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The Redomestication Process in a Nutshell
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Submit payment securely online then sit back and relax.
2. We prepare the legal docs.
Our dually-licensed attorney+CPA prepares the legal documents and sends them to you via DocuSign.
You sign. We take it from there.
3. We submit the legal filings to the states.
We monitor the status closely, respond to inquiries from their offices, and send you weekly updates.
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4. Approved! ✅
We send you a checklist of go-forward obligations and simple steps for your tax pro to follow.
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Redomestication, also known as redomiciling, refers to the lesser-known legal process of transferring or moving the "home state" of an existing Corporation, partnership, or LLC, from Connecticut to a new state. It means keeping your existing company name, credit, and federal employer identification number (FEIN) without wasting time and money creating a new business entity, applying for foreign registration, or moving assets between companies.
— Prof. Chad D. Cummings, Esq., CPA
| Our Law Firm | Other Law Firms | LegalZoom® / RocketLawyer® | DIY | |
|---|---|---|---|---|
| Licensed Attorney | ✅ Yes | ⚠️ Varies | ❌ No | ❌ No |
| Licensed CPA | ✅ Yes | ❌ No | ❌ No | ❌ No |
| Owes you fiduciary duties under the law | ✅ Yes | ✅ Yes | ❌ No* | N/A |
| Experience | ✅ 500+ | ⚠️ Varies | ❌ None* | ❌ None |
| Success Rate | ✅ 100% | ⚠️ Varies | ❌ Zero* | ❓ Who knows? |
| Money-Back Guararantee | ✅ 120% | ❌️ None | ❌ None* | N/A |
| Timeline | 🚀 1-3 months | ⚠️ 6 months+ | 🔥 Months to fix | 🔥 Months to fix |
| Expedite Option | ✅ Yes | ⚠️ Varies | ❌ None | ⚠️ Varies |
| Weekly Updates | ✅ No charge | 💰️ At charge | ❌ None | ❌ None |
| Legal Fees | ✅ Flat-fee | ⚠️ Varies | 🔥 Very high to fix | 🔥 Very high to fix |
| *It is illegal in all states to practice law without a license, and only a licensed attorney can render legal advice to or prepare custom legal documents for clients. LegalZoom®, RocketLawyer®, and similar services are not attorneys nor law firms and cannot perform redomestications. | ||||
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How to transfer a company out of Connecticut without disrupting operations
When business owners ask, in substance, how to transfer my company out of Connecticut, they are rarely seeking a theoretical discussion. They are seeking a lawful, practical, and minimally disruptive mechanism to relocate the company’s legal “home state” while preserving the organization’s continuity, including its relationships with customers, vendors, lenders, and employees.
From an attorney-and-CPA perspective, the most efficient approach is typically redomestication (statutory conversion), which transfers the entity’s domicile from Connecticut to the new state while keeping the same enterprise intact. For a step-by-step overview and filing pathway, review how to transfer your company out of Connecticut through redomestication.
Critically, a properly executed redomestication is designed to avoid the operational discontinuity that often accompanies dissolutions, asset transfers, and “start-over” entity formations. For many established entities, that continuity is not merely convenient—it is essential to maintaining banking relationships, contract performance, and commercial credibility.
Why exiting the Connecticut tax environment can materially improve outcomes
Connecticut-based entities often encounter a tax and compliance posture that can feel disproportionate to the company’s current footprint—particularly after management, personnel, customers, or assets have moved. In that context, the question of how to transfer a company out of Connecticut becomes inseparable from the goal of reducing recurring state-level friction.
Although every situation is fact-specific, relocating the company’s domicile may help support a cleaner long-term compliance profile—especially when the business has permanently ceased Connecticut operations. The purpose is not to “evade” obligations; rather, it is to align the entity’s legal home with its real operational center and to reduce unnecessary filings, renewals, and administrative drag.
Practically speaking, owners frequently underestimate how long legacy Connecticut obligations can persist when they choose a half-measure, such as remaining a Connecticut entity while merely registering elsewhere. For a clear explanation of the redomestication route, consult options for transferring a business out of Connecticut via redomestication.
Legal-system considerations: controlling risk by choosing the proper mechanism
When evaluating how to transfer my company out of Connecticut, sophisticated owners recognize that legal risk is not limited to state filings. The chosen method affects enforceability of contracts, governance continuity, member or shareholder rights, and the predictability of dispute resolution—particularly for entities with multiple owners or material commercial relationships.
