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Do we need to file as foreign entity in more than one state?

Asked by: Greg Peters - 29 July, 2012 We current have a Delaware LLC that is registered as a foreign entity in Virginia.

My business partner is running operations from Virginia. I am living in California, and will be traveling to Virginia for about three months of the year, while for the rest of the year, I will work remotely from California.

Do we need to file as a foreign entity in California?

Also, are there any issues if we apply for a company credit card using my address in California or should we stick to Virginia only? Thanks so much
Answered by: Ray Albert - 1 August, 2012 Greg,

Without knowing the exact nature of your business, it's hard to answer that directly.

To my knowledge, if you plan on writing off any of your business expenses in California, or have an office or conduct your work in person there, you would create a nexus in the state and the LLC have to be filed as a foreign entity in California.

There should be no issue regarding where you apply for the company's credit account. It's never a bad idea to contact a few potential credit card providers to make sure.


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