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SOS vs DOR registration

Asked by: Kismet  — 3 October, 2012

We are GA corporation. We have multiple clients nationwide (almost 50 states). Do we have to register our business with Secretary of State in each state? We have applied Tax registration with Department of Revenue in each state. Is SOS registration different from DOR tax registration? Is SOS registration a must?

Answered by: admin  — 3 October, 2012

Kismet,

You would typically register with a Department of Revenue (or its equivalent) in states where you create nexus, and need to collect sales tax. Registration with Secretary of State (or its equivalent) is necessary when you establish more permanent physical presence in a state, for example by opening an office there.

I invite you to read this answer to a question dealing with nexus to better understand the difference. Not every state where you establish nexus necessarily requires you to register with SoS (this is also called “foreign qualification“), however some do.

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