Out of State Companies Must Register to do Business in New York
“Registering” a business or company means it may operate in additional states besides the state it was first started in. If your business started in Massachusetts, for example, that would be the only state the business would be considered “domestic” in. Once that business starts transacting outside of the state of Massachusetts, it will be considered a “foreign” (meaning here a non-New York) corporation in those other states, and it will be subject to that states rules and regulations.
Determining a Business Transaction
To determine if you do indeed need to register your business with the State of New York, first look at the criteria that needs to be met for a company in this matter. The following list is not complete, and different states will have different criteria :
- Keeps employees in the state
- Takes orders in the state
- Opens and operates a bank account in the state
- Keeps a physical existence in the state
Is Out of State Registration Necessary in New York?
It may sound easy just to operate a business without registering in a second state that you are doing business in. However, state laws require all companies doing business within their state to “foreign qualify” or register to do business with the State themselves.
Not following these laws may have worse consequences than you may think.
Should I Register with the State of New York or Incorporate a separate New York Company?
Yes, you have to. To get around registering your business, you can incorporate your business or form your LLC in New York.
Regardless, it is required and important to have a Registered Agent
A Registered Agent is required whether or not you foreign qualify your company or opt for incorporating.
For more information on forming a corporation or LLC for your business or for complete details on other helpful business legal services, please do not hesitate to CONTACT US.