Many have expressed confusion about exactly what a foreign filing is. We would like to take a moment to discuss this subject. What is it and why would you do it?
Simply put if you want to conduct business in a state other than the state in which your business was formed, you need to file for foreign qualification with the new state where you would like to conduct business.
Common reasons why business owners perform a foreign filing versus creating a separate, new corporation:
- Tax benefits in the home state.
- Ability to file under the same Federal Identification Number.
- Insurance only needs to be obtained by the one entity.
- All employees are under the same umbrella company and able to work on any projects that the company has going.
This is just a bit of information on foreign filings. We are neither accountants nor attorneys and any specific questions as to what would be right for you should be directed to one of these professionals. Remember if you have a foreign filing, you still must stay on top of the filings for the home state or it will become a defunct company! Let us know if you have any questions.