Foreign qualification question

[tpham10978]

Hi all,

My partner and I am starting up a payroll processing company (home based) and we have registered our LLC in the state of GA (my partner's home address) and I am in the state of NJ. Now, if we were to acquire clients located in other states, how do we decide whether to foreign qualify our business in each states that our clients are located in? And how do we find out what is considered transacting a business in each states? Thank you!

[GlobalWealth]

this is somewhat of a gray area. what you need to find out is if you establish nexus in each state you transact business in. some things that constitute nexus are; employees or contractors in that state, physical presence in that state, significant revenue from that state, any registered land, equipment or vehicles in that state. you may have nexus in NJ since a member is located there, so you may need to register in the state to do business.