Doing Business in Other States…the Right Way.
Why Registering Your Company is vitally important.
As Businesses grow and expand, many times those expansions will lead them across state lines. It is important to understand the legal implications for such a decision. Here are a few recommendations on what to think about when expanding your business:
1) Make sure that your company is first registered in your home state. A good business law attorney can help you make sure you have the type of entity (e.g. Corporation, LLC, LP, etc.) that best fits your needs.
2) Register your company with the new state you are expanding into.
3) Talk with a CPA about the tax implications for your move. You’ll want to ask about whether or not you’ll need to charge sales tax in the new state (which does not always apply for web-based businesses), whether you have to remit Use Taxes, and whether you will need to file a State Franchise Tax Return in your expansion site state.
If you should have any questions about this issue or another Business Law issue, please give our Dallas Business Law Attorneys a call at 214-236-2712.