Washington Foreign Qualification
The state of Washington offers many advantages and opportunities to small businesses and medium enterprises. It is home to over 600,000 small businesses, this includes both domestic and foreign entities. If you are planning to expand to this state then simply opt for Washington LLC foreign registration or foreign business incorporation to leverage the state’s favorable business environment. You can become an important part of the vibrant industry from aerospace to information technology, life science, clean technology, and food manufacturing among others. A Washington foreign business entity registration ensures that you’re able to apply for state grant and loan programs as well as tax incentive programs.
What is a Washington foreign qualification?
If you’re already conducting business in any other state but want to expand your operations in Washington then one of the best options is to undergo a Washington foreign business entity registration. This process doesn’t require you to incorporate your company all over again. When you opt for a foreign qualification in Washington; you will be able to operate your company in your home state as well as the new state (Washington). The home state refers to the jurisdiction where the business was initially formed or incorporated.
The process for a Washington foreign corporation registration or LLC formation may be different from the foreign qualification processes in other states or even the home state. The regulations are governed by the Revised Code of Washington for foreign corporations and limited-liability companies. Let’s look at an example to understand this:
Example: You have formed a domestic LLC in Idaho by filing the Certificate of Organization. Idaho will be considered your home state. You need to now expand to Washington. One of the options is to close your Idaho LLC and start a new LLC in Washington. If you don’t want to close your Idaho LLC then you can apply for a Washington foreign business entity registration. The process of foreign qualification will provide you with the authority to transact business in Washington as well.
Once you have applied for a foreign qualification in Washington; you will need to obtain the necessary business licenses and permits to operate in the state. You will also be required to hire and maintain a Washington registered agent like IncParadise. We can help you with all your state business formalities including annual compliances.
Doing business in Washington
When a business corporation, a limited-liability company, or any other form of entity operates within any state other than their home state or the state of incorporation, then they are required to “foreign qualify”. The foreign qualification in Washington provides a company formed in another state, with the authority to conduct business in this state. The foreign qualification is applicable if a company is doing business in Washington.
Generally speaking, if a company owns a warehouse in Washington or has a retail store in the state, then it is considered to be “doing business” in this state. There are several activities that are not considered as doing business; therefore, Washington foreign business entity registration will not be required. They are:
- If a company is collecting debts
- When a lawsuit is filed against a company in this state
- Internal business activities like board meetings don’t qualify as doing business
- Opening or having a bank account in Washington
- Businesses that have agents, offices, and representatives in Washington
- Selling of services or goods through independent contractors
- Delivery and installation
- Participating in an isolated or one-time business transaction
- A company transacting business in interstate commerce