Frequently Asked Questions

What happens when a corporation wants to do business in another state?

When a corporation wants to do business in another state, it is typically required to incorporate as a foreign entity in that state. This is because corporations are governed by state laws, and these laws can vary from state to state. The corporation is recognized as a separate legal entity from its owners, and it can independently conduct business functions such as entering contracts and applying for loans. However, it's important to note that certain industries, like public transportation and telecommunications, are subject to federal laws, licensing, and regulations. Therefore, corporations must also adhere to federal laws such as the Securities Act of 1933, which governs the issue and sale of corporate securities. Given the complexity of state and federal laws, corporations often seek the assistance of corporate lawyers. These professionals can help with tasks such as creating articles of association that adhere to federal guidelines, ensuring corporate law compliance, and advising on changes in laws that affect the business. Moreover, corporations must also consider various areas within corporate law, including business formation laws, consumer protection laws, contract laws, employment and hiring laws, environmental laws, intellectual property laws, laws governing licenses and permits, and zoning laws.