Is Your Business Qualified to Cross State Lines?
In today’s economy, businesses of all sizes increasingly find themselves doing business across state lines. Given the state-by-state nature of business regulation, companies that intend to (or simply find themselves doing) business in a state other than their home state must determine if they need to qualify to do business there–a difficult determination and a trap for the unwary. And the consequences of making the wrong decision can be harsh, ranging from monetary penalties for the entity to jail time for its officers and directors. If qualification is necessary, fulfilling the qualification requirements can be a complex, costly and time-consuming task.
The determination of whether qualification in other states is necessary hinges on whether or not you are “doing business” in that state. Perhaps not surprisingly, what “doing business” means varies from state to state. In some states, virtually anything you do there requires qualification, and in other states there is a surprisingly long list of activities that are not considered “doing business” and therefore do not require qualification in that state.
Regardless of whether your business is located in Illinois and you find yourself increasingly doing business elsewhere, or if your principal place of business is in another state and you need to know whether to qualify to do business in Illinois, Robinson Payne LLC can help determine whether qualification is necessary. And, if qualification is necessary, we can help with the process. If you are unsure of your situation, please contact us for clarification. You don’t want to unknowingly be in violation. The penalties can be harsh.