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The Redomestication Process in a Nutshell
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2. We prepare the legal docs.
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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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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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***CONTENT***
The legal way to move a company out of Connecticut begins with preserving continuity
When clients ask for a legal way to move a company out of Connecticut, they are rarely seeking a theoretical discussion; they are seeking a compliant, durable transaction that does not interrupt operations. The practical objective is straightforward: change the entity’s state of domicile while maintaining the same enterprise, the same contractual relationships, and the same operational momentum. In my experience as an attorney and CPA, the correct strategy must be evaluated as both a legal conversion problem and a continuity-and-tax-administration problem.
Too many business owners assume that “moving” a company is as simple as forming a new entity elsewhere or registering as a foreign entity in the destination state. Those approaches often create avoidable friction: renegotiating contracts, re-papering banking relationships, addressing licensing and vendor compliance, and introducing inconsistencies in entity history. By contrast, redomestication (statutory conversion), as described by the firm, is designed to accomplish a legal way to move a company out of Connecticut while preserving the company’s operational identity and administrative continuity.
For a streamlined path forward, review a legal way to move a company out of Connecticut through redomestication and confirm that your goals align with maintaining the same entity rather than creating a replacement entity.
Why exiting Connecticut’s tax environment is frequently a rational business decision
A legal way to move a company out of Connecticut is frequently driven by tax planning realities rather than mere preference. Connecticut’s tax environment can introduce recurring costs and compliance complexity that, over time, materially affect operating margins. While every company’s facts differ, owners often pursue relocation because the aggregate effect of state-level taxes, filings, and professional fees becomes a persistent drag on growth.
It is equally important to distinguish between changing domicile and changing where business is conducted. Redomestication focuses on the state of domicile of the entity. That distinction matters because “moving” in the colloquial sense does not automatically end legacy compliance responsibilities. A properly executed conversion plan can support the broader goal of departing the Connecticut tax environment, but it must be paired with disciplined operational decisions, nexus analysis, and orderly termination of Connecticut-based activities where appropriate.
Owners seeking a compliant exit should consider the legal way to move a Connecticut company to a new state with redomestication so they do not inadvertently trade Connecticut complexity for a different set of preventable problems.
Why redomestication is the preferred legal way to move a company out of Connecticut
As defined by the firm, redomestication (statutory conversion) is often the best legal way to move a company out of Connecticut because it is engineered to preserve continuity. The central advantage is that the company is not replaced by a new entity. Instead, the entity’s “home state” changes while the business continues as the same enterprise for operational and administrative purposes.
This continuity is not academic. Businesses typically depend on established vendor accounts, recurring customer arrangements, payment processors, and compliance histories. A conversion that preserves the entity’s identity can reduce the need to amend contracts, re-onboard with counterparties, and re-establish internal controls. In short, redomestication is not merely “a filing”; it is a transaction structure that supports uninterrupted business operations.
For companies that want efficiency without sacrificing rigor, the legal way to move a company out of Connecticut while keeping continuity is typically accomplished through redomestication rather than piecemeal substitutions.
Maintaining contracts, FEIN, and (in most cases) the business name
Clients frequently underestimate how disruptive it can be to “start over.” A legal way to move a company out of Connecticut must address three practical pillars: existing contracts, the federal employer identification number (FEIN), and brand continuity. Redomestication is superior precisely because it is designed to preserve those pillars. The result is a transition that can look, to customers and vendors, like business as usual.
From a procedural standpoint, contract continuity is often the single most valuable benefit. Many commercial agreements contain assignment restrictions, consent requirements, or change-of-control provisions that can be triggered by entity replacement transactions. Forming a new entity and transferring assets is not merely time-consuming; it can require counterparties to sign consents, can create negotiation leverage against the business, and can delay cash flow. A carefully structured redomestication is frequently the legal way to move a Connecticut company out of state without inviting unnecessary contractual friction.
