Foreign qualification is a process by which a business entity that was originally formed in another state seeks permission to operate in Texas. This involves registering with the Secretary of State in Texas to ensure compliance with local laws and regulations.
There are 2 different ways to foreign qualify in Texas depending on your legal entity type and tax classification. Follow the guide below to help you register with the Secretary of State in Texas or use Mosey to do it.
Use Mosey to register with the Secretary of State in Texas.
Avoid the hassle of doing it yourself and use Mosey to automate foreign qualification, annual reports, and registered agent service.
Texas Foreign Qualification for LLC
Foreign entities "transacting business" in Texas are required to register with the Texas Secretary of State. Generally, a foreign entity is "transacting business" in Texas if it has an office or an employee in Texas.
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Establish a Registered Agent
The Texas Business Organizations Code requires every domestic or foreign filing entity to maintain a registered agent and office. It cannot be a post office box or commercial mail service unless that commercial enterprise is the registered agent.
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Create an SOSDirect Account
A SOSDirect Account is required to file the Application for Registration. Create an account if you don't already have one.
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Complete and File Registration Form
File Application for Registration of a Foreign Limited Liability Company (Form 304) with the Texas Secretary of State.
Texas Foreign Qualification for C Corporation
Foreign entities "transacting business" in Texas are required to register with the Texas Secretary of State. Generally, a foreign entity is "transacting business" in Texas if it has an office or an employee in Texas.
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Establish a Registered Agent
The Texas Business Organizations Code requires every domestic or foreign filing entity to maintain a registered agent and office. It cannot be a post office box or commercial mail service unless that commercial enterprise is the registered agent.
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Complete and File Registration Form
File the Application for Registration of a Foreign For-Profit Corporation (Form 301) with the Texas Secretary of State.
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 Texas.
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 Texas.
