Austin, TX 78711-3697. See Foreign (non-Maryland) Businesses > Foreign Limited Liability Company Registration. You must file the application in duplicate. Whether an entity is domestic or foreign does not depend on the location of the principal business office. 1442), Sec. Yes. (b) The appellate court shall determine the period, which may not be longer than 60 days after the date the case is remanded to the trial court, to be afforded to a foreign filing entity to enable the foreign filing entity to cure its problems under Subsection (a). An entity that registers during the grace period will not be charged late filing fees. Determining whether to register is a business decision that may have tax consequences, raise legal issues, or impact licensing from another agency or state board. 9.003. (11) that the secretary of state is appointed the agent of the partnership for service of process under the same circumstances as set forth by Section 5.251 for a foreign filing entity. (c) The certificate of reinstatement must contain: (1) the name of the foreign filing entity; (2) the filing number assigned by the filing officer to the entity; (3) the effective date of the revocation of the entity's registration; and. 9.103. See Foreign Limited Liability Company Certificate of Registration Application (Form 521). Foreign nonprofit corporations and certain foreign limited partnerships that are not subject to franchise taxes are required to file a periodic report with this office not more than once every four years. (b) A district court described by Subsection (a) has jurisdiction of the action for revocation of the registration of the foreign filing entity. Added by Acts 2009, 81st Leg., R.S., Ch. January 1, 2006. See Foreign Entity Registration > Foreign Registration Statement (Limited Liability Company). but will be filing a conversion to convert the foreign entity to a Texas filing entity. The certificate can either be a certificate evidencing the fact that the entity has dissolved, merged, etc., or it can be a certified copy of the dissolution, merger or conversion. Submit in duplicate to: Secretary of State. or still go with a local one and later get a permit or transform into foreign one? We get foreign LLCs registered to do business in Texas every day. The unique entity identifier used in SAM.gov has changed. REQUIREMENTS OF OTHER LAW. While you do have to maintain 2 LLC flings (a Registered Agent for each LLC and file Annual Reports in both states), you will not pay taxes in both states. FILING OF ACTION BY ATTORNEY GENERAL. September 1, 2009. Making online sales in Texas (from another state) generally would not require you to register your businessespecially if these sales are the only activities your business conducts in Texas. (a) If revocation of a registration is required, the secretary of state shall: (1) file a certificate of revocation; and. Sec. For all other entities, the registration fee is $750. It was formed in Ga and will possibly move to La. If you are not sure if your business is current with your tax requirements, call the Comptroller at (800) 252-1381 or (512) 463-4600. FILING OF DECREE OF REVOCATION AGAINST FOREIGN FILING ENTITY. My foreign entity ceased to exist in its jurisdiction of organization two years ago, but the secretary of states records still show that it has an active registration. (B) appointing or maintaining a trustee or depositary related to the entity's securities; (5) voting the interest of an entity the foreign entity has acquired; (6) effecting a sale through an independent contractor; (7) creating, as borrower or lender, or acquiring indebtedness or a mortgage or other security interest in real or personal property; (8) securing or collecting a debt due the entity or enforcing a right in property that secures a debt due the entity; (9) transacting business in interstate commerce; (10) conducting an isolated transaction that: (A) is completed within a period of 30 days; and. However, its advantages are over the long run, it may be less expensive (you just need to maintain the LLC filing in Louisiana). OBLIGATIONS AND LIABILITIES. (a) A foreign filing entity registers by filing an application for registration as provided by Chapter 4. January 1, 2006. Austin, Texas 78701. This is because Texas doesnt have a personal income tax. This special type of assumed name is often referred to as a fictitious name. See Form 406 (Word, PDF) and Form 412 (Word, PDF). Index: FAQ & Help - Secretary of State of Texas January 1, 2006. Since you said you didnt mind starting over, this may be the one most worth considering. (2) a merger into another foreign filing entity with the foreign filing entity making the amendment succeeding to the registration of the original foreign filing entity. For all other entities, the registration fee is $750. Acts 2007, 80th Leg., R.S., Ch. A vote cast or