16-1a-506. Activities that do not constitute doing business.

288 words·~1 min read·/ut/title-16/chapter-1a/16-1a-506

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Effective 10/1/2026

(1)The following activities of a filing foreign entity do not constitute doing business in this state:

(a)maintaining, defending, mediating, arbitrating, or settling an action or proceeding;

(b)carrying on an activity concerning the filing foreign entity's internal affairs, including holding meetings of the filing foreign entity's interest holders or governors;

(c)maintaining an account in a financial institution;

(d)maintaining an office or an agency for the transfer, exchange, and registration of the filing foreign entity's or the foreign limited liability partnership's securities;

(e)maintaining a trustee or a depository for the filing foreign entity's securities;

(f)selling through an independent contractor;

(g)soliciting or obtaining an order by any means if the order requires acceptance outside this state before the order becomes a contract;

(h)creating or acquiring indebtedness, a mortgage, or a security interest in property;

(i)securing or collecting a debt;

(j)enforcing a mortgage or a security interest in a property;

(k)holding, protecting, or maintaining property the filing foreign entity acquires by enforcing a mortgage or a security interest;

(l)conducting an isolated transaction that is outside the scope of the filing foreign entity's ordinary course of business;

(m)owning real property; and

(n)doing business that constitutes interstate commerce.

(2)A person does not do business in this state by being an interest holder or a governor of a foreign entity that does business in this state.

(3)This section does not apply when determining whether the contacts or activities subject a filing foreign entity to service of process, taxation, or regulation under a law of this state outside of this chapter.

Enacted by Chapter 93 , 2026 General Session