Products / Secondary States (Foreign Jurisdictions)

If a corporation wants to conduct business in a state other than the one in which it was formed, it needs to obtain "foreign qualification" status. A corporation or limited liability company is considered to be domestic only in the state in which it originally incorporated. For all other states, the organization is regarded as a foreign corporation or foreign LLC.

The foreign qualification document needs to be retrieved from the entity's foreign jurisdiction, as this will officially confirm that the entity's Certificate of Qualification is accurate. These documents are sometimes referred to as the "Certified Copies."

Some states expect to collect sales tax from foreign enterprises. For example, Delaware has no state sales tax, so it is an especially popular state for incorporation if the company in question sells products by phone, has a consulting service, or does business over the internet, mail, or travel. Many types of service companies can profit from being incorporated in Delaware.

The nature of foreign classification continues to evolve, as states debate how to impose sales tax on corporations selling products through the internet. Ecommerce retailers such as Amazon.com argue that they do not operate in these states so should not be obligated to pay its respective sales tax. State officials claim such sales do entail business operations so tax liability is warranted.

Because of the complex legal environment around foreign qualifications, Sabre Corporation Services offers comprehensive compliance and document maintenance services to help you obtain foreign qualification without the hassle.

There are a number of risks associated with not obtaining foreign qualification. If state officials discover a non-registered organization doing business within its borders, the company will be face a variety of fines and legal ramifications. Furthermore, the state will not recognize the legal status of such companies, thereby exposing individual owners and proprietors to legal and financial obligations.

To avoid this dilemma, allow Sabre to handle your various compliance and foreign qualification needs. Sabre Corporation Services can provide you with what you need to establish your corporation. We can handle all of your compliance, qualification, and incorporation needs, including foreign qualification, LLC filing, certificate of formation, registered agent services and application for federal employer identification numbers.