New York has various characteristics that make it attractive to foreign businesses, including the state’s diversity, strategic location, potential for growth and stable economy. There is no question that these ventures can open significant opportunities and benefits. However, state law has provisions restricting foreign businesses from operating recklessly in New York. Depending on the circumstances, business expansions into the state come with different legal complexities.
Typically, foreign ventures can only start doing business in the state after obtaining the authority to do so. This requirement filed with the Department of State (DOS) allows foreign entities to operate like domestic businesses and corporations.
Foreign ventures that have never conducted business in the state must apply for authority, usually with a $225 filing fee. The process can vary based on the situation. Sometimes, the filing party must also provide consent from the tax commissioner to prove proper filing and payment of taxes before seeking authority. Unique circumstances can also bring about specific issues, often necessitating guidance from the relevant government agency.
Aside from foreign businesses, corporations outside the state could also need authority before operating in New York. The requirements could vary depending on the business’ details and structure, making navigating the process challenging.
Making legally sound business decisions
Venturing into new locations and markets can yield significant benefits but also have accompanying risks. Doing so recklessly could put the organization in a tough spot, especially if the expansion has legal issues.
Before planning these developments, seeking legal counsel can be helpful. Having experienced insight into what may happen next can address factors that may put the plan in jeopardy. Being aware of these risks can also help businesses prepare by implementing legal safeguards and meeting any requirements to prevent issues in the future.