Legal Question in Business Law in New York

Foreign qualification

I am forming a Delaware LLC (consulting business) and I am located in NY. My main (if not all) business will come from a CT client. 1) Do consulting businesses have to foreign qualify? 2) Must (or should) I qualify for both NY and CT? Thank you.


Asked on 9/05/08, 3:13 pm

1 Answer from Attorneys
Steve Brodsky Esq. CheapNewYorkLLC.com

Re: Foreign qualification

Many people are under the false impression that forming a DE entity has certain advantages. For most people, that is not true at all. In fact, forming your LLC in a state other than your home state will end up costing you much more. For example, if you are located in NY, but form in DE, you will also have to qualify as a foreign LLC in NY, which will be VERY expensive, given the filing & legal publishing fees. Plus, you may have to qualify in CT depending on that state's rules. Feel free to email me if you have other questions.

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Answered on 9/06/08, 11:36 am


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