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John, Employment Lawyer
Category: Employment Law
Satisfied Customers: 5630
Experience:  Exclusively practice labor and employment law.
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Is our company, based in NY and incorporated in WA required

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Is our company, based in NY and incorporated in WA required to register to do business in a state where we place one employee who does consulting work for another company in that state but remains our employee?
Hi, thanks for submitting your question today. The answer is yes if you want to claim all the protections of incorporation in that state - the greatest of which is removal of personal liability for the owners of the company. Corporate law is totally a function of state laws. Thus, if your company is not incorporated (even if only as a foreign corp) in a state in which it has agents or property, then it risks not having the corporate protections in that state. So for example, if this employee makes some error costing the millions of dollars and the company is not incorporated in that state, then the customer could sue the the owners personally, because the entity (with its protections against owner liability) does not exist as far as state law goes.

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