If you own a business that was created outside of New York, then you need to register it if you want to do business here.
For our purposes, a “foreign” business is any business created outside of New York. That also includes businesses created in another state.
According to New York law, foreign businesses are required to register if they are “transacting business” in New York. While this term is not truly defined in the law, we can interpret that to mean that if you have a physical presence in New York, (an office, warehouse or store, for example) or have a sufficient connection (or “nexus”) with the state that would require your business to collect sales tax in the state, then you most likely must register your foreign business.
However, you are not transacting business in New York if your foreign business is defending a lawsuit, holding a meeting, or simply having a bank account within the state.
To register your foreign business in New York, you must file an Application for Authority with the NYS Department of State. While it is not necessary to do so, we recommend that you contact a New York attorney to handle this application for you, as there are different forms based upon what kind of foreign entity you are.
Should your foreign business fail to register and still does business in New York, then your business may not bring any lawsuit in a New York court, and may be liable to taxes to the State for revenue earned from doing business within it.
Therefore, it is advisable to register with New York State should you decide that your foreign business will be transacting business in the Empire State.
*Gene Berardelli may be contacted at: GeneBerardelli@ipglegal.com
Gene is a New York street-smart attorney with an extreme passion for success. Gene specializes in litigation, arbitration and general corporate law for New York-based and international clients. He, also, is the host of a popular New York talk radio program.
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