Delaware Foreign Qualification
If you open an office or hire employees in another state outside Delaware, your Delaware corporation or LLC should file a Certificate of Authority in the other state(s). This is known as foreign qualification which is the process of registering your Delaware company to do business in another state. Your company is considered “domestic” to Delaware and “foreign” to other states.
The foreign qualification process allows your Delaware company to be on record in other states. Here’s how the process works, plus how to foreign qualify your Delaware LLC or corporation.
Delaware Company Wanting to Do Business Outside of Delaware:
Most Delaware Corporations and Delaware LLCs do business outside of Delaware.
The state where you operate your business may require that you file a Certificate of Authority to transact business as a foreign (out-of-state) Corporation or LLC. This is especially true when the business has employees or owns real estate outside of Delaware.
States vary on their requirements to file a Certificate of Authority. Our office is licensed by Delaware to produce a Good Standing Certificate (which most states require) or Certified Copy (required by AL, AZ, IA, IL, MD, VA) of the Certificate of Incorporation for your business. The cost for this Domestication service is a processing fee of $50, plus the $50 state fee and any postage fees.
Foreign Company Wanting to Do Business in Delaware:
If you have a Corporation or LLC that is incorporated in a state other than Delaware and you plan to transact business in Delaware, you may be required to file a Certificate of Authority. We can prepare and file the Certificate of Authority for a $189 processing fee, $90 agent fee, and $200 LLC State fee (or $245 Corporation State fee). (Note: Delaware requires a Certificate of Good Standing from your State of Incorporation to process this filing).
When deciding where to form your company, consider that Delaware has advantages over your home state that may benefit you. Go