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When “Doing Business” isn’t “Doing Business”

Scrawled question mark, symbolizing questions about the different meanings of "doing business"

Significant responsibilities or liabilities can depend on whether one is “doing business” in a state. As this post explains (principally referring to California law for examples), doing business” can mean three different things in three different contexts.

Doing Business as a Foreign Entity

First, an out-of-state entity will need to register with a state as a “foreign” entity if it is doing business in the state. As explained in Doing Business in CA? Be Sure to Register”, the term used in the California Corporations Code is to “transact intrastate business”, which is defined as “entering into repeated and successive transactions of its business in this state, other than interstate or foreign commerce” (emphasis added). (more…)