Foreign Qualification in Ohio

Ohio Foreign Qualification

Every state offers distinct advantages, which is one of the drivers of foreign businesses moving or expanding to other states. When it comes to Ohio, the state provides plenty of reasons for you to apply for foreign qualifications in Ohio. You can benefit from overall lower taxes in this state. If you plan to incorporate a foreign entity, then there will be no state income tax. In fact, you will end up paying almost 5-10 percent less tax as compared to other states. Depending on the industry sector chosen, you can also find skilled STEM professionals and a talented workforce. They will help your company to achieve success eventually. Ohio foreign business registration means that you can also leverage the state business and transportation infrastructure. If this is not all, Ohio also offers numerous loan and grant programs as well as business incentive and tax credit programs.

What is Ohio’s foreign qualification?

Whether you are thinking of moving your existing company to Ohio or planning to expand operations, it is important to understand foreign qualifications in this state. The governing law for foreign entities in Ohio is the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships. According to state law, a foreign entity is any company that has been registered or incorporated in any other state. Such a company will have to undergo foreign qualification in Ohio in order to transact in this state. Let’s study this with an example:

Doing business in Ohio

If you are thinking of Ohio foreign corporation registration, then it is important to understand what doing business in Ohio refers to. Each state has its definitions and guidelines for transacting in the state. Some states consider having a new company branch as doing business, while others consider owning real estate.

• If your company is defending, maintaining, or settling any legal proceeding
• If you hold meetings of company partners in this state
• If your company maintains a single or multiple bank accounts in this state
• If you are selling your products or services through independent vendors or contractors
• If your company is foreclosing mortgages or collecting debts in Ohio
• If you are transacting business in interstate commerce

Ohio Foreign Qualification Process

If you have already registered an LLC, partnership, or a business corporation in another state but want to conduct business in Ohio then you will need to undergo foreign qualification in Ohio. It is important to note that all out-of-state businesses require an authority to conduct transactions in this state. If you operate your company without obtaining the required authority then your business will be considered to be breaking the Ohio Revised Code and can lead to potential penalties. Let us look at the process of Ohio foreign entity search and registration for LLCs and corporations.

Ohio Foreign Corporation Registration

If you are already operating a corporation in another state and want to explore opportunities in Ohio then you will need to apply for Ohio foreign corporation registration. This process is known as foreign qualification. It will be governed by the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships, Chapter 1703 – Foreign Corporations. You will have to obtain the authority necessary to transact business in this state. There are certain steps you need to follow, and they are:

1. Business Name

The first step towards Ohio foreign corporation registration is identifying a business name and registering it. The corporate name should comply with state laws and contain words like “corporation,” “incorporated,” or abbreviations like “Inc.,” “corp.,” and “co.” Once you have identified a name, it is important to conduct an Ohio foreign entity search, also known as a name availability search. This will ensure your chosen name is available for registration.

2. Registered Agent

Whether you are forming a new business or incorporating a foreign entity, your company needs to be compliant with certain state business laws. Ohio foreign business registration will be possible only if you continuously maintain a registered agent in the state for service of process. This is governed by OH Rev Code § 1703.19 (2022). We at IncParadise are one of the top Ohio registered agents and have helped several domestic and foreign entities incorporate into this state.

3. Foreign For-Profit Corporation Application for License

Once you have conducted an Ohio foreign entity search and registered your corporation’s name, the next step is to get the right authority. In most states, this is known as a certificate of authority, but in Ohio, it is known as the Application for License. This license is mandatory pursuant to OH Rev Code § 1703.03 (2022). You will not be able to transact business in this state without it.

Do you want to register a foreign Corporation in Ohio?

Ohio LLC registration

If you are already operating a limited liability company in another state then you will need to apply for an Ohio LLC foreign registration. This process will help you to expand your operations in this state. The foreign qualification is governed by the 2022 Ohio Revised Code, Title 17 – Corporations-Partnerships, Chapter 1706 – Ohio Revised Limited Liability Company Act, Section 1706.51 – Foreign Limited Liability Company Governing Law. The process for foreign qualification involves the following:

1. Business Name

A company cannot conduct its business without a proper name. Hence, it becomes important to register the name of your company if it’s an out-of-state entity. Registering the name will also ensure you are able to apply for Ohio LLC foreign registration. An Ohio foreign LLC name should contain words like “limited liability Company” or “limited company” or abbreviations like L.L.C or LLC. The chosen name should also be available, and this is possible by conducting an Ohio foreign entity search or business name search.

2. Registered Agent

One of the important aspects of any Ohio LLC foreign registration is the service of process. This is provided by a registered agent. The business laws have made it mandatory to hire and maintain a registered agent in the state pursuant to OH Rev Code § 1706.09 (2022). Registered agent services offered by IncParadise will not only help fulfill state requirements like service of process but also assist with other annual compliances. IncParadise is one of the top Ohio registered agents and has helped with several foreign business registrations in this state.

3. Registration of a Foreign Limited Liability Company

If you are planning to transact or conduct business operations in the state of Ohio, then you need to have proper authority to do so. If you transact business without proper Ohio foreign business registration, then there can be penalties. The process to register is by filing the Registration of a Foreign Limited Liability Company (Form-617) pursuant to OH Rev Code § 1706.511 (2022).

Want to form a foreign LLC in Ohio?

Need Any Assistance in Applying for Ohio Foreign Qualification?

Ohio offers a vibrant market, growing and diverse industries, a talented workforce, robust infrastructure, low taxes, and a low cost of living. The state provides support and resources to both domestic and foreign entities. As one of the leading registered agents in Ohio, IncParadise can assist you with the process of foreign qualification in Ohio for LLCs and corporations.