When you first get your business up and running, expansion to states might be the last thing on your mind.
Fast forward several years, though, and you are ready to launch franchises of your company across an entire region of the country.
When a company seeks to operate in a state other than the one where members originally registered it, it becomes a foreign corporation.
This does not mean that the business was formed in another country. Instead, it simply means that the company originated in another state.
For example, the New York Application for Authority is the document you fill out to get permission to operate your foreign limited liability company (LLC) in New York State.
Who Should File an Application for Authority?
In New York, there are two different types of limited liability companies that need to complete an Application for Authority to expand their enterprise to New York State.
Foreign Limited Liability Companies
To apply for authority to do business in New York, the official who maintains the records of the foreign LLC must complete an Application of Authority. This document must be attached to a copy of the Certificate of Existence (otherwise known as the Certificate of Good Standing) for the LLC that is dated within one year.
Foreign Professional Service Limited Liability Companies
A foreign professional service limited liability company is a business composed of licensed professionals who have come together to provide a service to clients, such as a therapists’ or dental office.
Like other foreign limited liability companies, professional services must complete the Application for Authority and attach to it a copy of the Certificate of Good Standing.
Professional services must include:
- Certified copies of their Certificate of Good Standing from the appropriate Appellate division and/or
- A Certificate of Authority from the New York State Department of Education.
Many companies have to appoint a registered agent service for the filing to be approved. This is a person or entity that receives government notices on behalf of your company.
New York State does not have an explicit definition of what “doing business” means in New York state. Instead, it refers companies to an opinion of counsel called “Doing Business” in New York: An Introduction to Qualification.
The New York Division of Corporations also cautions that some words and phrases cannot be included in the name of the limited liability company, unless one has “complied with the restriction” expressed in another statute.
How Do You File for a New York Application of Authority?
The application goes through the New York Department of State, Division of Corporations. There is a $225 filing fee for foreign LLCs and a $200 filing fee for foreign professional service LLCs.
