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Does my online business need to foreign qualify in other states?

Asked by: Matt T  — 11 December, 2011

I incorporated in Utah. My business is an internet business where I sell access to digital information, so I sell no tangible goods. If I do not have an office in any other state, do I need to incorporate or Foreign Qualify in other states?

Answered by: admin  — 11 December, 2011


Judging by your description there is no need to foreign qualify your company in any other state.

Typically your company would be required to qualify as a foreign entity in a state where your business has physical presence, or significant business activity. The technicalities depend greatly on each state, but in general you would be required to register if you open an office, hire employees, lease a warehouse, etc.

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