Out-of-State Company Doing Business in California? Registration and Your Registered Agent

When registration is required, what it involves, and why you'll need a California registered agent either way.

The short version

If your corporation or LLC was formed in another state but transacts business in California, the state generally expects you to register (often called foreign qualification), and registration requires a California agent for service of process.

Who can be the California registered agent for an out-of-state company?

California accepts an individual who lives in California and gives a physical California street address, or a corporation registered with the Secretary of State as a 1505 corporate agent. Corpgate, Inc. is a registered 1505 corporate agent, and many of our clients are out-of-state companies registered in California: $49 a year when you prepay three years ($147), or $79 a year. See plans.

When registration is required

California casts a wide net on "transacting intrastate business." Common triggers include an office, warehouse, or employees in California and repeated in-state transactions. Registration and taxes use different tests: the Franchise Tax Board's sales, property and payroll thresholds decide whether you owe California tax, not whether you must register with the Secretary of State, and a company can be caught by either test without the other. Whether your specific activity crosses the line is a legal and tax question worth an hour of professional advice; guessing wrong in either direction costs more.

What registering involves

How to register, step by step

The cost of skipping it

An unregistered company doing California business faces penalties and back obligations, and there's a sharp procedural edge: it cannot bring a lawsuit in California courts on claims from its California business until it registers, though it can still defend a lawsuit brought against it. You can be sued here while being unable to sue back on those claims. An out-of-state corporation that transacts business here without registering can also face a penalty of $20 for each day.

Why out-of-state companies choose Corpgate, Inc.

Serving out-of-state corporations and LLCs registering in California, and switchers from pricier agents: how to change your California agent.

Foreign qualification questions

What counts as "doing business" in California?

California interprets it broadly: repeated transactions in the state and employees or offices here can trigger it. The Franchise Tax Board's revenue, property and payroll thresholds are a separate tax test and do not by themselves decide whether you must register with the Secretary of State. The specifics matter, so this is a question for your attorney or tax professional; the practical point is that many out-of-state companies with real California activity need to register.

Does my out-of-state company need a California registered agent?

Yes. Registering to transact business in California requires designating and continuously maintaining an agent for service of process located in California, exactly like a domestic entity.

Can my home-state registered agent cover California?

Only if it also qualifies in California. California requires an agent for service of process who is either an individual California resident or a corporation that holds a California section 1505 certificate. A company that is your agent in Delaware or Nevada can serve in California only if it also holds that certificate; otherwise you need a California agent like Corpgate, Inc.

What happens if we do business in California without registering?

Consequences can include penalties, back fees and taxes, and the inability to bring a lawsuit in California courts on claims from its California business until the entity registers. An unregistered company can be sued in California and can still defend itself; it just can't bring those claims.

Is the process different for corporations and LLCs?

The forms differ but the shape is the same: register with the Secretary of State, designate a California agent, and keep a Statement of Information current going forward.

What form does an out-of-state LLC file in California?

Form LLC-5, the Application to Register a Foreign Limited Liability Company, filed online on bizfile Online. The state fee is $70, and the state asks for a certificate of good standing from the LLC's home state issued within the past six months. The form names the LLC's California agent for service of process.

How much does it cost to register an out-of-state company in California?

The Secretary of State's filing fee is $70 for an LLC (Form LLC-5) and $100 for a stock corporation ($30 for a nonprofit corporation) filing the Statement and Designation by Foreign Corporation. You also need a California agent for service of process: with Corpgate, Inc., that is $49 a year when you prepay three years ($147), or $79 a year. Franchise Tax Board taxes, including an annual minimum franchise tax, are separate.

Do owners who live outside the US need a California registered agent?

Yes. A corporation or LLC registered in California needs a California agent no matter where its owners live. Corpgate, Inc. serves companies whose owners live outside the US: documents are scanned and emailed, and hard copies are mailed to a US address only.

This guide is general information, not legal advice. Filing requirements and fees can change; verify current details at sos.ca.gov or with a licensed attorney.

Related pages: Registered agent for California LLCs · Registered agent for California corporations · California agent for service of process · How to change your registered agent

More guides: What does an agent do? · What does an agent cost? · What happens without one? · Statement of Information guide · The 1505 corporate agent · Statutory agent vs registered agent · How service of process works

Need a California registered agent?

Corpgate, Inc. has been a California registered agent since 2008. Documents are scanned and emailed promptly, with hard copies forwarded.

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Checkout requires a US mailing address. Don't have one? Email support@corpgate.com and we'll set you up. After checkout, you get an email with simple instructions to name Corpgate, Inc. as your agent. Questions first? Call (888) 49-2-CORP or see how it works on our home page.