Connecticut Secretary of the State Denise Merrill and Attorney General George Jepsen announced that enforcement efforts against out-of-state companies operating in Connecticut without legal authority have yielded more than $1.3 million in fiscal year 2018.
In fiscal year 2018, almost 5,000 foreign entities properly filed with the Secretary of the State’s office. Companies in violation of the state’s law are subject to a $300 fine for every month the company is transacting business in Connecticut without legal authority. In addition, some business corporations are required to pay the annual license fee required by statute for years they should have been registered with the Secretary of the State’s office.
Determining whether your company has to foreign qualify to do business in another state can be a complex and time-consuming task. The rules for foreign qualification vary greatly and, as the Connecticut case demonstrates, making the wrong decision can be costly. “Doing Business Outside Your State: The 2018 CSC® Guide” covers a wide variety of applicable qualification issues to help you navigate the waters of doing business outside your state.
Download your complimentary copy here: https://www.cscglobal.com/service/campaigns/doing-business-outside-your-state-guide/
CSC also partners with LexisNexis® to publish a variety of titles related to these matters and others.
- Order a copy of CSC® Connecticut & Rhode Island Laws Governing Business Entities Annotated book
- Order a copy of the full Qualifying to Do Business in Another State: The CSC® 50-State Guide to Qualification