Can a foreign corporation do business in california?

The California Company Code does not define what constitutes interstate or foreign commerce, but it does specify activities that, in isolation, do not constitute intrastate business transactions. Once your application has been processed, your company will be able to conduct business in California.

Can a foreign corporation do business in california?

The California Company Code does not define what constitutes interstate or foreign commerce, but it does specify activities that, in isolation, do not constitute intrastate business transactions. Once your application has been processed, your company will be able to conduct business in California. This is an overview of the rules on how to qualify your foreign (non-California) limited liability company (LLC) to do business in California. If your company is organized as a corporation rather than an LLC, the rules and requirements for foreign qualification in California are similar.

You can also find guidance on this California Franchise Tax Board webpage on the rules for doing business in California. If you meet any of the following criteria, you are “doing business in California” and, therefore, must complete a foreign company registration. Selling physical or digital products online to customers located in California would not qualify you to do business there, unless the specific criteria discussed below are met. The concept of “doing business in California” is set forth in the definition of “intrastate business transaction” for a corporation or S-Corp as the conduct of repeated and successive transactions of its business in California, other than interstate or foreign commerce.

For California purposes, if your LLC is formed in another state, then it is known as a foreign LLC in California. If your LLC conducts business in California without authorization, you cannot file a lawsuit in the state. In addition, a member or manager of the LLC is not liable for the debts, obligations, and other liabilities of the LLC solely because the company conducted business transactions in California without a certificate of registration. Like most states, the California LLC Act specifies certain activities that do not constitute business transactions in the state.

Doing business in California is defined as actively participating in any transaction for the purpose of obtaining financial or pecuniary gain or gain. Specifically, in this post we will help you understand whether or not your current legal entity needs to apply for registration of a foreign company in California. Your corporate name will most likely meet the legal standards for business names set out in state law, but if you don't, you'll need to submit a false name for use strictly within California. For example, if you own a bagel store that makes bagels in Oregon and you take steps to expand and open a new bagel store in California, you would now be doing business in the state of California.

Meg Skrzypek
Meg Skrzypek

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