Call Us Now: +1 (877) 330-2677 Live Chat: ONLINE NOW            
https://d25eic0jctudgb.cloudfront.net/images/site/general/answers-to-answers-8743d0241f5d8c2c996225efe2063f89
https://d25eic0jctudgb.cloudfront.net/images/site/headlines/articles.jpg-5fa541d76bf4be9016b1176147b3bc96

Foreign Entity

Asked by: Robyn Bottens - 5 May, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 We are incorporated in the state of CA. We distribute fertilizer products directly to farmers in CA, but have a friend interested in selling our products to their customer base in MI. Our friend in MI would operate as and Independent Business Owner and purchase the products from us and resell them. I'm thinking that it's not necessary to file for authority to do business in Michigan, am I correct?
Answered by: Robert Kowalski - 5 May, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Dear Robyn,

Technically your company does not do business in Michigan directly, since your friend operates as an independent reseller. As such you don't need to foreign qualify your company in Michigan, as no nexus is established in that state.

Also, he could do this business as a sole proprietor, however it might be a good idea for him to organize his business as a separate entity (such as LLC or Corporation). This way there would be no doubt that he operated as an independent entity and not as your company representative.

We Want To Connect With You!

Social Media is increasingly the preferred method for businesses to connect with their clients, peers and customers. We are dedicated to share information and useful tools to help you grow your business.

Like us on Facebook, follow us on Twitter, and let's begin the exchange to Help Grow America One Business at a Time - starting with yours!

https://d25eic0jctudgb.cloudfront.net/images/site/general/payment-methods-footer-052a63251a379d6e5ece1801f07470fc Official PayPal Seal SecurityMetrics for PCI Compliance, QSA, IDS, Penetration Testing, Forensics, and Vulnerability Assessment