QUESTION
Does a legal LLC in one state, have full faith and credit in another state? Or is something else required?
Asked on Feb 14th, 2021 on Business Law - Michigan
More details to this question:
We currently have an LLC in Ohio, and trying to conduct business and have a new office in Michigan. We are a small and new company so we don’t know everything, we just wanna know if we have todo something before we can conduct business and open a new branch office in Michigan.
1 ANSWER
An LLC in one State is recognized by other States. However, if you are "transacting business" in another State, where you have a physical office/store presence in the other State, the LLC will need to register with the the Secretary of State of the other State as a foreign LLC. If you have an on-line business that ships into another State, you will most likely not be required to register as foreign LLC; however, you would be subject to the sales tax. If an LLC buys property in another state, most likely you will not be required to register as a foreign corporation, since the LLC is not "transacting business" in the other state.
Answered on Feb 15th, 2021 at 9:47 AM