Does your business qualify to conduct business in Florida?
What does it take to become an active legal Florida entity?

Take the test: Are you located outside the state of Florida? Do you need to Foreign Qualify your business in Florida?
Ask the below 5 questions, if the answer is “yes” to any of the below questions, you need to file a foreign qualification:

1. Will your legal entity hire and maintain any W2 Employees in Florida?
2. Will your legal entity be required to hold special licensing? (i.e. Mortgage, Real Estate, or Contractors License)
3. Will your legal entity hold any real property? (i.e. rental property, personal property, or commercial property)
4. Will your legal entity have a brick and mortar location? (i.e. office building or will a sign be hung somewhere and display the company name)
5. Will your legal entity be shipping any products from within the State of Florida?
6. Do you receive mail, conduct marketing and sales or have any active agents representing your business in the State of Florida?
7. Can you be notified and served legal process during the statutory days and hours?

If the answer to any of the above is yes, don’t try to manipulate the question and answer no. There is a high risk involved in doing so. Many legal entities make the mistake of trying to find a way out of having to file to do business in the state of Florida for the purpose of evading many issues. If you do this, you put your employees, business and reputation in Florida at risk. You become a constant target for the state of Florida to make sure that your entity is always in compliance. The cost and headaches involved in dealing with the state of Florida are far less if your entity is honest and follows the correct steps to being in legal compliance than to have to do so because it was caught doing business without the legal authority.

Why is it important to Foreign Qualify in Florida?
If you are outside the state of Florida and you form a legal business entity in Florida it is generally with the intention of separating yourself from the business of which you operate and/or have financial interest in. When you foreign qualify in Florida you are asking the State of Florida for permission to conduct your business within their borders, but more importantly you are requesting that that State of Florida recognize your legal business entity separate from the individuals who are operating and/or have financial interest in it. When a business entity be it a Corporation, Limited Liability Company, Partnership or other entity type operates within the State of Florida that has not legally approved it to operate within its borders then if for any reason legal matters should arise in the State of Florida, Florida can make the decision to not recognize the legal entity and instead hold the operating person or persons along with the persons who hold financial interest personally liable for those legal proceedings as if it was a Sole Proprietorship

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Does your business qualify to conduct business in Florida?What does it take to become an active legal Florida entity?

Does your business qualify to conduct business in Florida?
What does it take to become an active legal Florida entity?