The term “doing business” refers to a legal condition where a business regularly conducts its normal activities in a state other than its original registered jurisdiction or has substantial contacts within that state. It also applies to having a presence in a state for legal and tax purposes. While SPVs are considered businesses, they are generally passive entities. The issue of “doing business” arises for SPVs when determining whether to file a Foreign LLC registration. Definitions of “doing business” vary by state, with some, like California, using broad language, while others have more specific provisions. (See Foreign LLC.)
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