What is a foreign qualification filing?

Foreign qualification is the process of filing the appropriate paperwork to register a foreign LLC or corporation to conduct business in another state. Register for a Certificate of Authority in the state(s) where you want to do business.

What is foreign qualification for an LLC?

Foreign qualification is the process of registering to do business in a state other than the one in which you incorporated or formed your business. Corporations and LLCs are considered domestic only in their state of incorporation (for corporations) or formation (for LLCs and other entities besides corporations).

Does Delaware tax foreign income?

A. Every domestic or foreign corporation doing business in Delaware, not specifically exempt under Section 1902(b), Title 30, Delaware Code, is required to file a corporate income tax return (Form 1100 or Form 1100EZ) and pay a tax of 8.7% on its federal taxable income allocated and apportioned to Delaware.

How much does foreign qualification cost?

To foreign qualify an LLC in California, you file an Application to Register a Foreign LLC with the Secretary of State. You’ll pay at least $90 in state fees (a $70 registration fee and the $20 Initial Statement of Information fee mentioned below).

What does foreign qualification mean for a Delaware company?

Essentially, the foreign qualification process allows a Delaware company to be governed under the Delaware Corporate Law structure but still operate locally and do business in another state.

Do you have to be a Delaware resident to form a Delaware company?

You do not have to live in, or even visit, the state of Delaware in order to form a Delaware company. Other than residents of restricted countries (Cuba, Iran, North Korea and Syria), anyone can form a Delaware company and operate lawful business activities from anywhere in the world.

What does foreign qualification mean for a LLC?

Foreign Qualification (also known as a Certificate of Authority or Certificate of Registration) is the process of registering your corporation or LLC to do lawful business in another state, in addition to the state in which it was incorporated.

Can a foreigner be a director of a Delaware LLC?

Yes, the state of Delaware permits foreigners to act as officers or directors of a Delaware corporation. Delaware also allows foreigners to act as members of a Delaware LLC. There is no age restriction for officers, directors, corporate shareholders or members of Delaware Limited Liability Companies.