Foreign qualification is the process by which a business formed in one state registers for authority to conduct business in another state. In this context, “foreign” usually means out-of-state, not outside the United States.

Foreign qualification does not mean the business is foreign to the United States. In this context, it generally means an entity formed in one state is registering for authority to conduct business in a different state. The business normally keeps its original formation state while taking on additional filing, registered agent, tax, and compliance obligations in the new state.