Redomestication is often preferred because it preserves the same legal entity while changing its domicile, which helps maintain continuity in a manner that reduces the risk of unintended novation issues, assignment disputes, or “new entity” arguments that sometimes arise after mergers or asset transfers. In other words, the goal is to relocate the company without creating avoidable legal seams that counterparties can exploit.
Owners should also anticipate that lenders, insurers, key vendors, licensing authorities, and major customers may request evidence of the conversion. A carefully managed redomestication plan includes a documentation strategy that supports ongoing operations, including clean records for diligence requests. For the firm’s process and deliverables, see guidance on transferring your company out of Connecticut with redomestication.
Redomestication is superior because it preserves the enterprise you already built
For most established entities, the decisive question is not simply how to transfer a company out of Connecticut; it is how to do so while preserving the most valuable forms of continuity. Redomestication is designed to maintain the company’s existing legal identity, rather than replacing it with a new entity and a patchwork of transfers.
As described in the firm’s materials, redomestication commonly allows the business to retain its existing contracts, its federal employer identification number (FEIN), and—in most cases—its name. Those elements matter because they reduce or eliminate the need to retitle bank accounts, repaper vendor agreements, renegotiate customer contracts, re-onboard payroll systems, or explain corporate “restructuring” to counterparties who did not request it.
By contrast, dissolving and reforming often creates avoidable disruption, including contract assignment requirements, licensing reapplications, and administrative delays. If the objective is continuity with a change of domicile, the redomestication pathway is generally the cleaner legal architecture. A direct next step is to review how to transfer your company out of Connecticut by statutory conversion.
Common misconceptions that lead to costly mistakes
In my experience, the most damaging misconception is the belief that the problem is solved once the company “registers” in the new state. That approach may address the ability to transact business in the new jurisdiction, but it often leaves the entity tethered to Connecticut as its home state—thereby continuing annual obligations and preserving a dual-compliance posture. For owners asking how to transfer my company out of Connecticut, that is typically not the intended outcome.
A second misconception is that dissolution is a necessary step to “move” the company. Dissolution is not a relocation mechanism; it is a termination event. If dissolution is mishandled, owners may inadvertently trigger downstream problems, including contract defaults, licensing interruptions, and operational uncertainty. Even when dissolution is performed correctly, it is frequently a blunt instrument when the business is meant to continue uninterrupted.
A third misconception is that a merger is the “professional” approach by default. While mergers are appropriate in certain business combinations, they can be unnecessarily complex and expensive when the actual goal is simply to change domicile. Redomestication is usually the better fit when the company is continuing as-is, with the same owners and the same operating business. For a precise explanation, refer to how transferring a Connecticut company works through redomestication.
Procedural and documentation issues owners should address before filing
To execute a compliant plan for how to transfer a company out of Connecticut, the starting point is governance. The entity’s internal approvals—member consents, shareholder authorizations, board actions, and any required notices—should be handled with care. These are not “formalities”; they are the foundation for enforceability, defensibility, and the integrity of the company’s corporate record.
In addition, owners should inventory key third-party relationships and regulatory touchpoints. Examples include banking resolutions, UCC filings, professional licenses, permits, insurance policies, merchant processing, payroll providers, and customer contracts with change-of-organization provisions. A disciplined checklist prevents the “surprise” scenario in which a counterparty later demands re-papering because the company cannot produce clean documentation of its conversion.
Finally, businesses should plan the communications layer. While redomestication is designed to preserve continuity, counterparties often appreciate proactive clarity regarding the company’s unchanged identity, its preserved FEIN, and its ongoing contractual obligations. For the firm’s implementation framework, see how to transfer your company out of Connecticut efficiently with redomestication.
Conclusion: the strongest answer to “how do I transfer my company out of Connecticut?”
For owners seeking a reliable solution to the underlying question of how to transfer my company out of Connecticut, the primary objective should be continuity with legal certainty. Redomestication is specifically designed to change the entity’s home state while preserving the operational and tax identifiers that businesses rely upon—most notably the company’s contracts, FEIN, and, in most cases, its name.
In a properly planned conversion, the company does not “start over.” It continues—just under a new domicile aligned with the business’s current operations and long-term strategy. That alignment can reduce administrative burdens, help rationalize compliance, and position the company for growth in a more favorable business environment.
