All businesses are born in one of the 50 states by filing a birth certificate of sorts. A birth certificate is filed with the state after a person is born. A certificate of formation is filed with the state before the business entity is born. A registered agent is required by many states to act as the representative between the department of state and your company. The following forms are used to create 3 common business entities with states:

1) Corporations are created with Articles of Incorporation

2) Limited Partnerships (LP's) are created with a Certificate of Limited Partnership

3) Limited Liability Companies (LLC's) are created with a Certificate of Organization

Analogy Summary

a) A person is born then the certificate is filed

b) A certificate is filed then the business is born

Multiple States

Most companies do business in more than one state which requires a Foreign Certificate of Authority. For example, if Brand New Corporation (BNC) is formed in Delaware and does business in Maryland, Pennsylvania and New Jersey, then it has to file a Certificate of Authority with each of the three new states.

Selling Stuff

Businesses sell products or services which can be tangible or intangible. Sales can take place in a single state, multiple states or internationally. When a business starts selling stuff in another state it's usually required to supply a new business address and register in the new state. Large companies expand into other states open a new office or store fronts and get a new business address by default. Brand New Corporation has an office in one state and delivers office supplies in surrounding states without having a location in those states. 

The Address Section

Almost every form used in business has an address section and the Foreign Certificate of Authority is no different. How do you get a required address in a state where you have no office, warehouse or store? There are several secrets weapons for getting the address your business needs. Many states require foreign entities to get a registered agent who supplies a stealth address for that purpose. 

Registered Agent

Registered agent services provide one main function, an address for service of process. A business uses the service so others know where to sue them. If a corporation could hide out in the shadows it would slow down the legal process because injured customers wouldn't know where to file a suit. The registered office address on Certificates of Authority and Certificates of Formation are publically searchable providing transparency between a corporation and its stakeholders. The summary of doing business in a new state follows:

1) Register to do business in a new state (file Certificate of Authority)

2) Supply a physical business address

3) Registered agent may or may not be required

4) Always use a registered agent for best practice 

It Depends

Some states like Delaware require a registered agent whether or not a company has a physical presence in the state. Conversely, Pennsylvania doesn't require a registered agent if the company has an office. For example, Brand New Corporation opens an office in Philadelphia and adds the new address to the Foreign Certificate of Authority. If BNC moves to another office, it has to change letterhead and file new paperwork with the department of state. 

Golden Rule Strikes Again

A registered agent should be used in every state to create a permanent address of sorts. The cost of changing addresses can be staggering so apply the golden rule of addresses to make your business address as permanent as possible. It goes without saying that a registered agent has to be a virtual address otherwise its a paperless office violation. 

Virtual Registered Agent in 50 States is available at Northwest Registered Agent where you can also file Certificates of Formation and Certificates of Authority and login to your virtual mailbox for authority related virtual mail only. (This is not a substiute for a virtual business address) 

Address Carelessness™

You have to guard your addresses like your guard your cash. Business owners and entrepreneurs don't understand an address is a presumption for existence and a common thread that weaves you and your stakeholders together. Address Management should be a business strategy handled by a responsible party even in a microbusiness of one. Invisible Expenses™ start creeping in with Address Carelessness™. Let the experts handle it for you. Get The Ultimate Paperless Back Office™ by invizibiz.