Foreign Entity Filings

Asked by: Sheri  — 27 August, 2012

How do you determine whether you must file as a foreign entity in each state?

Answered by: admin  — 27 August, 2012


Generally speaking, you are required to have your business registered in a specific state when you have a strong “nexus” in tha respective state. A nexus is usually defined as conducting your business in person, having an office, employees, physical property, such as vehicles or real estate, or if your business in that state is steady and continuous.

For example, if you lived and had your business registered in California, and hired employees in Arizona and Nevada, then you would need to file your company as a foreign entity in both AZ and NV states.

You can click here to read our research article on ‘Who Should Form a Foreign Entity‘. I believe this information may be of some additional help in answering your question.

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