Hi,
I currently run a sole proprietorship providing training services for a certain profession, and I plan to register as an LLC in the coming weeks.
Until now my business has been mostly within my home state, but I plan to offer training in other states as well, which would require me to travel to provide the training. Training typically takes place over a few hours over a single day.
I can't predict exactly how often I would have to travel to other states or exactly which states I would end up in, since it depends on who contacts me and I can provide the training anywhere. I don't have and don't expect to hire any employees and will not have any personal property in any other state.
I am wondering whether I will need to or should register as a foreign entity in the other states I travel to to provide training?
It seems like the costs and hassle could really add up as I could easily end up doing business in 10-15 states over the course of a year, though my revenue and profits are still quite small.
Is there any sort of line for how often I would have to do business in a certain state or how much I would need to earn in order to be required to register as a foreign entity?
Is my type of business one that would typically require me to register as a foreign entity if I did a substantial amount of business there, even considering that I don't employ anyone or own property in other states? What are the potential pitfalls if I don't register?
Thanks for your help! I've already learned a lot just browsing through the forum.
Bookmarks