Doing Business

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What does it mean to "Qualify to do business" in another state?

Metro

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  • JohnMerchant14th April, 2004

    You may be referring to the corporate requirement, in all states, that in order to "do business" in that state, your corp. must be registered there, and have appointed a "resident agent for service".

    This, by the way, is a huge & hotly debated & litigated legal topic, as to what is, or is not, DB...and there are hundreds of legal decisions on the subject from every state.

    Lots of business and commerce is done daily all over the country where one of the parties is an out-of-state corp or LLC and has not registered locally...all legally OK, as in lots of cases, the activity has been held to be NOT DB in that state...such as a wholesaler/salesman making a sale of his product to a retailer in that state.

    If your NV corp sets up an office in CA & hires an employee to man it, that would probably require such a CA registration, but anything less might not.

    Have a local lawyer look at any such business activity & provide you with legal backing for whatever you're doing.

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