If I am looking to start an domestic LLC, do I have to register as a foreign LLC in the state that borders mine?

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If I am looking to start an domestic LLC, do I have to register as a foreign LLC in the state that borders mine?

I am starting a business that does not require office space, and we will be selling a service on location.

Asked on November 20, 2014 under Business Law, Illinois

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You only have to register as a foreign corporation if you have operations in or conduct business in the other state. That means more than just having customers from the other state: it means specifically advertising in or targeting that state and its residents; have a sales rep or branch office there; performing work in the other state;  etc. If people from the other state cross the border to your state to buy your goods or services, that does not require registeration.


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