consent provided by a foreign entity with respect to its ownership or membership interest in a domestic entity of which the foreign entity is a lawful owner or member, and the foreign entity's participation in the management and control of the business and affairs of the domestic entity to the extent of the participation of other owners or members, are not invalidated if the foreign entity does not register to transact business in this state in accordance with this chapter, subject to all law governing a domestic entity, including the antitrust law of this state. Generally, a foreign entity is transacting business in Texas if it has an office or an employee in Texas or is otherwise pursuing one of its purposes in Texas. Registering a foreign LLC to do business in Texas comes with a statutory fee of $750. TRANSACTING BUSINESS OR MAINTAINING COURT PROCEEDING WITHOUT REGISTRATION. An entity the registration of which has been suspended under this section may transact business in this state only after the entity: (1) changes its name to a name that is available to it under the laws of this state; or. Some other examples (but not including all) are: Application for Certificate of Registration of Foreign LLC Application for Registration Certificate of Registration of Foreign LLC Foreign Registration Statement Application for Admission to Transact Business Certificate of Authority Statement of Foreign Qualification to Conduct Activities and more. (a) An appellate court that affirms a trial court's findings against a foreign filing entity under this subchapter shall remand the case to the trial court with instructions to grant the foreign filing entity an opportunity to cure the problems for which the entity has been found guilty if: (1) the foreign filing entity did not make an application to the trial court for stay of the entry of the judgment; (2) the appellate court is satisfied that the appeal was taken in good faith and not for purpose of delay or with no sufficient cause; (3) the appellate court finds that the problems for which the foreign filing entity has been found guilty are capable of being cured; and. Return in duplicate to: Secretary of State. For example, an LLC that had been conducting business in Texas for 3 years (or 2 years and 1 month) prior to registration would owe a late fee of $2250. It has been the practice of the Texas Department of Insurance to refuse a non-resident agency license for a foreign entity unless the entity has registered with the secretary of state. All for-profit entities in Texas are required to submit an annual franchise tax report to the Comptroller (we address the franchise tax itself in the next question). For information on state taxes, visit the Comptroller of Public Accounts or call (800) 252-1381. This is still one LLC; its just registered to do business in two states. . the entity cannot maintain an action, suit, or proceeding in a Texas court until it registers; the attorney general can enjoin the entity from transacting business in Texas; the entity is subject to a civil penalty equal to all fees and taxes that would have been imposed if the entity had registered when first required; and. (b) The certificate of revocation must state: (1) that the foreign filing entity's registration has been revoked; and. For more information about federal taxes, visit www.IRS.gov or call (800) 829-3676. First, do you have a foreign filing entity, as described in BOC 9.001? See Application for Certificate of Registration of Foreign Limited Liability Company (Form FL-01). And is the foreign entity subject to taxes in both states one is doing business (the home state and new state)? I am originally from Texas. By signing the application for registration, the foreign entity consents to the appointment of the secretary of state as an agent of the foreign filing entity for service of process under . Most states (Texas is an exception) have similar fees for domestic and foreign LLCs. Or is it just reporting but no actual business was done in one state? Are they subject to Texas state franchise taxes? January 1, 2006. Currently in Mississippi, but moving to Washington State soon. Disclaimer: Nothing on this page shall be interpreted as legal or tax advice. Helpful resources to determine whether an entity's activities in Texas require registration include: Another helpful resource may be the comptroller's Texas Nexus Questionnaire (PDF), used by the comptroller to determine if a foreign entity is "doing business" in Texas for tax purposes. Hi Indy, it comes down to where the LLC is transacting business. (d) Not later than the 10th day after the date notice under this section is first published, the attorney general shall send a copy of the notice to the appropriate foreign filing entity at the foreign filing entity's registered office in this state. Do I have to file an application for registration with the secretary of state? Acts 2011, 82nd Leg., R.S., Ch. Matt Horwitz has been the leading expert on LLC education for the past decade. The threshold level of activity required for a tax nexus is generally lower than the threshold level of activity that requires registration with the secretary of state. Changes the business or activity stated in its application for registration. PDF The attached form is drafted to meet minimal statutory filing - Texas 84 (S.B. What do I need to file? Hi Geri, the annual fees may differ. (d) Subsection (c)(3) does not apply to a general partner of a foreign limited partnership. 