Foreign Entity Registration When Operating across State Lines

 Dyan Gershman is a New York City attorney who guides Gershman Law PLLC and delivers a host of corporate law services aimed at a domestic and international clientele. Experienced in commercial contracts, Dyan Gershman has knowledge of business formation in new jurisdictions, including doing business in a state in which one does not have a previous business presence.

The state in which the company is established known as the domestic or home state. Being registered in a state grants specific protections, such as the right of representing oneself and related business interests in cases that arise within the jurisdiction.

Foreign entity registration confers similar privileges and is done when one plans to conduct business within another state. Common cases include selling items to consumers in a state, as well as facility expansion and hiring within a new state. This is distinct from incorporation and corporate organization protocol, which are limited to operations in one state.

When moving operations into a new state it makes sense to consult closely with an attorney, as not every business dealing out of state needs foreign entity registration. In general, isolated transactions across state lines, or selling to consumers in another state while operating all aspects of business within the home state, may not automatically trigger such a legal filing requirement.