How to Start an LLC in Connecticut | 2024 Guide

Steve Bennett
Business Formation Expert  |   Fact Checked by Editorial Team
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Start a LLC in Connecticut

How to Start an LLC in Connecticut: If you’re looking to launch a business in Connecticut, starting a Limited Liability Company (LLC) may be the right choice for you. An LLC provides personal liability protection for its owners while giving them flexibility in managing and taxing the business. This guide provides a step-by-step process for starting an LLC in Connecticut. From choosing a unique name to registering with the state and obtaining necessary licenses and permits, Webinarcare Editorial Team will walk you through setting up your new business entity. So grab a pen and paper, and let’s get started!

What is a Limited Liability Company?

A Limited Liability Company (LLC) is a type of business entity that combines a corporation’s limited liability protection with a partnership’s tax benefits. LLCs are popular among small business owners for their flexibility and ease of formation. In Connecticut, an LLC must have a unique name and file Certificate of Organization with the Secretary of State. Depending on their business needs, LLCs may also elect to be taxed as a corporation or an S-corp. Owners of an LLC, called members, are not personally liable for the company’s debts and losses, and the company’s profits and losses are passed through to the member’s personal tax returns. This makes an LLC an attractive option for those seeking personal liability protection and simplified taxation.

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Steps on How to Start an LLC in Connecticut

To form an LLC for your business, you must follow the guidelines that include naming your LLC, hiring a Resident Agent, filing your Certificate of Organization, creating your LLC operating agreement, getting an employer identification number, opening a bank account and getting business licenses and permits.

Step 1: Name your LLC in Connecticut

After you have decided on the idea to form an LLC in Connecticut, deciding the name for your LLC is significant. There is a complete guide on LLC name guidelines for you to have a proper LLC business name. Here are some regulations you must follow while naming your LLC,

  • The name should not be confused with a government entity.
  • The name should be unique.
  • The name should be available to use.
  • Any other business does not use the name.
  • The new name must include “LLC” if it is a limited liability company.

In Connecticut, if you do not wish to file your LLC right away but want to hold the name that you have decided on, then you can reserve your LLC name for 120 days. You must file a name reservation application in Connecticut Secretary of State to keep the name.

Recommended: We recommend a professional service that can offer you unlimited name search, trademark and copyright registration at a reasonable price. We recommend using –

LegalZoom($0 + State Fees for LLC Formation)

You can register your business under a different legal name if your preferred name isn’t available. Once you have chosen a name, you can submit an application for filing Connecticut DBA (doing business as). In this manner, you can choose any name you desire for your business. A DBA allows a company to operate under the name of the person or entity who owns it. If you have decided to file for a DBA, you can file it in one method, by mail. However, before filing a DBA, you should know that you need to renew your DBA from up to Indefinite, which costs around $10.

Step 2: Hire a Resident Agent in Connecticut

Hiring a Resident Agent in Connecticut is a must since a Resident Agent is a person or business entity responsible for receiving important legal documents on behalf of your Connecticut LLC. Most states require you to designate a Resident Agent when forming your LLC.

The qualifications of a Resident Agent vary depending on the jurisdiction. Still, generally, a Resident Agent must meet the following criteria:

  • Availability: A Resident Agent must be available during regular business hours to receive and process legal documents and official correspondence.
  • Physical Address: A Resident Agent must have a physical street address within the state where the LLC is registered. This address, known as the registered office, cannot be a P.O. Box.
  • Residency or Authorization: For individuals serving as Resident Agent, they must be residents of the Connecticut where the LLC was formed. A business entity acting as a Resident Agent must be authorized to do business within that state.
  • Age: A Resident Agent must be at least 18 years old.
  • Good standing: A Resident Agent should not have any legal or financial issues that impede their ability to fulfill their duties.

Choosing a reliable and responsible Resident Agent is essential, as failure to receive and respond to legal documents can seriously affect your business. Some businesses use professional Resident Agent services to ensure compliance and proper handling of legal matters.

However, if you would like to have an easier process in filing the necessary documents, you can get Connecticut Resident Agent Services.

Step 3: File your Certificate of Organization in Connecticut

The Certificate of Organization for an LLC is an important document to start your limited liability company (LLC). Connecticut Certificate of Organization is a simple document that contains the business name and address as well as the name and address of the person who received lawsuits on behalf of the organization.

Here are the guidelines and specific requirements in filing your Certificate of Organization in Connecticut.

1. Obtain the Necessary Forms: Visit the Connecticut’s business filing office website, usually the Connecticut Secretary of State’s office, to download the required forms or file online.

