Registering An LLC in Another State
Let's say that I have an LLC in Delaware but I live and work in North Carolina. Do I need to register my LLC in NC? If so, how do I do this and what does it cost?
In this audio snippet, you'll hear about:
- If doing biz in North Carolina, then you are required to register in North Carolina.
- It is called a Foreign qualification
- Called Application for a Foreign Entity in many states
- Filing fee is normally higher than what you'd pay for a filing – generally around $250
- This is one major reason why you might want to file in the same state you live and do business in
Audio Transcript
Travis:
Let's say that I have an LLC in Delaware, but I live and work in North
Carolina. Do I need to register my LLC in North Carolina? If so, how do
I do this and what does that cost?
Jake:
Well, if your LLC is doing business in North Carolina, then North
Carolina will require you to register that LLC to be able to do
business in North Carolina.
Travis:
Is that what is a called a foreign...
Jake:
A "Foreign Qualification."
Travis:
"Foreign Qualification."
Jake:
Yes. So essentially it's saying that the company in Delaware is still
good, but that I want to be authorized to do business in North
Carolina. So, you fill out an application for a Foreign Qualification.
It's called an "Application for a Foreign Entity" in many states. You
will just go ahead and fill that out, pay the filing fee and then you
will be able to do business in North Carolina.
Travis:
Do you know, off the top of your head, how much that filing fee generally costs?
Jake:
The filing fee for foreign qualification is generally higher than what
you would normally pay for a filing. It's probably around $250.
Travis:
Wow. Goodness.
Jake:
Which is one of the reasons why many people need to consider,
especially with a small business, if they really want to form in
Delaware and file it in another state, especially if there are not that
many advantages to you. You are going to pay those extra fees
associated with it.
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