A Foreign Qualification - Why do you need one? | Shipcrow
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A Foreign Qualification – When do you need one?

Have you just registered a company in any one US State?

Business license compliance is an important aspect of owning a company, but it does not have to be stressful or tedious. The following are the circumstances in which the requirement of your existing business registration and licenses could change, and your company could need extra registrations:

  • Your company began transacting business in another city, county of the state.
  •  Your company hired a new employee.
  • Your company began selling a new product or service.
  • You opened an additional business location.
  • You closed a business location.

The foreign qualification is the process of registration a domestic company in the foreign state when it has a physical presence or nexus in that foreign state.


Let’s say your business is initially registered in Delaware (DE) and you are operating a bank account in California (CA), you hired employees in New York (NY) and you have a warehouse in Pennsylvania (PA) then extra registration in CA, NY and PA will be required. You might also need to collect sales tax from the sales made in some states.







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