What is Michigan Corporation Foreign Qualification
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You want to do business in Michigan but are registered as a Domestic Corporation in another state.
In order to legally conduct business in the state of Michigan you must register with the Michigan Secretary of State as
a Foreign Corporation.
The process of registering as a Foreign Corporation in Michigan is called Michigan Corporation Foreign Qualification.
The process of Michigan Corporation Foreign Qualification is similar to the process of forming a Domestic Corporation in Michigan.
Your original formation documents (usually called Articles of Incorporation) and Corporate Bylaws apply to your Michigan Foreign Corporation.
The Board of Directors and Officers of your Domestic Corporation have the same roles in the Michigan Foreign Corporation.
Specific requirements to qualify as a Foreign Corporation in Michigan are explained below.
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Once you have made the decision to Qualify as a Foreign Corporation in Michigan,
a Michigan lawyer can file your documents and act as a middle man for a few hundred dollars an hour;
or you can use an online service provider like PCF to perform these services.
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Put the money you save with PCF right where it belongs - into your new
Michigan Foreign Corporation
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What do I have to do to Qualify as a Foreign Corporation in Michigan
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1. Prove that you are registered in a state other than Michigan as a Domestic Corporation
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- PCF can get your Certificate of Existence as quickly as possible from any state
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In order to register as a Foreign Corporation in the state of Michigan, you must first prove that you are registered in another state as a
Domestic Corporation.
You usually prove this with a Certificate of Good Standing, sometimes referred to as a Certificate of Existence or a Certificate of Fact, from the
state in which you are registered as a Domestic Corporation.
Cost of a Good Standing Certificate for your Domestic Corporation varies from state to state.
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2. Choose a name for your Michigan Foreign Corporation
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- PCF will check to make sure that your Michigan Foreign Corporation name is available, conforms to state of Michigan
Corporation naming regulations, and will reserve the Foreign Corporation name with the Michigan Secretary of State.
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Your Michigan Foreign Corporation name can identify the type of products and services your business will provide;
or it may be the name of the founder; or it can be a combination of the two or something else.
In any case, the Michigan Foreign Corporation name that you choose must be distinguishable from the name of any other registered Michigan Corporation or other
business entity and the name must also be different from any reserved names on record with the state of Michigan.
Your Michigan Foreign Corporation name must not imply that it was formed for a purpose other than that stated in the
Articles of Incorporation for your Domestic Corporation
and your Michigan Foreign Corporation name must not be a name that is likely to mislead the public.
The name of a Michigan Corporate must include one of these words: "Corporation", "Company", "Incorporated" or "Limited" or one of these abbreviations: "Corp."., "Co.", "Inc.", or "Ltd."
A Michigan Corporation may transact business under an assumed name that complies with the state of Michigan Corporation naming conventions.
This requires filing a certificate of assumed name with the Michigan Secretary of State, along with the appropriate filing fee.
It's important to choose a good name for your Michigan Foreign Corporation because if you want to change it after you qualify you
will have to file amended documents with the Michigan Secretary of State (and pay a fee).
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3. Select an official address and a Registered Agent for your Michigan Foreign Corporation
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- PCF can act as the official Registered Agent for your Michigan Foreign Corporation.
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Every Michigan Foreign Corporation must have an address that is physically located in the state of Michigan.
This address is "registered" with the Michigan Secretary of State.
The Registered Address is where official and legal correspondence can be delivered.
The individual or company that is registered with the state of Michigan to receive all correspondence on behalf of the Michigan
Foreign Corporation is called a "Registered Agent".
You may act as your own Registered Agent, however, many Michigan Foreign Corporations hire a Registered Agent because they don't have a physical
address within the state of Michigan or to provide a distinct level of privacy.
PCF provides Registered Agent services in Michigan as well as any other state.
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4. File Registration Documents with the Michigan Secretary of State
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PCF can compile Registration Documents that are specific to your Michigan business and file them with
the Michigan Secretary of State.
Should the need arise, PCF can also draft and file amendments to your Registration Documents.
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In order to Qualify as a Foreign Corporation in Michigan you must file Registration Documents with the Michigan Secretary of State.
The Registration Documents must include certain specific information about your Michigan business.
If the Registration Documents do not conform exactly to state of Michigan requirements they will be rejected.
You may subsequently amend the Registration Documents for your Michigan Foreign Corporation but you will have to pay a fee to
the state of Michigan in order to make the changes official.
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What do I have to do after I form my Michigan Foreign Corporation
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1. Obtain Business Licenses from the cities and counties in which you plan to do business
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The business licenses or permits that are required for your Michigan Foreign Corporation vary depending on your specific business
activities and the Michigan locations in which you want to conduct business.
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2. File the required reports for your Michigan Foreign Corporation
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- PCF can file your Initial report as well as your Annual Report each year by the due.
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Every Michigan Corporation must file an annual report with the Michigan Secretary of State each year.
Also, within four months of the end of the fiscal year, each Michigan Corporation must distribute to the Shareholders a financial report including the Michigan Corporation's year-end balance sheet and state of income.
The Annual Report includes basic information about your Michigan Foreign Corporation including information on your Board of Directors and Officers.
Failure to submit a properly completed Michigan Annual Report to the Michigan Secretary of State on or before the
due date may subject the Michigan Foreign Corporation to being administratively dissolved in the state of Michigan or having its authority to
transact business in the state of Michigan revoked by the Michigan Secretary of State.
Penalties may accrue if you fail to file any Michigan Corporation Annual Report to the Michigan Secretary of State by the due date.
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3. Keep proper records of your Michigan Foreign Corporation on file
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Keep the following records on file and available at the principal business office of your Michigan Foreign Corporation:
- Names and addresses of all Directors and Officers of the Michigan Foreign Corporation
- Articles of Incorporation and any Amendments to them
- Corporate Bylaws and any Amendments to them
- List of current shareholders of the Foreign Michigan Corporation.
If shareholders change, keep a record of old shareholders and how stock was transferred.
- Minutes of all Meetings of Shareholders and Directors
- Copies of any Corporate Resolutions which have been adopted by the Michigan Foreign Corporation
- Copies of all tax returns and Annual Reports for the Michigan Foreign Corporation for the last 3 years
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4. Pay your taxes to the state of Michigan
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Foreign Corporations that either do business in the state of Michigan or that derive income from sources within the state of Michigan are subject to Michigan
tax laws.
If you are engaged in intrastate business and derive income from other states besides Michigan, you must allocate the amount of income derived
from the state of Michigan in order to determine your Michigan state taxes.
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