Corporate registrations are often misunderstood and confusing. Some states require proof of a corporate registration and some do not. Here is some information to help clear things up.
What is a corporate registration?
A corporate registration is the process of registering a company with the Secretary of State’s office in order for the company (corporations, LLCs and LLPs) to do business in the state.
The corporation must register in the home state when the entity is first established.
A “foreign” corporate registration is the process of registering a company in a state other than the company’s home state. The foreign corporation will receive a document upon registering the company called a “Certificate of Authority” or COA.
Why is a corporate registration needed in the insurance licensing process?
Many states require proof of corporate registration when applying for a nonresident business entity license. A copy of the Certificate of Authority is submitted with the nonresident business entity application. A corporate registration helps the Secretary of State and the insurance department monitor who is doing business in their state. It also helps them to monitor whether the business entity is in good standing so they can protect consumers.
Check back next week for more information regarding corporate registrations….
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