Examination Section, along with a fee of $150.

Want to start a foreign LLC in Arizona?

Need Any Assistance in Applying for Arizona Foreign Qualification?

If you are planning to move your company or expand your business to Arizona then the state promises good regulatory laws, pro-business environment, committed workforce, state grants, and small business incentive programs. You don’t have to necessarily close your existing business to move to this state. You can simply apply for Arizona foreign business registration. This will ensure you are able to operate your company in Arizona as well as your home state.