Doing Business in Connecticut with a Delaware LLC

doing business in connecticut with a delaware llcWhen forming an LLC, Delaware is often the most popular choice. This is due to Delaware’s strong corporate law structure, which is considered by many to be #1. 

When forming a Delaware LLC, your business is domestic to Delaware and foreign to every other state. When operating a Delaware LLC in Connecticut, clients can register as a foreign entity in their home state of Connecticut.

The process of registering a Delaware LLC as a foreign entity in Connecticut is called Foreign Qualification. It is the way in which the state of Connecticut grants you permission to operate with a Delaware LLC. Each state has this qualification but each state presents different requirements.

Since each state has its own requirements, let us take care of this detail for you. Connecticut, like most states, has an application process and a state fee. Unlike most states, however, Connecticut does not require a Certificate of Good Standing from Delaware. We can prepare the appropriate documentation, email it to you for your signature, and then file the documents directly with Connecticut.

Once your application has been approved, wewill send you a Certificate of Authority. This document states that your Delaware LLC has acquired the authority to operate in Connecticut. This is a very important, yet often overlooked, step.

We can also act as your Registered Agent in Connecticut for $99 per year.

Once registered in Connecticut, there are annual reporting requirements. The Connecticut annual report is due before March 1 of each year. The cost for a foreign LLC's annual report in Connecticut is $80. The Connecticut Secretary of State will mail a reminder to your Registered Agent in advance of the due date.

Your foreign entity maintains three annual responsibilities: it must file a Connecticut annual report, pay the Registered Agent Fee and pay the Franchise Tax. Your Registered Agent should send reminders to you about these critical Delaware compliance fees.

If you need assistance in registering your Delaware LLC in Connecticut, or have additional questions, please call 1-800-345-2677 Ext 6130 or email devin@delawareinc.com.

*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.

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