Foreign Qualification (conducting nonprofit business outside of your home state)

Christian Shaeffer Exempt Non-Profit Organizations, Uncategorized Leave a Comment

Qualification Process – to do business in state which is outside of incorporated state.

1. State level certificate of authority form. Usually filed with Secretary of State office.
a. The form usually requires the basic info of the nonprofit entity – name, address, directors and officer names, purpose/mission, and certificate of good standing from home state.
b. Filing fee usually required

2. Charity Registration – most states require nonprofit organizations to register if they intend to solicit donations of any kind in that state. Usually filed with state attorney general office or Secretary of State.
a. Form may need to be renewed yearly
b. The form usually requires the same info as above, with the addition of details concerning solicitation methods planned.
c. For larger entities, yearly audits are sometimes required.
d. A Unified Registration Statement for Charitable Organizations may be accepted by most states.

3. Initial and Annual reports concerning actual business operations and results may be required by some states. These requirements will be determined upon filing initial state level certificate of authority form.

4. If the nonprofit plans to hire employees in a new state, some additional requirements include:
a. Registering employees with Department of labor and Department of revenue
b. Registering for state unemployment insurance and work compensation.

5. Other requirements include filing for state sales tax exemption forms if applicable. Additional general business and liability insurance, and industry specific (food) licensing and registration depending operations.

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