26, eff. 9.054. If the secretary of state determines that the name of a foreign filing entity or the fictitious name under which it is registered to transact business in this state does not comply with Chapter 5, the secretary of state may not accept for filing the certificate of reinstatement unless the foreign filing entity contemporaneously amends its registration to change its name to a name that complies with Chapter 5, or provides a fictitious name under which the foreign filing entity will transact business in this state that complies with Chapter 5. Early voting for the May 6, 2023 Uniform Election runs from Monday, April 24, 2023 Tuesday, May 2, 2023, SOSDirect: Business Searches & Formations, Termination or Withdrawal of a Registration, Revocation and Reinstatement of a Registration. Part of what makes Texas so business-friendly is our favorable tax environment. 9.105. But the big question is if Im not actually doing any operating in Texas for the first 2 years, is it worth the time and money? 1737), Sec. EIN number and bank account will stay the same. Taxes are based on where and how the income is made. I want Texas to be my business home state when I move back. SUPPLEMENTAL INFORMATION REQUIRED IN APPLICATION FOR REGISTRATION OF FOREIGN LIMITED LIABILITY COMPANY. Each state has different laws when it comes to the definition of doing business, so if youre not sure whether you need to register a Foreign LLC or not, we recommend reaching out to a few attorneys for a quick chat. Box 13697. See Limited Liability Company Application for Registration (Form 304). So I am running a staffing company. Under Foreign (outside of Colorado) Entities, click Foreign entity to begin. In addition, a foreign entity may need to file an application for registration with the secretary of state in order to meet other state law requirements. Austin, TX 78711-3697. September 1, 2009. 9.301. See Form 308 (Word, PDF). 9.106. (b) The attorney general may bring suit to recover amounts due to this state under this section. JUDGMENT REQUIRING REVOCATION. RIGHT OF FOREIGN ENTITY TO PARTICIPATE IN BUSINESS OF CERTAIN DOMESTIC ENTITIES. See Limited Liability Company Forms > Application for Registration of Foreign Limited Liability Company (Form L025). See Foreign limited liability companies > Registration of Foreign Limited Liability Company Forms and Procedures. (a) The clerk of a court that enters a decree revoking the registration of a foreign filing entity shall file a certified copy of the decree in accordance with Chapter 4. 1203), Sec. However, if the registered foreign entity converts to another type of entity, it can amend its registration so that the converted entity succeeds to its registration by filing Form 422 (Word, PDF). (e) The registration of a foreign filing entity may not be reinstated under this section if the termination occurred as a result of: Acts 2009, 81st Leg., R.S., Ch. 48, eff. 152.901 et seq. See Application for Certificate of Authority of Limited Liability Company (Form LLF-1). Acts 2005, 79th Leg., Ch. The notice must contain: (1) a statement of the pendency of the action; (4) the earliest date on which default judgment may be entered by the court. 46, eff. Acts 2017, 85th Leg., R.S., Ch. (b) The secretary of state may revoke a foreign filing entity's registration if the secretary of state finds that: (1) the entity has failed to, and, before the 91st day after the date notice was mailed, has not corrected the entity's failure to: (A) file a report within the period required by law or pay a fee or penalty prescribed by law when due and payable; (B) maintain a registered agent or registered office in this state as required by law; or, (C) amend its registration when required by law; or. 9.251. 