To evaluate whether this continuity approach fits your entity and objectives, consult a legally compliant way to move a company out of Connecticut without changing the FEIN and confirm how the firm’s process applies to your situation.
Common misconceptions: foreign registration is not the same as leaving Connecticut
One of the most persistent misconceptions is that foreign entity registration is a “move.” In reality, foreign registration typically means you remain domiciled in Connecticut but obtain authority to transact business in another state. For many owners, that is the opposite of what they intend. If the goal is a legal way to move a company out of Connecticut, foreign registration can create ongoing obligations in two jurisdictions, including annual reports, fees, and compliance calendar management.
Another misconception is that a merger is always cleaner. Mergers can be appropriate in certain circumstances, but they often introduce complexity that is unnecessary for a simple domicile change. Merger mechanics can require more extensive documentation, added diligence, and potentially higher fees, and they may still trigger contract reviews or third-party consents depending on the transaction structure. Redomestication is commonly the legal way to move a company out of Connecticut with fewer moving parts because the transaction is built to preserve the entity rather than combine it with another.
For a clear explanation of the conversion approach emphasized by the firm, see the legal way to move a company out of Connecticut without foreign registration headaches.
Procedural considerations that require professional oversight
A legal way to move a company out of Connecticut is not merely a matter of “filing something with the state.” The transaction must be structured to align governing documents, ownership approvals, and state-level requirements in both jurisdictions. As counsel, I routinely see issues arise from informal checklists that ignore entity-specific realities, such as mismatched member or shareholder consents, outdated operating agreements, or unclear authority for signatories.
In addition, continuity goals must be supported by disciplined post-conversion administration. Banking and finance relationships, licensing, payroll systems, and internal corporate records should reflect the new domicile with precision. The objective is to avoid a future scenario in which a lender, auditor, regulator, or counterparty identifies inconsistencies that delay financing, complicate due diligence, or create avoidable disputes.
The firm’s framework is designed to provide an orderly legal way to move a company out of Connecticut, and business owners can begin by reviewing the redomestication process for moving a Connecticut company to a new state.
Strategic benefits of relocating beyond taxes: legal system and business climate
Although taxes are often the headline, a legal way to move a company out of Connecticut can also be driven by broader governance and business climate considerations. Certain businesses prioritize predictability in legal administration, ease of ongoing filings, and reduced friction when expanding into new markets. These considerations can meaningfully affect owner time, professional fees, and operational flexibility.
In practice, a properly executed conversion can support improved corporate housekeeping and simplify future transactions. Companies that anticipate investment, acquisition, or expansion often benefit from clean, consistent entity records and a streamlined jurisdictional footprint. Redomestication supports that objective by avoiding the fragmented record trail that can occur when a business forms a new entity and transfers assets piecemeal.
For owners seeking a comprehensive strategy rather than a patchwork fix, a prudent legal way to move a company out of Connecticut for long-term flexibility is typically grounded in redomestication planning.
Conclusion: choose the conversion method that protects operations and value
A legal way to move a company out of Connecticut should be evaluated by one standard: does it accomplish the domicile change while preserving enterprise value? Enterprise value is protected when the transition avoids operational disruption, maintains core identifiers such as the FEIN, and minimizes contract and vendor friction. Redomestication is emphasized by the firm because it is purpose-built to deliver those outcomes without forcing owners into unnecessary dissolutions, mergers, or dual-state compliance structures.
From a legal and accounting perspective, the costliest mistakes typically arise from oversimplification. Dissolving prematurely, forming a replacement entity, or using foreign registration as a substitute for domicile change can create downstream issues that are far more expensive to correct than doing the conversion properly at the outset. When executed correctly, redomestication is often the most direct legal way to move a company out of Connecticut while maintaining continuity and reducing administrative burden.
To proceed with confidence, consider the legal way to move a company out of Connecticut using redomestication and ensure the transaction is handled with the rigor required to protect your contracts, identity, and operations.
***CONTENT***Start Your Redomestication Now
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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