Business is booming, and you’re looking to expand. You’ve got your eye on Cincinnati, but what does it take to set up shop across state lines?
If you’re looking to cross the river and expand into Ohio’s steady economy, you’ll need to file as a foreign corporation. This means your limited liability company primarily resides in Kentucky, but you want to increase your reach and officially set up shop to the north. This registration will give you the rights and responsibilities of operating a business in Ohio.
Does not apply
Simply conducting business with customers from Ohio doesn’t necessarily mean you need to apply for registration. If your company only operates in Kentucky with some overflow across the border, you may not need to worry about the process. But if you’re doing more than dipping your toes in the Ohio River, you’ll want to register before fines and back taxes make things harder.
Traveling for business
General guidelines are used to determine whether you need to qualify as a foreign corporation. Some common dealings across the border will require registration:
- Running operations, warehouses or offices
- Operating stores, distributors or sales representatives
- Applying for a business license
- Holding in-person meetings
- Paying payroll taxes to Ohio
Some pain for more gain
You will be responsible for paying taxes on any profits made in the state of Ohio, as well as pay an annual fee to remain registered in the state. You will also need to follow the rules and regulations like you were based there.
A foreigner facing fees
If you perform qualifying business without registration, you’ll be looking at possible repercussions. You could be held responsible for taxes dating back to the beginning of your infractions, and interest-laden fines on top of standard certification fees.
Setting up your business to operate in another state can be a complicated procedure, but it is the price of growth. Taking the time to follow regulations can save you a lot of time and money in the long run and get your business poised to ford the river.