2. Provide the Required Information: Fill in the necessary details in the form, which typically include:

  • The name of your LLC (must include an LLC designator such as “LLC,” “L.L.C.,” or “Limited Liability Company”)
  • The purpose of your LLC (a general statement or specific business activities)
  • The address of your LLC’s principal place of business
  • The name and address of your registered agent (the person or business entity responsible for receiving legal documents on behalf of your LLC)
  • The management structure of your LLC (member-managed or manager-managed)
  • The duration of your LLC, if not perpetual
  • The names and addresses of the LLC’s organizers or members

3. Sign and File the Form: Submit the completed form in the {state} state office, either by mail, in person, or online. You may mail it at Business Service Division, Connecticut Secretary of the State, P.O. Box 150470, Hartford, CT 06115.

4. Pay the Filing Fee: When you submit your Certificate of Organization, you’ll need to pay a filing fee of $120. Make sure to check and include the correct payment with your submission.

5. Receive Confirmation: After your Certificate of Organization have been filed and processed, you’ll receive a confirmation from Connecticut, typically a stamped and approved copy of the document or a Certificate of Organization.

Recommended: Filing formation papers is easy and hassle-free if you hire a professional service. We recommend using –

LegalZoom($0 + State Fee)

Once you have successfully filed your Certificate of Organization and it has been approved, your Connecticut LLC is officially formed. However, remember to complete additional steps, such as creating an Operating Agreement, obtaining an EIN, and registering for any required licenses and permits.

Step 4: Create Your Connecticut Operating Agreement

An operating agreement is a document that contains all of your company’s organizational details. Drafting an operating agreement in most states is not required. Yet, having one as an internal document is strongly advised. An operating agreement includes information like-

  • About Business
  • Members and management
  • Capital contribution
  • Profit Distribution
  • Change of membership
  • Dissolution

To understand how an operating agreement works, you should check out how to create an operating agreement in Connecticut.

Recommended: Get oprating agreement drafts ready on your table with a help of a professional service. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 5: Get an EIN

After documenting the operating agreement, you should get or request an Employer Identification Number (EIN) in Connecticut. An EIN will serve as the tax ID for your professional corporation. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website.

The application of an EIN in Connecticut can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

In obtaining an EIN for your LLC, you should be aware to ensure that your LLC is eligible for an EIN. You need an EIN if you have employees, operate as a corporation or partnership, or meet other specific IRS criteria. Before applying, gather the required information, including your LLC’s name, mailing address, and the responsible party’s Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). Also, you can apply for an EIN through various methods, including online, by fax, mail, or telephone (for international applicants).

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom($0 + State Fee for LLC formation)

Step 6: Open a Bank Account and Prepare for Taxes

After you have filed for and received your Employer Identification Number, you should open a bank account because you will use this account for yourself, your clients, and your employees.

Your business dealings in Connecticut might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Most banks demand an EIN to create a business bank account for firms other than sole proprietorships. Also, having an EIN makes tax preparation easier. You can anticipate paying employment and corporate taxes with Connecticut LLC.

Opening a bank account is necessary for Connecticut business. If you are still wondering where to open an account in your Connecticut, you should check the Best Bank for Small Business in Connecticut.

Step 7: Get a Business and License Permit

You must get a business license in Connecticut before establishing your LLC. A business license is a legal document granted by a state government body that permits you to conduct business within the area under its jurisdiction. The price of business licenses and permits in Connecticut ranges from $50 – $300. If there is a requirement for a specific license or city-based permit, you must inquire with the Connecticut Secretary of State.

Cost to Form an LLC in Connecticut

Even if you have a business name and structure in mind, you should consider whether you can afford the costs of forming an LLC in Connecticut. Certificate of Organization costs around $120. The initial filing fee is $120, and the annual fee is $80.

If you forget to pay the annual fee for your Connecticut LLC, you will have a penalty of $50. However, you can check the Connecticut LLC Cost for additional information.

Advantages of Creating Connecticut LLC

Even though some people decide on what to do with their businesses, some choose to put it in their own individual name, while others still choose to set it up via LLC in Connecticut. Important benefits will help you set up an LLC in Connecticut.

  • Pass-Through Taxation: The pass-through structure will make the company not pay twice the tax. Most start-ups and entrepreneurs in Connecticut apply for an LLC because of this structure. Pass-through taxation refers to how income and losses from an LLC (Limited Liability Company) are passed through to its members (owners) for tax purposes rather than being taxed at the business entity level. This means the LLC does not pay federal income taxes; the members’ profits and losses are allocated based on their interests. Each member then reports their share of the LLC’s income or losses on their personal tax returns and pays taxes at their individual tax rates.
  • Ownership Flexibility: If you need sole and primary control over your company’s operations, a sole proprietorship will allow you to do so. If you apply for an LLC in Connecticut with flexibility, you will have default rules set by law and need an operating agreement.
  • Personal Liability Protection: Personal Liability Protection protects your business from damage, debts, or legal obligations. In personal liability protection, the company’s profits and earnings will stay as is even if your company is about to be sued. This protection of having an LLC in Connecticut can also be extended to the company’s properties and assets. Many start-up companies will benefit from this since most are starting to build a company. Even if liability exists, the LLC in Connecticut will protect its assets.

