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Ask a Lawyer -- Corporations Question 59
Question:
Does the mere presence of an employee in a state other than the one business is incorporated in constitute intrastate business and therefore require for. qualification? Note: No sales are transacted (sales are transacted with distributors) but contact is made with end users to push our product upward towards the resellers etc....
Response: Sorry but I think the presence of an employee plus customer contact are sufficient minimum contacts for your corporation to be considered "doing business" in the other state. Even having an employee make regular visits in a state is considered sufficient minimum contacts. The fact that independent affiliates (distributors in this case) actually close the sale does not save the situation in my mind. Perhaps a corporate lawyer, spending time to research the issue specifically in the state in question, would reach another conclusion.
Submitted: 11/13/2008; Maria, Minnesota
Response: 11/13/2008; JJR
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