Can An LLC Conduct Business in a Different State?
What may be the consequences if an LLC, which is incorporated in state A, “conducts business” in state B, a foreign state. The foreign state generally will require the LLC to qualify and register as a foreign corporation. This process is called qualification. This qualification process requires that the foreign LLC comply with that state’s filing requirements. This may require the disclosure of the names and addresses of the members, the payment of that state’s filing fees (currently $800.00 in California ), the appointment of a registered agent in that state, and compliance with that state’s tax laws. What constitutes “doing business” is determined by the law of that state, and can vary from state to state. Some states have broad definitions of what constitutes doing business. However, Washington State law, for example, states that merely owning real or personal property does not constitute “transacting business” within the meaning of the statute. Although the State of California stat
