Consulting remotely out of state

Asked by: Kim  — 22 August, 2012

If I am an LLC with a foreign entity registration in PA and I have a client that I work remotely with in MD, but do not have physical presence in MD, do I have to register as a foreign entity in MD?

Answered by: admin  — 22 August, 2012

Dear Kim,

The question of whether you need to register your company as foreign entity in any given state would depend on the laws of that state which define the concept of “nexus”, or, in other words, conditions under which your entity would be considered as “doing business” in that state.

Not being a licensed practitioner of law in Maryland I wouldn’t be able to give you a solid answer to that question, however typically a company would be considered as “doing business” in a state if it has employees, offices, assets, or significant business activity, etc., any of which would constitute physical presence in the state. If you only have one remote client, chances are your company does not cross this threshold.

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