What is “foreign qualification”?
Foreign qualification, or foreign registration, refers to state laws that require corporations initially registered in one state (for example, Delaware) to then also register in an additional state where the corporation operates.
Requirements for foreign qualification and laws regarding what counts as “operating” within a state vary from state to state, but most startups who incorporate in Delaware will likely need to consider foreign qualification (especially if the founders are not located in Delaware themselves). Examples of operating in another state may include the founders primarily operating the business in another state, hiring employees in a particular state, or transacting a substantial amount of business within a state.
Need additional help?
If you need a service provider to assist you in making a filing to foreign qualify in another state, our partner LegalInc can provide you with this service for an additional fee. Please contact Symbola support, and we will be happy to introduce you (or you may already be connected to LegalInc as your registered agent provider in Delaware. If you have questions about foreign qualification requirements that are specific to your business, you should consult an attorney.