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Can my Delaware Corporation or LLC do business in other states?

Yes, Delaware Corporations and LLCs can qualify to do business in all 50 states and in foreign countries. To qualify to do business in other states, you will have to apply to the state government. Usually, this involves applying to the Secretary of State for a Certificate of Qualification, although who you apply to and the name of the document differs between states.

Most states have similar requirements for qualification, such as having a name that is distinguishable from other entities in the state and providing formation and good standing documents from the state of incorporation. Incnow can provide these documents for Delaware companies.

Other states often have substantial penalties for doing business in their state without qualifying to do business there. This can be avoided by researching the state in question’s definition of business and making sure that your corporation or LLC qualifies if it needs to do so. Because these penalties can be higher than the cost of qualifying to do business, it is wise to qualify in states even if you are unsure that your activities qualify as “business.”

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