{"id":4814,"date":"2016-04-04T10:47:45","date_gmt":"2016-04-04T15:47:45","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/incorporation-and-legal-structures\/conducting-business-as-a-corporation-or-an-llc-out-of-state.html"},"modified":"2025-10-14T10:15:00","modified_gmt":"2025-10-14T15:15:00","slug":"conducting-business-as-a-corporation-or-an-llc-out-of-state","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/conducting-business-as-a-corporation-or-an-llc-out-of-state.html","title":{"rendered":"Conducting Out of State Business as a Corporation or LLC"},"content":{"rendered":"\n
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Conducting Out of State Business as a Corporation or LLC<\/h1>\n\n
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\n By Jade Yeban, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
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Editorial Note: We earn a commission from affiliate partner links on FindLaw. Commissions do not affect the editorial integrity of our legal content.<\/p>\n\n <\/div>\n \n

\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

A foreign <\/span>business<\/span> entity<\/span>, such as an LLC or corporation, is one that conducts business in a state other than its state of formation. To operate legally, these “foreign” companies must formally qualify to do business<\/span> in the new state. This process typically involves filing a certificate of authority<\/span> with the secretary of state<\/span> and appointing a registered agent<\/span>.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Starting a new business can be thrilling. When it comes to business structure, many entrepreneurs<\/span> choose a limited liability company<\/span><\/a> (LLC) or a corporation<\/a>. There are many reasons to do this, including liability protection and tax benefits<\/span>. But what happens when you want to conduct business<\/span> in a different state<\/span>?<\/p>\n

A company that engages in business in a state other than the one where it was formed may have to qualify to do business<\/span> in that state. An LLC or a corporation<\/a> is a \u201cdomestic LLC<\/span>\u201d or \u201cdomestic corporation\u201d in the state where it formed. A company can engage in business in a domestic state without having to undergo qualification.<\/p>\n

A “foreign” LLC<\/a> or corporation<\/a> may have to qualify to conduct business<\/span> in another state. The term foreign describes an out-of-state<\/span> business rather than a company that originates outside of the United States. This article will guide you through the process and considerations for operating your business entity<\/span> out of state<\/span>.<\/p>\n

Need help with business formation? Our trusted partner LegalZoom makes it easy\u2014packages start at $0 + state filing fees.<\/a><\/span><\/b><\/p>\n

Transacting Business<\/span> Out of State<\/span><\/h2>\n

If your business operates<\/span> in multiple states, you must understand the rules for each state. Whether it\u2019s an LLC<\/a>, corporation, or even a limited liability partnership (LLP), business owners<\/span> must comply with local laws. This often includes registering as a foreign entity<\/span> in that state. This usually involves filing a certificate of authority<\/span> and possibly paying a filing fee<\/span>. Using a registered agent<\/span> service<\/span> for service of process<\/span> in the state is also a common requirement.<\/p>\n

An out-of-state<\/span> LLC<\/a> or corporation conducting business<\/span> in another state (intrastate business) must qualify to do business<\/span> in that state. A company that has a physical presence<\/span> in a state or repeatedly engages in business transactions in that state is conducting business<\/span> within that state. Most states will consider the following transactions intrastate<\/a> business when they occur within a state\u2019s borders<\/span>:<\/p>\n