What Is Foreign Qualification?
Foreign qualification is the process of registering your business in a state where it was not originally formed.
For example, if you formed an LLC in Delaware but do business in California, you need to register as a "foreign LLC" in California.
The word "foreign" does not mean international. It simply means your business comes from a different state.
When Do You Need It?
You typically need to register as a foreign entity if your business:
Note: Simply having customers in another state or selling online does not always require foreign qualification. The rules vary by state. When in doubt, consult a business attorney.
How to Register as a Foreign Entity
Get a Certificate of Good Standing
Most states require a Certificate of Good Standing from your home state. This proves your business is in compliance.
Appoint a registered agent in the new state
You need a registered agent with a physical address in every state where your business is registered.
File an Application for Authority
Submit a foreign qualification application (sometimes called a Certificate of Authority) to the new state's Secretary of State.
Pay the filing fee
Foreign qualification fees range from $25 to $750 depending on the state.
Comply with ongoing requirements
You will need to file annual reports and maintain a registered agent in the new state, just like in your home state.
Costs of Foreign Qualification
Operating in multiple states adds up quickly. Here is what to budget:
See our filing fees comparison page for state-specific costs.