Do I need to be registered to "transact business" in my home state?

Home FAQs Incorporate in Delaware Do I need to be registered to "transact business" in my home state?

Do I need to be registered to "transact business" in my home state?
2009.04.26

Your Delaware company is a domestic company in the state of Delaware. It is a foreign company in every other state or country. If you plan to staff offices in a state other than Delaware, with employees to conduct business directly with the public, we recommend that you register in the state in which you will "transact" business.

Registering in additional states is generally not necessary if you are a consultant; a one or two person or home based business or if you sell through independent distributors, manufacturer's representatives, wholesalers, retailers or through mail order or the Internet. More information on what constitutes "transacting business" can usually be found at the Secretary of State's office in each state.

If you decide to register your company within your home state, be advised that most states will require a certificate of good standing from the State of Delaware. You can either order this certificate as an add-on item when you purchase your formation package, or separately later, if you find that it will be needed.