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May our nonprofit conduct activities in a new region?

Your Legal Questions Answered

May our nonprofit conduct activities in a new region?

Our agency is based in the South and is expanding into New England.  Can we lease an apartment where administrators and staff can stay while visiting the region?  Can we purchase a vehicle to use when traveling around the region rather than lease a car for $600 a week?  We are expecting to get an office very inexpensively for client sessions and onsite staff training.

You can do all of these things.  Depending on the state law of the states where you will now be active, you will probably be “doing business” within the state(s) and may be expected to formally register to do business, not only the state in which you have an office and temporary residence for staff, but also the states in which you will be “travelling around” and perhaps dealing directly with clients.  Normally, the penalty for failing to register to do business when required is being unable to file a complaint in the courts of the state in which you aren’t registered.  But the states normally allow you to register later in order to start a suit if necessary.

You may also have to register to solicit charitable contributions in your new state(s) if not already registered there.

Check with an attorney in your new state(s) to see if any of these registrations is recommended or required.

Tuesday, May 7, 2024

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