Are you a business owner? Does your company conduct business in any other state than the state where you initially got registered? If yes, then I am bringing this exclusive guideline to help you understand foreign LLC, its registration procedure, and other essential details.

Let’s start from the very basic. Before registering your foreign LLC, you need to have a clear image of a foreign LLC and why you need it.

What Is A Foreign LLC

If your limited liability company (LLC) is expanding, and you want to open it at a new location in a different state, you don’t have to form a new LLC, as you can get the existing LLC registered in a new state.

You must already have familiarity with the basic concept of an LLC but let’s just recall it once. LLC is an abbreviation of Limited Liability Company. It is defined as a type of legal entity that is essential to operate a business. 

LLCs are very famous since they provide the same limited liability as a corporation but are comparatively cheaper and easier to form and run.

What Are The Steps For Foreign LLC Registration?

What Are The Steps For Foreign LLC Registration?

 

If you want to expand your business in more than one state, you must register your LLC in all domestic or foreign states where you are currently doing a business or planning to do a business.

Your new business registration process in other states is just the same for partnerships and corporations. However, the new LLC would be registered as “foreign” in any state where you want to add a location.

The registration process of a foreign LLC varies for each state. However, I have gathered some points to help you understand the process in general.

These steps will also let you know about any documents you may need in the registration process.

  • The amount of registration fee for foreign LLC registration in that particular state
  • The official address for sending the registration application.
  • The name of the LLC and the name of your business, if they are different.
  • The state where your LLC is originally or initially registered with its date of formation and the duration or time period of formation.
  • The official address of your original LLC
  • And finally, the street address of the foreign LLC for which you are filing a registration application.

Foreign LLC Vs Domestic LLC

There is a slight difference between both terms. Let me give a clear image of what both terms mean by providing an easy and simple example. 

So, let’s start with a domestic LLC;

It is a corporation or limited liability company operating in the same state where it was organized and registered initially. In other words, if you are registering an LLC or corporation in a state which is ideally the only state where you are conducting a business, then it is called a domestic LLC or corporation.

Moreover, a domestic LLC is a business organized under the laws of a state in the U.S. 

On the other hand, if a business is registered in another state different from where it was organized, this second state becomes a foreign state. Therefore, your business will be registered as a foreign LLC in this second state. 

Example

For instance, if you register your business in Los Angeles with a Los Angeles address, you’re registering as a domestic corporation or LLC. On the contrary, if you also want to do the same business in New York, you will now register as a foreign business (corporation or LLC) in that state.

General FAQ

Frequently Asked Questions

Here are answers to some of the frequently asked questions

As far as the LLC foreign ownership is concerned, anyone, including a resident or foreigner, can form a Limited Liability Company or LLC in the USA. For this, you do not need to be a U.S. citizen. 

The LLC foreign partner will be considered to be engaged in a U.S. business or trade. However, the LLC should withhold 35% of its profits for taxes. Moreover, this tax should be filed and paid to the IRS on a quarterly basis.