How to Form an LLC in Connecticut (CT LLC 2023)
Forming a Limited Liability Company (LLC) in Ohio is an easy process, but it involves a few steps.
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Forming an LLC in Connecticut for $0 (DIY Summary)
Here’s a brief step-by-step guide to help you through the DIY process, along with relevant links to official resources:
Forming a Limited Liability Company (LLC) in Connecticut can be an excellent choice for entrepreneurs and small business owners due to its flexibility and liability protection.
If you’re considering starting an LLC in Connecticut, this step-by-step guide will walk you through the process. Let’s get started!
1. Choose a Name for Your LLC
The first step is to select a unique and distinguishable name for your Connecticut LLC.
Ensure that the name you choose complies with the state’s naming requirements.
To check the availability of your desired LLC name, you can use the Connecticut Secretary of State’s Business Inquiry Search: https://www.concord-sots.ct.gov/CONCORD/
2. Appoint a Registered Agent
A registered agent is an individual or business entity that accepts legal documents on behalf of your LLC.
In Connecticut, your LLC must have a registered agent who has a physical address within the state.
You can choose to act as your own registered agent or hire a professional registered agent service.
3. File Articles of Organization
To officially form your LLC in Connecticut, you’ll need to file Articles of Organization with the Connecticut Secretary of State.
You can file online through the Connecticut Business Startup Tool: https://www.concord-sots.ct.gov/CONCORD/
Be prepared to provide information such as your LLC’s name, registered agent details, and principal business address.
4. Create an Operating Agreement
Although not legally required, it’s highly recommended to create an operating agreement for your LLC.
This document outlines the ownership and operating procedures of your business.
It can help prevent disputes and provide clarity on how decisions are made within the company.
5. Obtain an Employer Identification Number (EIN)
An Employer Identification Number (EIN) is a unique nine-digit number issued by the IRS.
It is used for tax purposes and is required if you plan to hire employees or if your LLC has multiple members.
You can obtain an EIN from the IRS for free by applying online: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
6. Register for Connecticut Taxes
Depending on the nature of your business, you may need to register for certain state-level taxes.
To determine your tax obligations and register your LLC, you can visit the Connecticut Department of Revenue Services website: https://portal.ct.gov/drs
7. Obtain Necessary Licenses and Permits
Certain types of businesses in Connecticut may require additional licenses or permits to operate legally.
The Connecticut Licensing Info Center can help you determine the licenses and permits specific to your business type: https://www.ct.gov/licensing/
8. Comply with Ongoing Requirements
After forming your LLC, it’s important to meet ongoing compliance requirements to maintain your LLC’s good standing.
This includes filing an annual report with the Connecticut Secretary of State and keeping your business information up to date.
Forming an LLC in Connecticut involves several steps, and it’s crucial to follow the process accurately to ensure a smooth and legally compliant establishment.
If you’re unsure about any step or require professional assistance, consulting with a business attorney or a professional LLC formation service can provide you with the guidance you need.
Remember, this guide is meant to provide general information and shouldn’t be considered legal advice.
Extended Guide
This guide to starting a Connecticut LLC provides step-by-step instructions for filing formation documents and obtaining tax IDs.
Overview
LLCs are the most popular business structure. This is because they are easy to start, inexpensive to set up and maintain, and allow owners flexibility.
The legal form of your LLC creates your business, limits personal liability, gives you tax flexibility, and establishes your business.
As you move through this process, you will be guided step-by-step.
Step-by, step Connecticut LLC instructions
Check Name Availability
Your LLC’s legal title may not conflict or be used in conjunction with another registered name. A name search can help you find out if your name is available.
Name Search Connecticut Secretary of state – Commercial Recordings Section
Name Reservation Optional Suffix: “(a). Limited liability companies must have the name “limited liability company” or an abbreviation such as “L.L.C.” “Limited”, may be abbreviated by “Ltd.”; “company” may also be abbreviated by “Co .”.”
Place an appointment for a registered agent
Before you are able to file for your Connecticut LLC formation, you will need a Connecticut registered agent. Register agents are the business’ legal appointees who receive government notices and lawsuits.
The state law requires that every LLC has a registered representative. The Connecticut Secretary of state – Commercial Recording Division designates the registered agent.
