News

Fines for Non-Compliance with Qualification Requirements: 2015 Basketball Edition

By Sandra B. Feldman, Publications Attorney for CT Corporation.

Corporations and LLCs that transact business in states outside of their states of organization are required to qualify in those so called “foreign” states.  If they conduct business within the foreign states without having qualified they may be subject to fines.  
 
Say, for example, your company does business in the states that are home to the remaining four teams in the NCAA men’s basketball tournament.  Here’s what your company could be fined if it didn’t qualify to do business first.
 
  • Kentucky - $2 for each day your corporation or LLC did business without authority.
  • Michigan – not less than $100 or more than $1,000 for each month your corporation or LLC did business without authority up to a maximum of $10,000.
  • Wisconsin – 50% of the amount your company would have paid to qualify or $5,000, whichever is less.
  • North Carolina - $10 for each day, but not to exceed $1,000 for each year or part thereof, your corporation or LLC did business without authority.
 
Contact your CT rep for information on qualifying in those states, or any other state – even those with teams that didn’t make it this year.

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