Glossary • Updated 2026
By Srikanta M.Reviewed against FTB / SOS sources: September 2026Methodology

Foreign Qualification

Registering an out-of-state entity to legally do business in another state.

In detail

California charges $70 plus the $800 annual franchise tax from the qualification year.

Requires a local registered agent and ongoing reports in both states.

Operating unregistered risks back taxes, penalties, and losing court access.

Where it matters

More definitions

Sources

  • Cal. Rev. & Tax Code; 8 Del. C.; Wyo. Stat. Title 17; FTB/SOS glossaries