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  1. #1
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    Default What are the Consequences of Not Registering a Foreign Corporation or LLC

    If you form a corporation or LLC in another state, but do business through that corporation or LLC in California, what are the possible consequences of failing to register the foreign entity with the State of California?

  2. #2
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    Sep 2005
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    Default Re: What are the Consequences of Not Registering a Foreign Corporation or LLC

    If the entity has sufficient contact with California that it is legally obligated to register, the consequences of its failure to do so will depend on the facts. Although the failure to register the foreign entity does not automatically eliminate the corporate shield, the failure to follow state laws and regulations can be a factor that could lead a court to pierce the corporate veil and hold its owners liable for its debts and obligations. Failure to register could also result in complications if the entity is sued in California, or if the entity had a legal claim that it wanted to pursue through the California courts, as it might find itself barred from either appearing or defending due to its failure to register.

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