Our registered agent service is reliable and meets this requirement. You get:
- Documents available the same day from our local office at Glastonbury
- Access to state forms online immediately. Please include our address and, if necessary, our signature
- Annual fees start at $89 and go up to $99 in each state. There are no additional charges
Connecticut Certificates of Formation
Fill out the articles of incorporation to establish your limited liability company.
Agency: Connecticut Secretary of state – Commercial Recording Department Form:
Certificate of OrganizationFiling Method Mail, fax, . Agency Fee $120 + optional $50 expedite charge Turnaround: ~3-5 business days. $50 expedite cost – 24 hours Law:
2011, Connecticut Code, Chapter 603: Connecticut Limited Liability Company ActEstablish Company Records
Your LLC must keep accurate records and books. Your LLC’s original articles of organization will be the first document you keep. Your LLC will create many other official documents such as:
- Minutes of the meeting
- Operating agreement
- EIN verification letter
- Amendments to and other filings made during the LLC’s lifetime
You must create the Operating Agreement
It is possible to use a template to draft an Operating Agreement. This document will serve as the governing document. It specifies the legalities of the LLC’s operation, such the annual meeting and the procedure for submitting it to creditors. The agreement will then be approved by you at your organizational meeting.
Organize the Organizational Meeting
The first meeting between members of an LLC is called the organizational meeting. In order to hold this meeting, you’ll need your operating agreements and the filed articles. Keep the minutes of this meeting.
Get a federal employer identification number (EIN).
EIN is required if the LLC will have more than one owner or hire employees. EIN is often required to open a bank or other financial account.
Agency: Internal Revenue Service Form:
IRS SS-4Filing Method Mail, phone and fax. online. IRS fee $0 Turnaround: Online immediately, or by phone. By fax, it takes 4 business working days. 4-6 weeks by mail Notes: The IRS website cannot be accessed outside of certain hours. Print your EIN before you close the session. Additional guidance is available at IRS Publi 1635: Understanding the EIN. Connecticut State Tax Identification Nos/Accounts
Connecticut offers a centralized state tax registration form. The Connecticut Tax Registration number will be provided to you. State business taxes include corporation, business entity, sales and use taxes, withholding income tax and motor vehicle fuels tax.
- Send it to:
State of Connecticut – Department of Revenue Services
- Form:
Reg-1: Application for business tax registration- Instructions:
Instructions on Form REG-1- Guidance:
IP2006(11),: Getting started in business – Understanding Connecticut taxes- Filing Method
- Mail, in person or Online
- Fee:
- Check out the licensing and permit fee schedule . A sales tax permit costs $100
- Turnaround:
- Online, it takes 15-20 days. 2-3 Weeks by post Directly in-person
Consider Electing S-Corp and C-Corp taxation
Your LLC will be subject to passthrough taxation by default. However, most LLCs continue to keep this tax type. Some LLCs are eligible to elect S-Corp or C-Corp Tax Treatment.
- S-Corp can help owner-employees making more than $75,000 a year save on self-employment income taxes.
- C-Corps face double taxation. First, the corporation pays income taxes and then the members pay distribution taxes. C-Corps offer low tax rates on retained earnings, which can be beneficial if you have more than $250,000 in profits per owner.
Get business licenses and permits
It is necessary to obtain the required licenses and permits in order for your business to be legally operated. It’s easy to search for the type of your business and whereabouts using the Small Business Administration Business License & Permit lookup tool.
Connecticut Business License
NOT REQUIRED
Connecticut does NOT require licensure as a general business license.
Connecticut does have a local business license but not a state-level license.
To Maintain Your LLC, You Need to File Ongoing Filings
You must file your federal and state taxes returns.
A lot of states also require businesses to file an annual return to maintain good standing before the secretary. You can see the table below to find out if Connecticut LLCs must file an annual return.
Domestic Connecticut Corporation Annual Report:
Agency: Connecticut Secretary of state – Commercial Recording division Filing Method
OnlineAgency Fee $150 Due: Annually at the registration anniversary. Law:
Connecticut General States SS33-953.Penalties: No fee. Not in good standing. Notes: - Anybody who is authorized may file.
Connecticut Business Resources
How to Start a Business in Connecticut
Brian Wilson is the content manager and founder of LLC Radar.
Brian grew up in North Texas, just outside of Dallas, and has a bachelor’s degree in business journalism from Southern Methodist University. Since graduating from SMU, Brian has gained over 10 years of experience in business writing for several online publications.
Brian resides in Plano, Texas and he can be reached by email: info@llcradar.com
Phone: 972-776-4050