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Asker
Posted almost 3 years ago.

Do I have to register as a Foreign LLC before I can get a business license?

Kenneth Allyn Sprang
Kenneth Allyn Sprang, Business Attorney - Washington, DC
Posted almost 3 years ago.

Mr. Jacobson's point is well taken. I infer that you have already created the out of state entity. My preference always runs to DE. However, given the $800 annual fee charged by the Franchise Tax Board in CA to in state and foreign organizations, with CA companies I usually suggest organizing in CA absent a good reason not to, e.g., company is international, plans to go public, etc.

Kenneth Allyn Sprang
Kenneth Allyn Sprang, Business Attorney - Washington, DC
Posted almost 3 years ago.

You can apply for the license, but under the Code you need to register before beginning to do business. In my view, if you are going to have to register in any event because you have an out of state company and you plan to register it in CA, why not just do it now. Again, the filing fee is quite modest and the registration is a simple task.

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Asker
Posted almost 3 years ago.

Great, thanks for you answers. And the reason for forming in another state is becauseI will not be living in CA by the end of this year, and didn't want to continue to be formed in CA (and having to pay the enormous annual franchise tax) and deal with re-forming once I moved - so I formed in a neutral location. Thanks again.

Taleed Rashad El-Sabawi
Taleed Rashad El-Sabawi, Business Attorney - San Diego, CA
Posted almost 3 years ago.

The steps are, indeed, pretty simple to register. You will have to provide a Certificate of Good Standing for your LLC from the state that your entity is registered in, with your registration application.

Best,
Taleed El-Sabawi
Kersey and Sabawi, PC
www.kerseysabawi.com