Determining whether an out-of-state business is required to register and become licensed in Connecticut depends on physical presence.
Presence can be in the form of having a Connecticut location, in other words having an address which also includes having a home-based office, or salesmen actively selling in-person to clients in the state, company vehicles delivering products to customers in the state (common carriers such as UPS, FedEx and etc.. not included) and the like.
If all of the above holds true, then the business will need to adhere to registration requirements and obtain any necessary licenses or permits.
In a situation where no transactions physically occur within the state, no registration or licensing is required.
This also holds true for a company that hires a Connecticut resident to perform a function which does not include selling products or services to Connecticut customers.
For example, an employee offering administrative support or other services which are specialized for the offices based in another state. Or, an out-of-state company that sells strictly by the internet and uses a common carrier to deliver their product or service.
If it is determined that the company has a physical presence and employees will work in Connecticut, the company is required to register and become licensed but also register as an employer.
The registration outlines provided above cover how to register as an employer, however, income tax details specific to employees for out-of-state companies can be found on page 9 of the Connecticut Department of Revenue Services’ Employer Tax Guide.
Additionally, the Connecticut Department of Labor provides information for multi-state employees and the unemployment compensation tax starting on page 6 of their An Employers Guide to Unemployment Compensation.
If a company has difficulty in determining whether there is a physical presence and if there is a registration obligation, the Connecticut Licensing Info Center suggests consulting with an attorney. Contact the Connecticut Licensing Info Center (CT-CLIC.com) to learn about further registration considerations or if you require additional assistance: 1-800-392-2122 or Contact form.
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