You’re expanding to new states.
But you don’t know when you need to register. You don’t know which states require filings. You don’t know what triggers registration.
This map shows you exactly when and where.
Physical presence triggers. Employee triggers. Revenue triggers. State-by-state requirements.
This guide shows you the map.
When to register. Where to register. How to register. What triggers apply.
Read this. Understand the triggers. Register correctly.
Key Takeaways
- Physical presence triggers registration—having an office, warehouse, or regular business location in a state requires foreign qualification
- Employees trigger registration—having employees working in a state (even remote) can require foreign qualification depending on the state
- Revenue thresholds vary by state—some states require registration based on revenue amounts, others don't have revenue thresholds
- Each state has different rules—what triggers registration in one state may not trigger it in another, so check each state individually
- Failure to register can result in penalties—operating without proper registration can lead to fines, back taxes, and legal issues
Table of Contents
Why Triggers Matter
Triggers determine when you must register.
What happens if you don’t understand triggers:
- Register when you don’t need to
- Don’t register when you should
- Face penalties and fines
- Legal issues
What happens if you understand triggers:
- Register only when required
- Avoid penalties
- Stay compliant
- Operate legally
The reality: Understanding triggers prevents costly mistakes.
Trigger 1: Physical Presence
What It Means:
- Office or business location
- Warehouse or storage facility
- Regular business operations
- Physical business presence
When It Triggers:
- Most states require registration
- Physical presence is clear trigger
- No revenue threshold needed
- Immediate requirement
Examples:
- Office in another state
- Warehouse in another state
- Storefront in another state
- Regular business location
Pro tip: Physical presence is the clearest trigger. If you have a physical location, you likely need to register. See our foreign qualification guide for details.
Trigger 2: Employees
What It Means:
- Employees working in state
- Remote employees in state
- Contractors working in state
- Regular employee presence
When It Triggers:
- Varies by state
- Some states require registration
- Others have thresholds
- Check state-specific rules
Examples:
- Employee working from home in another state
- Salesperson regularly in another state
- Contractor working in another state
- Regular employee presence
Pro tip: Employee triggers vary significantly by state. Some states require registration immediately, others have thresholds. Check each state’s rules.
Trigger 3: Revenue
What It Means:
- Revenue from state
- Sales in state
- Business income from state
- Regular revenue from state
When It Triggers:
- Varies by state
- Some states have revenue thresholds
- Others require registration immediately
- Check state-specific rules
Examples:
- Significant sales in another state
- Regular revenue from state
- Business income from state
- Revenue above threshold
Pro tip: Revenue thresholds vary by state. Some states have clear thresholds, others don’t. Check each state’s specific rules.
State-by-State Map
Use this map to understand state-specific triggers:
States with Physical Presence Trigger
Most states require registration if you have:
- Physical office or location
- Warehouse or storage
- Regular business operations
- Physical presence
Examples: California, New York, Texas, Florida, Illinois
Pro tip: Physical presence is the most common trigger. Most states require registration if you have any physical presence.
States with Employee Triggers
Some states require registration if you have:
- Employees working in state
- Regular employee presence
- Employee thresholds
Examples: Varies by state - check specific rules
Pro tip: Employee triggers vary significantly. Some states require registration immediately, others have thresholds or exemptions.
States with Revenue Thresholds
Some states have revenue thresholds:
- California: $500,000+ in sales
- New York: Varies by business type
- Texas: Varies by business type
- Other states: Check specific rules
Pro tip: Revenue thresholds vary by state and business type. Check each state’s specific requirements.
States with No Clear Thresholds
Some states require registration based on:
- “Doing business” definition
- Regular business operations
- Case-by-case determination
Examples: Many states use “doing business” tests
Pro tip: When in doubt, consult with a professional. “Doing business” definitions can be vague.
How to Register
Use this process to register correctly:
Step 1: Assess Your Triggers
What to do:
- Review physical presence
- Review employee presence
- Review revenue levels
- Check state-specific rules
Why it matters: Understanding triggers determines if you need to register.
Step 2: Identify States Requiring Registration
What to do:
- List all states where you have triggers
- Check state-specific requirements
- Determine registration needs
- Prioritize by risk
Why it matters: Not all states require registration for the same triggers.
Step 3: File Foreign Qualification
What to do:
- File foreign qualification in each state
- Pay required fees
- Appoint registered agent
- Maintain compliance
Why it matters: Proper registration keeps you compliant.
Pro tip: Foreign qualification is required in each state where you have triggers. See our foreign qualification guide for the process.
Your Next Steps
Understand the triggers. Register correctly. Stay compliant.
This Week:
- Review this guide
- Assess your current triggers
- Identify states requiring registration
- Plan your registration
This Month:
- File foreign qualification where needed
- Set up registered agents
- Maintain compliance
- Monitor for new triggers
Going Forward:
- Monitor your triggers regularly
- Register in new states as needed
- Maintain compliance in all states
- Review triggers annually
Need help? Check out our foreign qualification guide for the registration process, our expansion decision guide for choosing structure, and our multi-state compliance guide for staying organized.
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Sources & Additional Information
This guide provides general information about multi-state registration triggers. Specific requirements vary by state and situation.
For foreign qualification process, see our Foreign Qualification Guide.
For expansion decisions, see our Expansion Decision Guide.
For multi-state compliance, see our Multi-State Compliance Guide.
Consult with legal professionals for advice specific to your situation and states.
