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Foreign Entity Question for consulting business

Asked by: ctc - 4 July, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 NJ LLC partners (consulting business) have decided to maintain sep.offices/P&L centers. One partner resides in PA - his clients are in CA, MD and NJ. Does the PA partner need to have a foreign entity presence in PA? NJ office has clients in NJ, NY and PA.
Answered by: Ray Albert - 7 July, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/194.jpg-630c771619e92bede7e6f696b56767b9 Dear Visitor,

By having an office in Pennsylvania, your business creates a nexus in the state. Other factors that would require a foreign entity would be if the business has employees or property in another state, as well as when you conduct much of your business in person.

So if your partner maintains an office in PA (even if it's a homeoffice) it would be a good idea to register the LLC as a Foreign Entity in Pennsylvania.

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