Foreign qualification is the process by which a business entity that was formed in another state seeks permission to conduct business in Colorado. This involves registering with the Secretary of State in Colorado and complying with the state's specific requirements for foreign entities operating within its jurisdiction.
Follow the guide below to help you register with the Secretary of State in Colorado or use Mosey to do it.
Use Mosey to register with the Secretary of State in Colorado.
Avoid the hassle of doing it yourself and use Mosey to automate foreign qualification, annual reports, and registered agent service.
Colorado Foreign Qualification for C Corporation, LLC
You must file a Statement of Foreign Entity Authority (SOFEA) with the Secretary of State if you are "transacting business" in Colorado. Like most states, Colorado does not define "transacting business" but provides a list of activities considered not "transacting business." Note: Unlike most states, Colorado does not require a Certificate of Good Standing to obtain foreign entity authority.
Establish a Registered Agent
All entities on record with the Secretary of State must have a registered agent listed with a Colorado address, even if their business is in a different state. A registered agent receives service of process and other legal documents for your business.
Conduct True Name Search
A true name search will verify that your business's legal name is available in Colorado. You must choose an assumed entity name to transact business in Colorado if your business's true name (the name it's formed under) is not available in Colorado.
File Statement of Foreign Entity Authority (SOFEA) Online
Visit the Secretary of State's Business Organizations page online to file a Statement of Foreign Entity Authority (SOFEA). In addition, you'll need to provide information about your business, such as the true name (and the assumed entity name, if any), the jurisdiction of the formation, the principal office address, and the start date of your business. Your Colorado registered agent information is also required.
What else do I need to know?
Once you are registered with the Secretary of State, you may have additional requirements to maintain your "good standing" in the state. Failing to do so can result in fines, back taxes, and forfeiting certain priveleges within the state.
Maintaining a Registered Agent
Most states require that you have a registered agent that can receive important mail from the Secretary of State should they need to contact you. There are many commercial options available or you can use Mosey to be your registered agent and keep your information private in Colorado.
Annual Reports and Taxes
In addition to maintaining a registered agent, most states require you to file a report annually. Registration can also trigger state taxes such as a franchise tax or income tax. You can use Mosey to identify these additional requirements to maintain good standing in Colorado.