To proceed with a structured, attorney-led process, review how to transfer a Connecticut company out of state through redomestication and begin the filing workflow.
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Domestication vs. Foreign Registration vs. Merger vs. Dissolution: A Comparison
Domestication is a distinct legal process from foreign entity registration, merger, or dissolution.
Redomestication™ is generally the most efficient and cost-effective method for relocating a business to a new state, particularly when the company has permanently ceased operations in its original state. It does not involve dissolution. Many people make the mistake of dissolving their company when relying on incomplete or misleading advice.
Unlike foreign entity registration or merger, redomestication™ allows a business to retain its EIN, contracts, credit history, and brand identity—preserving continuity while minimizing tax risks and administrative burdens. It also eliminates the need to maintain dual registrations and tax obligations, potentially saving substantial time and money. By contrast, foreign registration can create ongoing compliance costs in the former state, and mergers often involve unnecessary legal complexity and higher fees.
Domestication is, in many circumstances, far preferable to registering an LLC or corporation as a foreign entity, especially where the LLC or corporation has permanently moved its operations and will not be returning to the prior state in the near future.
Some attorneys, unfortunately, confuse their clients by recommending a foreign entity registration in the new state, or worse, a merger, where a redomestication™ would have accomplished the goals of moving their business to a new state efficiently and effectively.
The top seven benefits of moving your company (LLC, corporation, or partnership) to a new state via redomestication™ to transfer your business include:
- Maintaining your existing federal employer identification number, eliminating the tax headaches of forming a new company or transferring assets between companies (and inadvertently triggering a hefty tax bill from the IRS) when you move your business to a new state;
- Keeping your existing business credit history and track record, safeguarding your reputation with clients, vendors, and creditors when moving your LLC or corporation to a new state;
- Continuing your existing business name (in almost every case), protecting your most important assets when moving your company to a new state: your brand, reputation, and time you have already invested in search engine optimization;
- Maintaining your existing contracts with customers and vendors because moving your business to a new state via redomestication™ does not create a new company: it maintains your existing company, saving you dozens (or even hundreds) of hours re-writing (and re-negotiating) contracts and changing banks;
- Eliminating the need to continue paying registration fees and taxes in your prior state (assuming you have discontinued your operations there and have permanently relocated to a new state), potentially saving you tens of thousands of dollars (or more) in state taxes every quarter when you move your business to a new state;
- Avoiding unnecessary IRS scrutiny because moving your LLC or corporation to a new state via redomestication™ is a tax-free transaction under the Internal Revenue Code; and
- Reducing the amount of time you spend on administrative filings, saving you untold hours annually, by moving your company to a new state.
Before taking the "penny wise and pound foolish" approach of foreign entity registration or spending countless hours and exorbitant legal fees (and possibly taxes) on a merger or merger-gone-wrong to move your company to a new state, ensure you understand your options.
| Redomesticate™ | Foreign Entity | Merge | Dissolve | |
|---|---|---|---|---|
| Need to Continue Paying & Filing Registration Renewals in Former State | ✅ No | ❌ Yes | ⚠️ Varies | ☠️ No, she's dead, Jim. |
| Stop Paying Taxes in the Former State* | ✅ Yes | ❌ No | ⚠️ Varies | ☠️ Tax event.* |
| Initial Complexity | ✅ Low | ⚠️ Varies | ❌ High | ❌ High, when done right. |
| Ongoing Complexity | ✅ Very Low | ❌ High | ❌ High | ☠️ None. All gone. |
| Initial State Filing Costs | ✅ Low | ⚠️ Varies | ❌ High | ⚠️ Varies |
| Timing | ✅ Fast | ⚠️ Varies | ❌ Slow | ⚠️ Varies |
| Legal Fees | ✅ Low | ⚠️ Varies | ❌ $10,000 or more | 🔥 Very high to fix. |
| *While every situation is different and dependent upon tax nexus, redomesticating can be an effective way to reduce or eliminate taxes in a former state in certain circumstances. Ask your CPA for more information. Our firm does not provide tax advice or perform tax work except by separate engagement at an additional charge. | ||||
In most circumstances, redomestication™ (and not a foreign entity registration or costly and complicated merger) is the best route to achieve a change in company domicile to a new state.
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