Connecticut has collected approximately $1,301,845.33 from 321 out-of-state businesses operating in the state without proper registration in the 2018 fiscal year. Fines range from $285 to $30,795. Notable companies on the list include Subway, MTV and Penguin Random House Publishing, according to the Office of the Attorney General.
“State law requires that business corporations, nonstock corporations, limited partnerships, limited liability companies, limited liability partnerships and statutory trusts formed outside of Connecticut must obtain a certificate of authority from the Secretary of the State’s Office and pay a fee set by statute before transacting business in Connecticut,” State Attorney General George Jepsen said in a press release.
Businesses that are not registered must pay a $300 fine every month to the state, according to the press release. Some companies must pay an annual license fee for all the years they were unregistered. After obtaining the certificate that allows them to do business in Connecticut, out-of-state companies must also file a yearly annual report with the Office of the Secretary of the State.
“Registration provides consumers with a layer of security and ensures that all businesses are operating on a level playing field,” Jepsen said. “It is my continued hope that, through these joint enforcement efforts, we can educate out-of-state businesses about their responsibilities under Connecticut law and help to encourage compliance.”
According to Connecticut law, the unregistered business fee has been around since 2012 under CT Gen Stat section 34-224.
Some University of Connecticut students said they felt the fines would discourage businesses from working in Connecticut.
“I don’t think this is a good idea because Connecticut needs as much business as it can get, and fining these businesses might make them relocate to other states,” third semester economics major John Peterson said.
The press release stated that in Connecticut, over 5,000 out-of-state companies have registered in the 2018 fiscal year.
Joshua Oculam is a campus correspondent for The Daily Campus. He can be reached via email at email@example.com