When you think of “foreign qualification,” you probably think of a business that operates outside the United States. This is not the case. In order to do business in any U.S. state other than the state where the business was originally formed, the business must foreign qualify in that state.
For example, a business that was formed in Georgia is only domestic in Georgia. In order to do business in Florida, it must first foreign qualify.
In order to foreign qualify a business in Florida, the business must register for a certificate of authority for any and all business it will conduct here. The company must also pay all required state fees.
If you do not qualify your business in Florida, there will be serious consequences. For instance, your business will not have access to Florida courts. If a Florida consumer sues your business in a Florida court, you are not allowed to defend yourself because you will not be recognized as a legitimate business.
You may also be penalized with fines, penalties, and back-taxes.
As an alternative to foreign qualifying, you may also incorporate your business or form an LLC in Florida, but this will create a separate entity.
If your business is domestic in another state and you want to do business in Florida, contact Boyer Law Firm, PL, so that we can discuss the best option for your particular situation.