FAQs

How do I start an LLC in Connecticut?
You can start an LLC in Connecticut by filing Articles of Organization with the Secretary of State.
How much does it cost to start an LLC in Connecticut?
The filing fee forArticles of Organization is $120.
What is the process for forming an LLC in Connecticut?
The process for forming an LLC in Connecticut involves filing Articles of Organization with the Secretary of State.
How long does it take to form an LLC in Connecticut?
The process to form an LLC in Connecticut usually takes 1-2 weeks.
Do I need to have a registered agent in Connecticut?
Yes, every LLC in Connecticut is required to have a registered agent.
Can I be my own registered agent in Connecticut?
Yes, you can be your own registered agent in Connecticut.
What are the requirements for being a registered agent in Connecticut?
A registered agent in Connecticut must have a physical address located in the state.
What is the role of a registered agent in Connecticut?
The role of a registered agent in Connecticut is to receive legal documents and official state correspondence on behalf of the LLC.
Do I need a business license to start an LLC in Connecticut?
Depending on the nature of your business, you may need a state or local business license.
What taxes do LLCs in Connecticut need to pay?
LLCs in Connecticut are required to pay state and federal income tax.
How many members are required to form an LLC in Connecticut?
An LLC in Connecticut can be formed with just one member.
What is the liability protection for members of an LLC in Connecticut?
Members of an LLC in Connecticut can enjoy limited liability protection for business debts.
Do I need to file an operating agreement with the state of Connecticut for my LLC?
No, an operating agreement does not need to be filed with the state, but it is highly recommended to have one.
Can an LLC in Connecticut be taxed as an S-Corporation?
Yes, an LLC in Connecticut can elect to be taxed as an S-Corporation.
Can a foreign LLC do business in Connecticut?
Yes, a foreign LLC can do business in Connecticut by registering with the Secretary of State.
Can an LLC in Connecticut be converted to a corporation?
Yes, an LLC in Connecticut can be converted to a corporation.
How often do LLCs in Connecticut need to file annual reports?
LLCs in Connecticut are required to file an annual report every year.
How much is the annual report fee for LLCs in Connecticut?
The annual report fee for LLCs in Connecticut is $80.
How do I dissolve an LLC in Connecticut?
To dissolve an LLC in Connecticut, you must file a Certificate of Dissolution with the Secretary of State.
Are there any special requirements for naming an LLC in Connecticut?
The name of an LLC in Connecticut must be unique and not too similar to any other entity registered in the state.
Can I reserve a name for my LLC while I prepare my business plan?
Yes, you can reserve a name for your LLC by filing a Name Reservation request with the Secretary of State.
Can I change the name of my LLC in Connecticut after it’s been formed?
Yes, you can change the name of your LLC in Connecticut by filing a Certificate of Amendment.
Do I need an EIN for my LLC in Connecticut?
Yes, an EIN is required for LLCs in Connecticut for tax purposes.
How do I obtain an EIN for my LLC in Connecticut?
You can obtain an EIN for your LLC in Connecticut by filing an application with the Internal Revenue Service.
Can I operate multiple businesses under a single LLC in Connecticut?
Yes, under certain conditions, a single LLC in Connecticut can operate multiple businesses.
Can I create a series LLC in Connecticut?
No, Connecticut does not currently recognize series LLCs.
What are the initial reporting requirements for LLCs in Connecticut?
LLCs in Connecticut must file an Initial Report with the Secretary of State within 30 days of formation.
Can I change my LLC’s registered agent after it’s been formed in Connecticut?
Yes, you can change your LLC’s registered agent in Connecticut by filing a Change of Registered Agent request.
Is there an online option for filing LLC documents in Connecticut?
Yes, you can file LLC documents online using the Connecticut Secretary of State’s web portal.
What is an LLC in Connecticut?
An LLC in Connecticut is a limited liability company.
How much does it cost to form an LLC in Connecticut?
It costs $120 to file articles of organization for an LLC in Connecticut.
Can a single person form an LLC in Connecticut?
Yes, a single person can form an LLC in Connecticut.
Do I need a registered agent for my LLC in Connecticut?
Yes, every LLC registered in Connecticut needs a registered agent.
Where do I get a registered agent for my Connecticut LLC?
You can hire a registered agent or act as your own.
What are the naming requirements for an LLC in Connecticut?
The name must include “Limited Liability Company” or “LLC”.
Is a business license needed to form an LLC in Connecticut?
It depends on the type of business you are starting; you may or may not need a business license.
Do I need a business plan to form an LLC in Connecticut?
No, you don’t need a business plan to form an LLC in Connecticut.
Can I form an LLC online in Connecticut?
Yes, you can form an LLC online using the Connecticut Secretary of State’s website.
What is a Certificate of Organization, and do I need one for my Connecticut LLC?
A certificate of organization is the document filed with the Secretary of State when forming an LLC in Connecticut.
How often do I need to file an annual report for my Connecticut LLC?
Every LLC registered in Connecticut must file an annual report with the Secretary of State.
How much does it cost to file an annual report for my Connecticut LLC?
It costs $20 to file an annual report for an LLC in Connecticut.
Can I change the management structure of my Connecticut LLC later?
Yes, you can easily change the management structure of your LLC later on.
Do I need to have a physical address to form an LLC in Connecticut?
Yes, you need a physical address in Connecticut to form an LLC.
Can I use a PO Box as the physical address for my LLC in Connecticut?
No, you cannot use a PO Box as the physical address for your LLC in Connecticut.
How much personal liability protection will I have with an LLC in Connecticut?
An LLC in Connecticut provides members with limited liability protection.
Can I use an out-of-state registered agent for my Connecticut LLC?
No, an out-of-state registered agent cannot be used for a Connecticut LLC.
Can I form a Connecticut LLC as a non-US citizen?
Yes, foreign nationals can form an LLC in Connecticut.
How do I dissolve my LLC in Connecticut?
You can dissolve your LLC in Connecticut by filing articles of dissolution.
Which agency oversees LLCs in Connecticut?
LLCs in Connecticut are overseen by the Secretary of State.
Can I operate multiple LLCs in Connecticut?
Yes, you can operate multiple LLCs in Connecticut.
How do I reserve a business name in Connecticut for my LLC?
You can reserve a business name in Connecticut through the Secretary of State’s office.
How long does a Connecticut LLC formation last?
A Connecticut LLC formation lasts forever unless it’s dissolved.
What is a series LLC in Connecticut?
A series LLC in Connecticut is a special type of LLC that consists of individual series of LLCs.
Can Connecticut LLCs take advantage of pass-through taxation?
Yes, Connecticut LLCs can take advantage of pass-through taxation if it meets certain requirements.
How long does it take an LLC in Connecticut to be approved?
It typically takes 4-6 weeks for an LLC in Connecticut to be approved.

