Certificate of Foreign Status
Asked by: Janie - 11 May, 2011
LLC formed in Delaware to purchase distressed properties in other states. Wants to open account in California and process invested funds and disburse payouts through account in Ca. Are they required to file for Certificate of Foreign Status?
LLC formed in Delaware to purchase distressed properties in other states. Wants to open account in California and process invested funds and disburse payouts through account in Ca. Are they required to file for Certificate of Foreign Status?
Answered by: Ray Albert - 21 May, 2011
Janie,
Generally speaking, opening a bank account generally does not constitute as "doing business". However, it could put you and your company on California's radar, and there very well could be subtle state laws that could put your business in jeopardy of fines and/or other penalties.
That being said, I would recommend speaking to an attorney familiar with California laws and regulations. You may also find some useful information from another one of our 'Incorporation Answers' replies to a similar question under the topic "Doing Business in Another State".
Hopefully you will find this information useful to answering your question.
Janie,
Generally speaking, opening a bank account generally does not constitute as "doing business". However, it could put you and your company on California's radar, and there very well could be subtle state laws that could put your business in jeopardy of fines and/or other penalties.
That being said, I would recommend speaking to an attorney familiar with California laws and regulations. You may also find some useful information from another one of our 'Incorporation Answers' replies to a similar question under the topic "Doing Business in Another State".
Hopefully you will find this information useful to answering your question.
