Foreign Registration: Operating Your LLC in More Than One State

If your business has a presence in more than one state, whether because you've relocated but kept clients back home or because you've expanded across state lines, foreign registration is how you formally register your existing LLC to operate in that additional state.

This article applies to both LLC tier and S Corp tier members. S Corp tier members should read the employer registration section, since operating in a new state can mean new payroll tax accounts.

What foreign entity registration is

Foreign entity registration registers your business in a state other than the one where it was formed, linking that new registration to your existing LLC. The word "foreign" causes understandable confusion here. It has nothing to do with international business. The state where your LLC was formed is its home or domestic state, and every other state is considered foreign.

Registration happens at the entity level. Your LLC gets registered with the new state's Secretary of State office, in much the same way you originally set up your domestic LLC. Your entity, EIN, and S Corp election stay exactly as they are, because you're adding a registration rather than creating a new company.

The ongoing obligation is the part worth planning for: you'll need to keep up with the requirements in both states to stay active and in good standing in each.

Why members choose it

Foreign registration is a good fit if you plan to keep operating in your current state and want to operate officially in another state as well. You can pursue clients and deliver services in both. In exchange, you pay fees, file state returns, and maintain your standing in both states.

How to know whether you need to register

Whether a state considers your business to have a presence there depends on the specifics, but these questions are a useful starting point:

• Do you have employees or regular contractors located in another state?
• Do you maintain an office, storefront, or other physical space in another state?
• Does your business own property or real estate in another state?
• Do you have a business bank account in another state?
• Do you conduct sales or generate revenue in another state?

A "yes" to any of these may mean your business has a presence in that state and could need to register.

To be clear about scope: Collective can't determine or advise on whether registration is legally required for your situation. That analysis depends on state nexus rules, which vary and change. We strongly recommend consulting an outside legal or tax advisor who specializes in multi-state requirements. Once you've decided to proceed, we can help with the filing.

Getting started

For most states, Collective manages foreign registration directly. We prepare everything on your behalf. In cases where we can't submit to the state in-house, we work with our registered agent partner, Registered Agent Solutions, Inc. (RASI), to complete the filing. Using RASI may add a separate service fee, which appears on the quote you approve before any work begins.

You're also free to handle the registration outside Collective, either through another provider or on your own. If you take that route, please send us the foreign registration documents once the state has processed them. That lets us track the registration for tax purposes and keep sending you the right reminders for both states.

Filing fees apply, and Collective passes those through to you after you approve the quote. A quote typically includes the foreign state's registration fees, a certificate of good standing or certified copy from your domestic state (required in most states), registered agent fees, and late filing penalties where applicable.

To begin, message us through the Message Center in your Collective dashboard.

The foreign registration process

1. Review and approve the quote. We send a quote covering form preparation and state fees. Nothing proceeds until you approve it.
2. Review and sign the forms. Once you approve the quote, form preparation begins, and documents come to you for review and signature where a signature is required.
3. The filing is submitted. Prepared and signed forms are filed with the relevant state agency on your behalf.
4. Receive confirmation. When the state finishes processing, you'll receive confirmation that your LLC is foreign registered in the new state. Processing times vary widely by state.

Unless you tell us otherwise before filing, RASI acts as your registered agent in the new state. Collective covers the cost of RASI's registered agent appointment in one state as part of your membership fee. Additional states carry an annual fee, which appears on your original quote. If you'd prefer a different registered agent, let us know when you submit your initial request.

After your registration is processed

Work through the items below that apply to your situation.

Update your address with the IRS

This step applies if your business address has changed, which is typically the case with a relocation rather than an expansion.

1. Complete the IRS change of business address form (Form 8822-B) and sign it.
2. Mail it to the IRS service center for your location. The correct address depends on your state, so check the current mailing addresses on IRS.gov before sending.

If you'd like Collective to prepare and submit this filing for you, let us know and we're happy to help.

Register as an employer in the new state

This step applies if you run payroll in the new state, which includes S Corp tier members paying themselves as an owner-employee and any member with employees there.

1. Collective registers you as an employer in the new state and obtains the state tax IDs you need to run payroll there.
2. Your new tax IDs are added in Gusto, the payroll platform Collective uses.
3. If this is a relocation rather than an expansion, we close the payroll tax accounts in the state you moved from. If you're continuing to run payroll in both states, those accounts stay open.

Notify the people who need to know

1. Inform your banks, clients, vendors, and any relevant government agencies of the change and any updates to your contact information.
2. Update your business address on your website, invoices, marketing materials, and anywhere else it appears publicly.

Next steps

To get started, head to the Message Center in your Collective dashboard. For a comparison of all four relocation options, see Moving States with Your LLC: Your Four Options. For more on what a registered agent does, see Understanding the Role of a Registered Agent for Your LLC.

If you have questions specific to your business, reach out to your Collective team. They're here to help.

Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.