Entering the world of entrepreneurship sets you up not just to establish a sole company but also to reach as many possible customers as you can and expand your business.  For a first-timer, this can be an overwhelming thought but it is something possible to achieve.

If you feel that you are ready to take your business to the next level, you need to equip yourself with the necessary know-how. If for instance you have formed your business in New York and would like to expand in New Jersey, you need to know how to file a foreign LLC.

Foreign LLC

Foreign LLC happens when a business is formed in one state but registered or set up to do business in another. Contrary to what the term indicates it is not business outside of the country. It is referred to as foreign since there are different laws that exist in each state. 

If for instance your business was formed in Washington but you are aiming to do business in New Jersey, then your company becomes a foreign LLC in New Jersey. This means that your business has a foreign qualification in New Jersey.

Foreign Qualification in New Jersey

To put it simply, foreign qualification is asking permission to the state, in this instance from New Jersey, to do business legally. However, there may be some questions on how “to do business” is defined since each state is governed by different laws.

Some states, like New Jersey do not have a clear definition of what “doing business” is, which can be a bit confusing and problematic. Activities relating to doing business are evaluated on a case-to-case basis.

Generally, you will need to set up a foreign LLC if you are to do activities in New Jersey that involve selling goods and services, hiring employees, establishing an office, and deriving your income within the state. These are activities that qualify as doing business in New Jersey.

Filing for a Foreign LLC in New Jersey

If the activities you will be doing falls under the definition of New Jersey’s “to do business”, then the next logical step is to file for a foreign LLC. To start the process, you would need to file a Business Registration Application with the New Jersey Department of Treasury.

The Business Registration Application is the same form used to file for all business entities, whether domestic or foreign, in New Jersey. The application will require you to input basic information regarding your business, which includes the following.

• Your LLC name (and an alternate name, if the name is unavailable in New Jersey)
• State and date of the LLC’s formation, along with the effective date in New Jersey
• A detailed description of the business purpose in New Jersey
• Principal address
• The New Jersey registered agent name and address (A P.O. box address will not be accepted)
• An authorized signature

The filing fee for this is $125 and you also need to include a Certificate of Good Standing from the state where the LLC was formed or referred to as the home state.

Indeed, it’s truly rewarding when your business is growing and is finally capable of expanding. For once a newbie in the business world, expansion is considered as a milestone. To avoid any problems, make sure to adhere to the state’s policies where you will be filing as a foreign LLC.