What is a Foreign Business?
A ‘foreign business’ is a business entity that has been formed outside the state it is planning to register in. If you have already formed a business entity in California or Colorado and are thinking of registering your business entity in Nevada then it will be known as a foreign entity. Any business that has been formed in another country, state or jurisdiction will have to go through the process of foreign qualification to operate in Nevada. The process to register a foreign business is different for that of a domestic business.
What is a Foreign Qualification for a Business?
Foreign qualification is the process by which you can register your existing business with the office of secretary of state in Nevada or any other state. It enables a foreign business to legally pursue their business activities and opportunities across state borders. The process also ensures you are able to pursue business operations without the need to form or incorporate a new business entity in the desired state. This process is considered as the first step towards business expansion in a new state or in multiple states.
The most common query that businesses have is why they need to go through the process of foreign qualification. Every state has its own statutes that govern new business, domestic business, and foreign business formation.
For example: A foreign LLC in the state of Nevada is governed by NRS 86 and similarly, the incorporation of a foreign business will be governed by NRS Chapter 80. The legal definition for operating a business will vary from one state to another. Some of the common reasons why you may require foreign qualification include:
- If you are planning to expand your existing business in any other state other than the state of business formation
- If you are planning to offer services, sell products, or bid for a contract in any other state other than the state of formation
- If you have to apply for a professional business license in another state other than the state of formation
- If you are looking for a physical address for your business in any other state
You will be required to file a foreign qualification for your existing business with the office of Secretary of State. This process may require you to provide a variety of existing business information and this is a demanding process. You can opt for foreign qualification services offered by IncParadise as this will ensure you are able to register your foreign Corporation or LLC quickly and with ease. IncParadise provides this service in all 50 states including Nevada.