Connecticut’s beautiful landscapes and delicious New England cuisine attract entrepreneurs. Whether starting small or expanding statewide, forming a Connecticut LLC protects personal assets and simplifies taxes compared to corporations. This guide walks you through the process.
Step 1: Name your Connecticut LLC
Step 2: Choose a Registered Agent
Step 3: File an Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an Employer Identification Number
Step 6: Pay Your State Tax Obligations
Step 1: Name your Connecticut LLC
If you’ve been considering starting a business in Connecticut, you likely have an LLC name in mind. Choosing a memorable and unique name helps customers and partners connect with your business. Connecticut has specific naming requirements:
- Include “Limited Liability Company” or LLC.
- Ensure it’s distinct from other entities in CT.
- Avoid confusing phrases with government entities.
After finding your ideal name, check its availability in the business entity database.
Additional considerations:
Reserve your name: You can reserve your name with the Connecticut Secretary of State. Start by confirming its availability in the business name database. You can reserve the name for up to 120 days and a $60 filing fee if available.
Website domain: Even if you need more time to prepare a webpage, securing your domain name is wise. Before finalizing your LLC name, check if your preferred web address is available and fits your business.
Step 2: Choose a Registered Agent
When starting an LLC in Connecticut, Choosing a registered agent is essential. This person will handle legal documents and state mail for your LLC. According to Connecticut LLC regulations, the agent must be a resident of Connecticut or an authorized business entity within the state. Although you can update the registered agent’s address later, choosing someone reliable is crucial. Many LLCs select one of their members as the registered agent for convenience. Alternatively, a registered agent service or an attorney can simplify this process, which allows LLC members to focus on their business tasks. Additionally, having an attorney as your registered agent can ensure prompt legal help and smoother communication.
Step 3: File an Articles of Organization
When starting an LLC in Connecticut, All domestic must submit an Articles of Organization to the Secretary of State of Connecticut.
The Articles of Organization should include:
- Name and address of the LLC’s organizer.
- The LLC’s name and address.
- Address name and signature of the agent.
- Name and address of at least one manager or member.
- The LLC’s email address.
- Signature of the organizer.
While you can download and complete these documents later, Connecticut offers the convenience of online registration. If you prefer to mail your paperwork, send it to the Business Services Division, Connecticut Secretary of the State, P.O. Box 150470, Hartford, CT 06115-0470. Alternatively, you can submit documents in person.
Step 4: Create an Operating Agreement
While not required, having a Connecticut LLC operating agreement is common among successful LLCs. This agreement outlines how your LLC operates and defines the roles and shares of its members. A typical LLC operating agreement includes the following:
- LLC’s name and DBA, if applicable
- Business address
- Anticipated duration
- List of LLC members and their ownership percentages
- Name and address of the registered agent
- Business operations
- Distribution model for profits and losses
- Procedures for admitting and removing members
- List of business decisions requiring member votes and voting procedures
- Duties and responsibilities of LLC members
- Policies on member indemnification and liability
Step 5: Get an Employer Identification Number
All newly formed LLCs in the United States, except for single-member LLCs, must get an Employer Identification Number from the Internal Revenue Service. This nine-digit EIN works like a business’s social security number and is crucial for paying taxes, opening bank accounts, and more.
Step 6: Pay Your State Tax Obligations
After following the steps above, you must register with the Connecticut Department of Revenue Services (DRS). You must register online or by filling out Form REG-1, Business Taxes Registration Application. Connecticut also has a separate $250 Business Entity Tax (BET) due every two years. You can find more details on the Business Entity Tax webpage.
LLC State Guides
FAQs:
How much does it cost to start an LLC in Connecticut?
Both domestic and foreign entities must pay a fee of $120 to establish their LLCs.
Do Connecticut LLCs need to submit yearly reports?
Yes. All LLCs must file an annual report annually and pay an $80 filing fee.
How can I amend my Connecticut LLC documents?
If you find errors, you can submit a Statement of Correction to the Secretary of State. This process incurs a fee of $100.
