Conducting business in other states

When a company conducts business in a state other than the one it is incorporated at, it may have to apply for authority to do business in that other state. Whether it is mandatory or optional depends on the regulations of each particular state, which should be consulted before any commercial activities are taking place. As a general rule authorization to conduct business is required to obtain a state license, bring a law suite in the state courts, submit state taxes if it is owned either from the profits generated from that state or the ones companies are holding as trustees (e.g. employment, sales, use taxes, and alike). If it is a state requirement that all foreign companies (registered in a different state of the US) get authorization to conduct business in a state and a company does not apply for one, great penalties may be incurred, the amount of which again depends of the state of violation. Obtaining a qualification to conduct business is a simple straightforward process, which may be accomplished expeditiously. There is definitely no reason to risk business reputation and possible penalties. Business owners are advised to establish professional relationships with an experienced business attorney whom they can consult on a regular basis during the development of their enterprises.

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