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Registering to do business in multiple States
by Blairsco, Window Shopper
- Created: May 24, 2012, 5:55 pm
Hello. I'm new to this sort of thing so I hope I'm doing it right. I own a
business in the UK and have recently taken over the employees and customer
base of a US (Wisconsin) based Rep Agent. This Rep had 2 Administrative
employees in Wisconsin, a Technical Specialist who lives in Florida but
spends most of his time in China and Taiwan with the manufacturers, and 3
sales guys, one in Texas, one in North Carolina and one in Illinois. The
business represents the Asian manufacturers into major Global Electronic
Manufacturing companies, most of whom have their corporate headquarters and
design centres within Europe and USA, but the manufacturing is located in
Asia. The role is therefore mostly to promote the pcb manufacturer's product
and get their name on the AVL (Approved Vendor List), so that orders will
come from the purchasing departments out in the manufacturing locations, in
China, India, Mexico and other, low cost areas.
All the US employees work from their homes in the respective States. It has
been suggested that I set up a US based LLC, which will be a wholly owned
subsidiary of the UK company. The LLC will pay the US employees both a base
salary as well as commissions, based on the level of sales achieved through
the China and Taiwan factories to their respective customers' production
locations/sub-contractors.
I have been told that I will, at some significant cost need to register each
employee to do business in their respective States. This doesn't seem right.
It would almost be cheaper to fire them all and set up an office in one
State, then employ new people to work from that State and travel out to the
customers, located in numerous other States to provide the services we offer.
Can anyone advise me on the best, most cost effective way to set up this
business, please?
SBA Community

movemasters | Window Shopper | 6/6/2012 - 7:22 am
state where your company was formed or incorporated), you'll need to register
(also referred to as qualifying) your company in those states. If your
business has offices, employees or advertises in states outside of your
company's home state, chances are you'll need to qualify your company in that
state. Your company becomes qualified by obtaining something often called a
Certificate of Authority from the Secretary of State.
email_marketing | Performer | 6/4/2012 - 9:55 pm
to fire ongoing employees who know your customers unless they are just not
performing; that seems like a bad move, especially over tax or regulatory
reasons. They'll end up selling for one of your competitors.
angelb92001 | Window Shopper | 5/27/2012 - 6:22 pm
administrative offices are physically located, which sounds like Wisconsin in
your case. Just because your UK company bought out the US-based operation, it
should not affect the licensing and regulatory requirements that governed the
US-based business when it was run by the American company in Wisconsin. What
structure was the company operating under before? If the employees are not
manufacturing or selling a physical product in their respective states, and
are only providing a service (ie, tech services in the case of the Florida
person and sales reps in the case of the other 3 people), it doesn't sound as
if they need to be 'licensed' in their respective states. They will be
employees of the Wisconsin-based company who happen to work remotely. You can
always check with the Secretary of State's office in the respective states in
which your employees live, but if the only thing that has changed is business
ownership, then the rules that applied to the remote employees before should
still remain in effect. Hope that helps.
CorpGirl2012 | Window Shopper | 6/1/2012 - 12:07 pm
business is physically located and is operating business in that state. We
see many companies register their business in one state and have employees
work remotely all over the US. For example, the company I work for is an
online based company, with a physical location in California. Even though we
do business in all 50 states everyday, the only state we have a physical
presence in is California, therefore we are only registered as a California
corporation. I hope this information is helpful.
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