When 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 on the anniversary month of the creation of your Foreign Qualification. The cost for a foreign LLC's annual report in Connecticut is just $20. 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 firstname.lastname@example.org.
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.