What is Foreign Qualification?
Foreign qualification is the process of registering your business in a state other than the one it was formed in or is currently located in. It is required to remain legally compliant with laws, and any business regardless of size or focus will have to do so.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – Foreign qualification is required if a corporation or LLC wants to stay compliant and do business legally in Connecticut. This includes most business operations including opening a warehouse, shipping hub, storefront, or office.
When Should You Do It? – The sooner a company begins the process, the sooner it will be able to start operating in Connecticut. As such, it’s a good idea to start the process when a business finalizes the decision to branch out into Connecticut. Generally, you will need complete Connecticut foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Connecticut
- Buying a property there
- Have remote employees
- Accepts orders in Connecticut
- Owns a bank account in Connecticut
What Happens If Your Entity Does Not Foreign Qualify?
If you fail to foreign qualify it can bring significant fines, fees, and penalties to your business. This can be quite significant. You may also face back taxes and other tax related issues. And, you can’t bring any legal action to the courts in Connecticut until you are foreign qualified.
Steps To Obtain Foreign Qualification
There are several steps that must be taken in order to successfully register for Connecticut foreign qualification. These include the following.
1. Obtain Certificates – Connecticut requires that you file a form known as an Application For Registration Limited Liability Company if you are an LLC, and an Application for a Certificate of Authority for Corporations. These forms can be downloaded from the Secretary of State website and completed in full. You can submit these files by fax, mail, or in person. Corporations should also secure a Certificate of Existence from the home state. LLC’s are not required to obtain a Certificate of Existence.
2. Collect And Submit Information – The application will request a lot of information that you should provide.
LLC
- The LLC name registered in your company’s home state
- An alternate name if the original name is unavailable
- Name of the home state
- The original date of formation
- The date when your LLC began or will begin doing business in Connecticut
- The principal office and mailing addresses
- Registered agent information
- Name of at least one manager or member, including their business and residential addresses
Corporation
- The Corporation name as stated in the Certificate of Existence
- Alternative name if corporation name is unavailable
- Verify if company is a non profit or for profit
- Name of the home state
- The date of original incorporation
- The duration of the Corporation
- The date when the foreign corporation will start doing business in Connecticut
- The principal office and mailing addresses
- The name of officers and directors, their titles, residential and business addresses
- Registered agent information
3. Appoint Registered Agent – An LLC or corporation will have to appoint a registered agent as well. They will be responsible for receiving documents related to the business and its foreign qualification as well as ongoing compliance requirements. To save time and streamline their daily activities, most businesses elect to use a third party provider such as DoMyLLC to serve as their registered agent.
4. File The Application – With the forms completed, you’ll have to file them with the Secretary of State along with a filing fee of $120 for LLCs or $385 for Corporations.
5. Ongoing Maintenance – Upon completing the process, the business will be able to legally operate in Connecticut. However, the state requires an annual report be filed as well. This is due each year by the end of the month of the anniversary of the original foreign qualification.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporating is a step that forms an entirely new business entity. Foreign qualification doesn’t form a new business. It allows a corporation or LLC to do business in the state that it is registering for – in this case, Connecticut.
How DoMyLLC Can Assist With Streamlining The Process
Our team of professionals handles the entire process of Connecticut foreign qulaification. This takes the stress and burden off the shoulders of business owners and lets them focus on running their business. We offer:
- Unlimited customer support
- Name search
- Full filing and registration for foreign qualification
- Dedicated account managers
When you need to move your business into Connecticut, contact us and let our team take care of the process for you.
Connecticut Foreign Qualification FAQs
What Paperwork Is Required?
Businesses must file an Application for Registration Limited Liability Company – Foreign or an Application for a Certificate of Authority for Corporations with the Secretary of State. Forms can be found on the state website.
What Fees Are Needed?
The filing fee to register for foreign qualification in Connecticut is $120 for an LLC and $385 for a Corporation.
Who Can File For Foreign Qualification?
Any business that is located in a state other than Connecticut but that wishes to do business there will be able to – and need to – file.
Do You Need An Attorney For Foreign Qualification?
You don’t technically need an attorney to handle that process for you, but consulting with your legal team is always a good idea before you do any business related processes.
What Information Is Needed For The Certificate Of Authority?
You’ll need to include several pieces of information, specifically:
- Business name
- Jurisdiction
- Business address
- Name and address of your registered agent
What If My Name Is Not Available?
You will have to create and file under a fictitious business name if your name is already taken. This won’t change the name of your business in its home state, but you will have to use the fictitious name when operating in Connecticut.
Connecticut Business Resources
Connecticut Office of Secretary of State
Phone:
(860) 509-6003
Address:
Connecticut Secretary of State
30 Trinity Street
Hartford, CT 06106
If you’re interested in more info on foreign qualification, call 888-366-9552.