Doing business in Connecticut involves a variety of activities, from creating or acquiring debts and mortgages to owning real estate or personal property. The Connecticut LLC Act outlines certain activities that do not constitute business transactions in the state. It is important to understand what constitutes doing business in Connecticut, as well as the rules for qualifying a foreign (non-Connecticut) limited liability company (LLC) to do business in the state. Businesses of all sizes need to be aware of the rules and regulations that govern doing business in Connecticut.
This includes understanding what activities constitute doing business, as well as the liabilities associated with conducting business transactions without a certificate of registration. It is also important to understand the guidelines for what constitutes doing business in other states, such as Canada, Guam, Puerto Rico and the Virgin Islands. The Connecticut LLC Act states that a foreign business entity is liable for each taxable year (or part of the taxable year) in which it is authorized to conduct business transactions in Connecticut. This includes entities that are inactive or unprofitable, or no longer transacting business in the state.
Furthermore, a foreign LLC that has an ownership interest in another business that conducts business in Connecticut is not considered to conduct business transactions in the state. The Department of Revenue Services (DRS) encourages businesses to use the free and secure Taxpayer Service Center (TSC) to file and pay their taxes. Individuals who are partners, members, or shareholders of a business entity responsible for BET are not required to add BET to their federal adjusted gross income when calculating their Connecticut adjusted gross income.