Also Read

How Fast Can I Form an LLC in Connecticut

The good news is that forming an LLC in Connecticut can be a relatively fast and straightforward process. However, the actual timeline for forming an LLC will vary depending on several factors, including the accuracy and completeness of your submission, the workload of the Connecticut Secretary of State’s office, and whether you choose to use expedited filing services.

To start the process of forming an LLC in Connecticut, the first step is to choose a unique business name that complies with state regulations. Once you have selected a name, you will need to file Articles of Organization with the Connecticut Secretary of State’s office. This document typically requires basic information about your business, such as its name, business address, registered agent, and a description of the business purpose.

After submitting the Articles of Organization and paying the required filing fee, the Connecticut Secretary of State’s office will review your submission to ensure that it complies with all state regulations. If there are any errors or missing information in your submission, the process may be delayed as you will need to correct those issues before your LLC can be officially formed.

The timeline for forming an LLC in Connecticut can range from a few days to a few weeks, depending on the workload of the Secretary of State’s office. If you need your LLC to be formed quickly, you may choose to use expedited filing services, which can shorten the processing time significantly for an additional fee.

While forming an LLC in Connecticut may not be an instantaneous process, it is worth taking the time to ensure that all the necessary steps are completed accurately. Rushing through the process could result in costly mistakes that may cause delays or legal issues down the line.

Overall, while it may be tempting to rush through the process of forming an LLC in Connecticut, it is essential to take the time to complete each step accurately to ensure that your business is operating legally and efficiently. By following the necessary steps and being patient with the process, you can successfully form an LLC in Connecticut in a relatively short amount of time.

Conclusion

In conclusion, starting an LLC in Connecticut is a strategic choice for entrepreneurs seeking a flexible, straightforward business structure with limited liability protection. By following the essential steps, including choosing a business name, filing Certificate of Organization, appointing a Resident Agent, creating an Operating Agreement, obtaining an EIN, and securing the necessary licenses and permits, you can successfully establish your LLC. This business structure offers numerous advantages, such as pass-through taxation and ownership flexibility, making it an attractive option for small business owners looking to grow and protect their ventures. As always, consult legal and business professionals for guidance specific to your situation and state requirements.

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