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When Should a FL Based S Corp file Foreign Entity in CA?

Asked by: Laura M  — 12 September, 2013

I’m a FL based S Corp and have been contracted to perform Engineering work in CA from a company based in TX. We are paid by the TX Company direct to our FL account. Do I need to register my S Corp in CA as a Foreign Entity?

Answered by: admin  — 12 September, 2013

Dear Laura,

Questions of foreign qualification are tricky by the nature of corporate laws in the state where nexus establishment is debated, in this case California. Some actions, such as establishment of permanent office in the state would signal establishment of nexus and thus require foreign qualification. Other, such as selling to consumers in the state, are usually not.

In your case I would not risk giving advice, and instead would recommend you to contact a California licensed attorney, who will be in a position to analyze your situation and suggest correct course of action.

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