Doing Business in Florida as a Foreign Corporation
People from all over the world form Delaware LLCs and Delaware corporations even though they operate their companies from their home state or country. Delaware has been recognized as having the strongest corporate law structure, and the advantages of forming your business in Delaware are extensive.
But what do you do if you have a company doing business in Florida as a foreign corporation?
Harvard Business Services, Inc. can help you take advantage of our state's corporate law structure by setting up a Delaware corporation doing business in Florida. If you are operating a Delaware corporation in Florida, your corporation will be domestic to Delaware but considered a foreign corporation doing business in Florida. People initially form a Delaware corporation and then register as a foreign entity in Florida (as the same business).
This process is called Foreign Qualification. This is the manner in which Florida grants you permission to operate your Delaware corporation there. Applying for Florida foreign qualification is a very important step that is sometimes forgotten, but if you fail to comply with Florida's local compliance regulations, you may be putting yourself and your company at risk.
Florida, like most states, has a specific set of requirements for Foreign Qualification: a state fee, an application process and a Certificate of Good Standing from Delaware. The Certificate of Good Standing can be no more than 90 days old.
The state also requires that you have a Florida Registered Agent which will be required to sign the application. A Director or officer will also have to sign the application on behalf of the corporation. The document Florida returns to you is called a Certificate of Authority. The Florida Certificate of Authority is often used to obtain a business license, open a bank account or file a DBA in Florida.
Please keep in mind that applications and paperwork filed in Florida will be on the public record, unlike in Delaware. However, county filing and newspaper publication is not required, unless specifically mandated by the county of the Registered Agent.
Once your business is registered in Florida as a foreign corporation, you will be required to file an annual report. The cost of the annual report is $150, and is due by May 1 of the following year. Often, your Registered Agent will forward you the notice approximately 60 days before the due date. Please note that a Delaware corporation will still be responsible for Delaware Franchise Taxes as well, which are due by March 1.
There are countless businesses that have been formed in Delaware for the sole purpose of doing business in Florida and other U.S. states. We are specialists in Foreign Qualification, and we register companies in Florida, as well as other states, every day. Apply for our Florida Registered Agent service and we can help you prepare the application, obtain a Certificate of Good Standing from Delaware and file all the necessary documents in Florida.
Generally, we can obtain your Certificate of Authority in about two business days. We are also able to act as your Registered Agent in Florida. For more information, or to register your Delaware corporation in Florida and start doing business in Florida, please call 1-800-345-2677, Ext. 6130.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.
More By Devin Scott
There are 16 comments left for Doing Business in Florida as a Foreign Corporation
George said: Monday, December 19, 2016If a domestic Delaware corp does its foreign qualification in Florida with you as registered agent in both locals, does the member's name show up in the Florida Public Records? How much to do both and how fast to have Certificate of Authority in hand this time of year?
HBS Staff replied: Tuesday, December 20, 2016George: Here is the link to the Florida Foreign Qualification process: http://form.sunbiz.org/pdf/cr2e007.pdf
Your principal office needs to be listed, as well as the names and addresses of all directors and officers.
The cost for us to prepare the document, pay the Florida fee and obtain your company's Certificate of Good Standing from Delaware (which must accompany the application) is $358. The entire process should take a couple of business days. Feel free to call us at 1-800-345-2677 for assistance or if you have further questions.