What permits or licenses do I need to open a branch in another state?
We are licensed mortgage brokers in Hawaii and we would like to open a branch in California. Aside from the finance lenders license we need to obtain, what other permits are needed?If you plan to set up operations in another state, you will need to either form a totally new business entity in that state or "qualify" as a foreign (that is, out-of-state) entity to do business there. You should discuss with your accountant and attorney which approach makes the most sense for your business because they involve different costs and tax ramifications. It may also depend on whether the owners of the Hawaii company will be identical to the owners of the California company.
Nina L. Kaufman, Esq. is an award-winning New York City attorney, edutainer and author. Under her Ask The Business Lawyer brand, she reaches thousands of entrepreneurs and small business owners with her legal services, professional speaking, information products, and LexAppeal weekly ezine. She also writes the Making It Legal blog.