Registering a "Foreign" LLC in Florida
QUESTION: Is an LLC incorporated in another state required to register as a foreign limited liability company in order to transact business in Florida
ANSWER: Yes, an LLC incorporated in another state is required to register as a foreign limited liability company in order to transact business in Florida. This process is known as foreign qualification.
Here's why:
- Legal Requirement: Florida law mandates that foreign LLCs must register with the Florida Division of Corporations before conducting business within the state.
- Protection of Interests: Registering as a foreign LLC allows your business to enforce contracts, own property, and sue or be sued in Florida courts.
- Avoiding Penalties: Failure to register can result in significant penalties, including fines and the inability to enforce contracts in Florida.
Key Steps for Foreign Qualification in Florida:
- Obtain a Certificate of Existence: This document, typically issued by your home state, verifies your LLC's good standing.
- Appoint a Registered Agent: You must designate a registered agent in Florida to receive legal and tax notices on your behalf
- File the Application: Complete the "Application by Foreign Corporation/Limited Liability Company for Authorization to Transact Business in Florida" and submit it to the Florida Division of Corporations. CLICK HERE to download the form and instructions.
- Pay Fees: There are associated fees for filing the application and annual report.
Important Considerations:
- Definition of "Transacting Business": This term is broadly defined and can include activities like owning real estate, making contracts, or having employees in Florida.
- Consult with an Attorney: It's advisable to consult with an attorney to ensure compliance with all legal requirements and to understand the specific implications of conducting business in Florida.