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My business is a services based business and is based in Arizona.

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Our clients are not in...
My business is a services based business and is based in Arizona. Our clients are not in the state but in California and Alabama. While most of our services are performed remotely from our office or from the remote locations of our contractors, we do, at times visit these clients and perform a portion of the contracted services on location or within the respective state. That being said, above and beyond our business license here in Arizona, are we required to have any additional business licenses, permits, authority or the like in order to conduct business on location with the clients? If so explain in detail.
Submitted: 2 years ago.Category: Business Law
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6/12/2015
Business Lawyer: Law Educator, Esq., Attorney replied 2 years ago
Law Educator, Esq.
Category: Business Law
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Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
If you do not have a continuous physical presence doing business in either state, you would not have to register there.
It is only if you are providing contracting services primarily in CA or AL and have a physical presence there, then you are supposed to be registered as a foreign business entity conducting business in those states. The reason for this is because you are supposed to be registered in any state where you are primarily targeting business and you are supposed to pay income and sales taxes and unemployment/workers compensation on the employees in that state when they are working physically in that state.
For example, CA Code 17708.03, states, "(a) A foreign limited liability company that enters into repeated and successive transactions of business in this state, other than in interstate or foreign commerce, is considered to be transacting intrastate business in this state within the meaning of this article."
So if you are entering into successive and repeated transactions in CA and AL, you should be registered as a foreign LLC doing business in CA and you would do so by filing with the AL and CA secretary of states.
However, if all of your business is remote and only going to CA or AL infrequently physically to do work there, you really do not nee to be registered there because you are engaged in "interstate" commerce and not repeatedly conducting physical business in the states.
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