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Section 5 |
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Qualifying
A "Foreign"
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| A corporation which conducts
a majority of its business in another state is required to qualify the
company to do business in that state as a "foreign" corporation.
State filing fees for qualifying a foreign corporation vary tremendously. Qualifying a corporation in another state is much like forming a new corporation and can easily be accomplished at any time. A registered agent can assist the corporation in completing the filing in any state. If it can be proven that a foreign corporation has been conducting business without qualifying in violation of state corporation laws, the company may be required to pay the filing fee plus a penalty or be forced to discontinue doing business in that state. There are definite drawbacks to not qualifying. A corporation cannot use courts in the state to sue or be sued. A stockholder, director or officer may be open to personal liability. The corporation's name would be available for anyone's use, and the Corporation Division would only acknowledge the parties who reserved, incorporated or qualified the corporation name. If two corporations existed at the same time and shared the same name, one corporation could demand and force the other to quit doing business. If one of the corporations was an unqualified foreign corporation, it could be requested to move out of the state for failing to abide by the corporation laws. The Secretary of State would look dimly at an outsider who infringes on the legal rights of those within the state. There are numerous problems an unqualified foreign corporation could encounter, and with them varying degrees of expense. CRA of America, Inc. can qualify your corporation to do business in any state. Just give us a call for further information and costs at 702-243-9150.
Published by: CRA
of America, Inc.™ Telephone
(702) 243-9150 e-mail: info@craofamerica.com |
