Moving an LLC to Connecticut? Or forming a new LLC in the state? You’ve come to the right place. This guide will take you through the process of CT LLC domestication step by step, so you can get your business up and running in no time.
We’ll cover everything from filing the necessary paperwork with the Secretary of State to obtaining a Certificate of Authority from the Department of Revenue Services. So, let’s begin
What is Connecticut LLC Domestication?
LLC domestication in Connecticut means changing the location or domicile of your LLC from any state into Connecticut. In other words, if you want to move your Georgia LLC to Connecticut, for instance, LLC domestication is the best way to do so.
By LLC domestication, you change the governing laws of your LLC. Domesticating your LLC into Connecticut will have the following benefits over other methods of moving your LLC to Connecticut:
- LLC domestication allows you to maintain previous business relationships.
- No need to renew contracts made in the previous state.
- No need to change bank accounts and credit rating.
- You can retain your EIN (Tax ID Number).
- No need to rehire employees.
- No need to transfer assets.
How to Domesticate your LLC in Connecticut
There’s always something new to learn in the ever-changing landscape of business, and this same goes for LLC domestication in Connecticut. Below, we explained the process of transferring an LLC from any state to Connecticut via CT LLC domestication in 3 simple steps.
Acquire a Certificate of Good Standing
A certificate of good standing is also called a certificate of existence or certificate of status in some states. It is a legal document issued by the state authorities, usually the secretary of state.
In other words, this official document states that you timely pay your LLC taxes, submit LLC annual reports and fees, follow the state laws in all business operations: hence, your business is in good standing with the state.
Connecticut LLC domestication requires that your LLC does not have any outstanding debts or taxes in the home state. So you have to pay state taxes, LLC annual fees, and other fees in the state where you initially registered your LLC.
To prove that your LLC is up to date on all important business marks, you need to submit a certificate of status while filing Articles of Domestication in Connecticut.
Approval of LLC Domestication
Before you file articles of domestication with the Connecticut Department of State, you need to acquire approval from the state where you originally formed your LLC.
Contact the state department where you initially filed your articles of organization and acquire permission to move your business out of that state.
For instance, if you want to move your Texas LLC to Connecticut, you need to get permission to transfer your LLC out of Texas from the Texas Secretary of State.
File an Articles of Domestication Connecticut
To formally move your LLC from the LLC’s home state to Connecticut, you need to file articles of domestication downloaded with the Connecticut department of state.
With Connecticut Articles of Domestication, you will see Connecticut articles of organization form as well. So you need to file the Connecticut certificate of domestication along with the Connecticut articles of domestication.
To download both forms, click on the link below:
Moreover, you also need to submit the certificate of good standing to show that your LLC does not have any outstanding state taxes or debts in the previous state.
Finally, depending on the LLC management structure mentioned in your LLC operating agreement, you need the signature of the authorized person to sign the Connecticut LLC domestication form. After completing all the information, send the complete forms to:
Business Services Division
Connecticut Secretary of the State
P.O. Box 150470
Hartford, CT 06115-0470
Requirements to Complete Connecticut Articles of Domestication Form
As mentioned earlier that Connecticut articles of domestication are filed with the Connecticut articles or organization; the following information/documents will be needed to complete the LLC domestication process:
- Certificate of good standing from the previous state
- LLC domestication approval from the previous state
- Name of the domesticating entity (The name of your LLC with which you used to operate your business in the previous state)
- The name of the previous state where your LLC was registered
- The date when your LLC was formed initially
- Connecticut articles of organization form with Connecticut registered agent information
- Signature of the authorized person to initiate LLC domestication
- The effective date of the LLC domestication, if it is not the same as the date of filing of the Connecticut articles of domestication
Connecticut LLC Domestication Fee (Cost)
To convert an out-of-state LLC into a Connecticut LLC, you need to pay the following fee to the Connecticut Department of State along with the Connecticut articles of domestication:
- Articles of Domestication: $25
- Articles of Organization: $125
- Total to Domesticate and file: $150
Alternatives to LLC Domestication Connecticut
If you do not plan to move your LLC to Connecticut permanently, or for any other reason Connecticut LLC domestication does not seem suitable, the followings are the alternative to Connecticut LLC domestication:
- Operating as a Connecticut Foreign LLC
- Forming a new LLC in Connecticut LLC and merging it with the Old LLC
- Dissolving the Old LLC and Forming New LLC in Connecticut
What Next After Connecticut LLC Domestication?
Once the state of Connecticut domesticates your LLC, the laws of the previous state will no longer apply to your LLC.
Now your LLC will be governed under the LLC statute of Connecticut. Now, to remain compliant with the laws of Connecticut, you need to:
- Make sure you pay outstanding LLC federal taxes or debts in the previous state.
- Keep your registered agent information up to date. If you don’t have one, you can review top registered agent services here.
- Follow your LLC operating agreement.
- Acquire licenses and permits specifically required by the new state.
- Regularly submit annual reports and fees.
- Pay Connecticut sales tax (6% on the total sales).
Moving an LLC out of Connecticut
The Connecticut Department of state allows an LLC to move out of Connecticut via LLC domestication. However, the law of the other state must permit LLC domestication in its statute.
For the states that allow LLC domestication, you need to submit a Connecticut certificate of status to domesticate your LLC there. Click on the following link to get a Connecticut certificate of status.
FAQs on How to Domesticate an LLC in Connecticut
Alfie Wilson, Esq., is a legal content writer with expertise in business formation, criminal law, veterans disability, family law, DUI law, personal injury, animal welfare, and legal writing. He holds a J.D. from Emory University School of Law and has experience in appellate advocacy and regulatory matters. Alfie’s passion lies in breaking down complex legal topics for a non-lawyer audience. He currently writes for law firms and non-profits on various issues and resides in Arlington, Virginia.