2856), Sec. Sec. An application made under this subsection must be made not later than the fifth day after the date the court makes its findings under Section 9.155. Do I pay taxes on the same income twice for both states? When a business expands to operate out of, and do business in multiple states, it must register (or qualify) as a Foreign LLC in each new state where it wishes to operate. To answer your initial question, let me first explain something: an LLC that is formed in one state (a domestic LLC) and is registered to do business in another state (foreign LLC) is still just 1 LLC. AMENDMENTS TO REGISTRATION. (e) If a court finds that a foreign filing entity has not cured the problems for which revocation is sought within the period prescribed by Subsection (c), the court shall enter final judgment requiring revocation of the foreign filing entity's registration. The total fee for converting a Texas corporation to a Texas limited liability company is $600. September 1, 2021. A foreign entity that is eligible under other law of this state to register to transact business in this state, but that is not registered under that law, may register under this chapter unless that registration is prohibited by the other law. See Form FLLC-1 Application for Foreign Limited Liability Company Registration. Notice: Businesses performing disaster- or emergency-related work: Certain out-of-state businesses who enter the state to perform disaster- or emergency-related work in this state during a disaster response period are exempt from the requirement to register as a foreign entity pursuant to Chapter 112 of the Business & Commerce Code. While your foreign LLC is subject to the Texas Franchise Tax, the no-tax-due threshold is fairly high, so your business may end up not owing anything. 748), Sec. A series LLC formed under the laws of another jurisdiction will be treated as a single legal entity for qualification purposes. (e) The registration of the foreign filing entity in this state terminates when a certificate of withdrawal under this section or a certificate evidencing termination under Subsection (d) is filed. Usually though, its between 3 to 8 business days. Sec. There is no general business license in Texas; however, depending upon the type of business the entity engages in, additional licensing requirements from other Texas agencies might apply. See Foreign Limited Liability Companies (489). For information regarding state tax issues for out-of-state businesses assisting with recovery, please see the Texas Comptroller of Public Accounts website. This is more expensive, since youll need to maintain two LLC fillings, maintain two Registered Agents, and maintain two LLC Annual Report filings. If so, the second consideration is whether the foreign filing entity is transacting business in Texas? Please consult a licensed professional if you have legal or tax questions. CIVIL PENALTY. However, depending on the state where you are registering your LLC as a Foreign LLC, the name of the filing form varies widely. 39 (S.B. (7) that any money due or accrued to the state has been paid or that adequate provision has been made for the payment of that money. The entity has failed to pay a fee required in connection with the application for registration, or. 45, eff. 9.101. Does my foreign entity need to file an application for registration? If a foreign entity transacts business in Texas without registering. A foreign limited liability limited partnership transacting business in Texas must apply for two certificates of registration. BUSINESS ORGANIZATIONS CODE CHAPTER 9. FOREIGN ENTITIES - Texas APPLICATION FOR REGISTRATION OF FOREIGN LIMITED LIABILITY PARTNERSHIP. 9.202. Its kind of like converting the Georgia LLC into a Louisiana LLC. Can I file an application for registration online? DOC Form 305 - Professional Limited Liability Company Application - Texas (3) any debts, liabilities, obligations, and expenses incurred, contracted for, or otherwise existing with respect to the company generally or any other series shall be enforceable against the assets of that series. When we register your foreign LLC in Texas, we include our monthly, local registered agent service, which gives you all the tools you need to manage your Texas business affairs. LLCs can only be filed online. They also change over time and are specific to your situation. Austin, TX 78711-3697. Changes to the registered agent or registered office information must always be filed with the secretary of state and comply with applicable statutory requirements. How can I change the entity address as listed in the secretary of state's records? A foreign filing entity or foreign limited liability partnership registered in this state that converts to a domestic filing entity is considered to have withdrawn its registration on the effective date of the conversion. See Application for Certificate of Authority (Form L-09). The late filing fee is equal to the registration fee for each full or partial calendar year that the foreign entity transacted business in Texas without being registered. For all other entities, the registration fee is $750. Heres what you get when you go Independent. 1319), Sec. No. (c) Subchapter K, Chapter 152, governs the registration of a foreign limited liability partnership to transact business in this state.