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FAQs

FAQs

Can a Texas LLC do business in another state?

An LLC formed in Texas may conduct activities in any other state, provided that the company obeys the foreign state's requirements for foreign qualification when doing business within the state. Normally, it includes filing with that state as a foreign limited liability company. In general, foreign qualification is required by any state in which your company has a physical presence, employees, or whose "doing business" statutes and regulations envelope your company's activities.

The LLC in Texas must file the appropriate forms with the Secretary of State where it desires registration, pay the requisite fees, and appoint a registered agent in that state. Filings are different for each state, but most states require a Certificate of Good Standing from Texas as proof of its active existence and that it is in compliance with state requirements. Other states may also charge annual reports and franchise tax fees.

The repercussions of not registering properly involve a variety of penalties, restrictions from utilizing the courts for legal disputes, or sanctions against non-conformity. A business should consider the operational and financial impact of its expansion to another state and verify compliance with all applicable regulations.

One IBC USA specialises in foreign registration for LLCs in Texas, making it easier and less confusing to handle multi-state requirements. With the help of professional experts, a business can confidently expand its operation across state lines without being exposed to various risks and penalties.