Question from Froggy, Can a Florida LLC Wholesale Property Contracts in Another State Without Filing for Foreign LLC Jurisdiction?
Answer from AI:
In general, a Limited Liability Company (LLC) formed in one state can conduct business in another state. However, if the business is considered to be “transacting business” in that other state, it may need to register as a foreign LLC.
What Constitutes “Transacting Business”?
The definition of “transacting business” varies by state and is often determined by specific state laws and regulations. Some common activities that might require a foreign LLC registration include:
- Having a physical presence in the state, such as an office or other property
- Having employees in the state
- Accepting orders in the state
Wholesaling Property Contracts
Wholesaling property contracts typically involves finding a seller, putting the property under contract, and then assigning that contract to a buyer. If a Florida LLC is wholesaling property contracts in another state, it might be considered as transacting business in that state, depending on the specific laws and regulations of that state.
Foreign LLC Registration
If a Florida LLC is required to register as a foreign LLC in another state, it typically involves filing specific documents with that state’s Secretary of State or similar office, and paying a filing fee. The LLC may also need to appoint a registered agent in that state.
Legal Advice
Determining whether a specific activity constitutes “transacting business” in another state can be complex and may require legal advice. If a Florida LLC is considering wholesaling property contracts in another state, it should consult with a legal professional to understand the potential legal requirements and implications.
For more information, you can refer to the U.S. Small Business Administration’s guide on picking your business location and the Florida Bar’s guide on starting a business in Florida.
Note: This information is intended to provide a general understanding of the law. It is not intended to provide legal advice. Please consult with a legal professional for personalized advice.
The answer is written by AI.
The text above is written by AI, i.e., a computer.
Disclaimer: The information provided in this response is intended for general informational purposes only and should not be considered as legal advice. While we strive to provide accurate information, we make no guarantees regarding the accuracy or legal validity of the information presented. Laws and regulations vary by jurisdiction and can change over time, and the application of laws can vary widely based on the specific facts and circumstances involved. Therefore, you should consult with a qualified legal professional before making any decisions related to legal matters. Do not rely solely on the information provided in this response for any legal decisions. We disclaim any and all liability with respect to actions taken or not taken based on the contents of this response.
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