When you first get your business up and running, expansion to states other than the one where you registered your business 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 entity. That does not mean that the company was formed in another country; 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 LLC in New York State.
Who Should File an Application for Authority?
In New York, there are two different types of LLC that need to complete an Application for Authority in order 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 and attach to it 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 LLC is a business comprised of licensed professionals who have come together to provide a service to clients, such as a therapists’ or dental office. Like other foreign LLCs, it must complete the Application for Authority and attach to it a copy of the Certificate of Good Standing. Professional services must also include a Certificate of Good Standing from the appropriate Appellate division or a Certificate of Authority from the New York State Department of Education.
New York State does not explain what qualifies as doing business 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 LLC, 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 $250 filing fee for foreign LLCs and a $200 filing fee for foreign professional service LLCs.
