When Should You Register Your Small Business in Multiple States?
Jonathan: Hello. My name is Jonathan Barlow. I’m a business law attorney here at Clear Counsel Law Group. A question that we recently received was this: If I have a Nevada LLC and I then do business in another set outside of Nevada, do I have to register in that other state as well?
The short answer to that question is yes, you should register in that other state. Now you can continue to keep the home state as Nevada and you would be treated as what’s called a foreign entity in the other state. Typically, if you’re doing business in another state, those state laws will require that those businesses also register with their state, and that therefore they can collect their filing fees and other things that they want from you in order to continue to do business. You could run afoul of the laws of those other states and face penalties, and interest, and problems like that if you fail to register in another state where you’re doing business.
Now they’re may be exceptions to that rule in those other states. Of course if you go outside of the state of Nevada to do business, I strongly encourage you to talk to a competent attorney in those areas who can advise you specifically about those state requirements. Brian had a question about this.
Brian: A quick question. How much business do you have to do in another state before you need to consider registering in that state?
Jonathan: That’s a great question. How much business do you need to do? Again, each state’s going to have a different requirement. There may be different amounts of revenue levels before you have to register. There may be exceptions to registration. Nevada has certain businesses that don’t have to register with the state to do business in the state of Nevada. To give you a specific answer to that question, I can’t do that because it’s going to be state-specific depending on what state you go to. Again, you can set it up in Nevada, and Nevada have has very favorable laws related to LLCs and corporations. Makes it a good place to file for your home base, including no state income tax. If you do take your business outside of the state of Nevada, you can talk to me or other attorneys who would be able to advise you specifically about what you should do in that other state. If you have any questions about this, please feel free to to give us a call here at our office and we’ll answer your questions.