How To Start An LLC In Connecticut 2023?
Creating a Connecticut LLC can be a smart way to protect personal assets, get more out of your business income, and enjoy more flexibility if your business entity has more than one member.
However, starting a Connecticut limited liability company can feel challenging if you’ve never gone through it. That’s why we’ve created this guide. It covers everything you need to know about creating an LLC in Connecticut that will comply with both the Internal Revenue Service and the Connecticut Secretary of State.
So, without further delay, keep reading to learn what it takes to get a Connecticut LLC certificate that the Connecticut Secretary of State will approve for years to come.
6 Basic Steps To Start An LLC In Connecticut 2023
- Choose a name for your LLC
- Choose a registered agent
- File articles of organization
- Create an LLC operating agreement
- Obtain an EIN
- Annual Tax
How To Start An LLC In Connecticut?
If you’re ready to get started with your new LLC, then here are the steps that you’ll need to take to make it happen.
Choose A Name For Your LLC In Connecticut
First; you’re going to need a business name that complies with the Connecticut LLC naming guidelines. There’s more detail on what those are in the following sub-sections.
Naming Rules In Connecticut
You can learn more about the naming rules in Connecticut here. The main ones are that you have to have some variation of LLC in your name and the business name you choose can’t be easily confused for a government agency like the FBI or some other C corporation.
Searching Available Name In Connecticut
Once you have a business name idea and you’re sure it complies with state law, the next step is to make sure no one else is using it. You can conduct this search here. If your name doesn’t pop up in the search, then your LLC members are free to proceed with paying the filing fee and completing the revenue services registration process.
Choose A Registered Agent In Connecticut
Now, it’s time to pick a Connecticut registered agent to comply with local government regulations. If you’re looking for business insurance, a business accountant, or even a business address for your company, then consider combining that with your search for a registered agent.
Most companies that offer help with things like business assets, business expenses, and even self-employment taxes also provide registered agent support to those whom they help start an LLC. You may even get this for free if your single-member LLC hires them for another service.
File Organizational Paperwork With The State
At this point, you’re ready to file your certificate of organization with the state. This document tells the state how your business is organized so that regulators know how to interpret your annual report, sales tax information, and business licenses, as well as your business bank account and employer identification number.
Prepare an LLC Operating Agreement
Sending in your LLC operating agreement is the next part of this process. This document should include all of your LLC members – except for single-member LLCs – and will often be used for tax purposes, such as income tax, business transactions, and getting a business credit card, so take your time with it.
Obtain An EIN For Your LLC In Connecticut
At this point; you’re ready to get a federal employer identification number. You need this to collect sales tax, and state taxes, hire employees, and potentially even get business insurance along with an LLC bank account.
Finally, all that’s left to do is to make sure that you file an annual report every year and always pay things like your biennial business entity tax on time. As long as you do this, your business licenses should never be at risk.
What Is An LLC?
LLC is an acronym that stands for limited liability company. It’s one way that business entities can operate in the state alongside corporations and sole proprietorships. There are some pros and cons to filling out a Connecticut LLC operating agreement and running your company as an LLC in Connecticut, which we’ll cover in later sections.
What Is An LLC In Connecticut?
If you want to create an LLC, then you have to pick a state to file the paperwork in to do so. You need to have a registered office address in that state for compliance with the Internal Revenue Service and Connecticut Secretary of State.
That’s why if you’re going to be running a business in this state, then filing with the Connecticut Secretary of State and paying the Connecticut business entity tax makes the most sense. Otherwise, you would have to hire a registered agent in another state and jump through hoops with your operating agreements, certificate of organization, and business bank account.
Requirements To Form An LLC In Connecticut
LLC owners who wish to start Connecticut LLCs need to comply with a few requirements set out by the Connecticut Secretary of State to do so. Here are the main ones.
Appoint A Registered Agent
First; you’re going to need to have a Connecticut registered agent. This is the person responsible for accepting legal and business documents on behalf of your business. The Connecticut Secretary of State mandates that you have one.
You can either be your own registered agent, or you can hire a registered agent service for a nominal fee. Having a reliable registered agent service may get you access to free LLC formation support as well, which is why it’s definitely looking into your options for registered agent services before paying someone to help you launch your Connecticut LLC.
The LLC’s Name Must Be Different From An Existing Business
It’s also important to note that the Connecticut Secretary of State won’t allow you to file an operating agreement or certificate of an organization if you try choosing a name that another Connecticut LLC is already using.
There are some tools you can use to ensure that the business name you choose hasn’t been taken by another Professional limited liability company in the state, which we’ll cover in a later section.
Benefits Of Forming An LLC In Connecticut
Forming a Connecticut LLC can be beneficial to you as an individual or business entity in several ways. Here are the main benefits you can look forward to getting from this.
First, Connecticut LLCs enjoy more favorable tax situations with revenue services. You could save a good amount of money just by filing the paperwork you need with the business service division and IRS website.
Additionally, you’ll enjoy limited liability protection under Connecticut law. This means that you won’t have personal liability in the event of future financial challenges for your Connecticut LLC. This is the main reason why many companies choose to fill out an operating agreement and certificate of organization to become a limited liability company.
Finally, when you submit your operating agreements and become an LLC, you get more flexibility in running your business. Limited liability companies have more favorable profit-sharing and management flexibility than other types of organizations. You may even enjoy some benefits with Connecticut sales tax, legal documents, and annual reports after you file a certificate of organization.
How Much Does An LLC Cost In Connecticut?
There is a filing fee of $120 for Connecticut LLCs that file their certificate of organization and operating agreement paperwork online. In addition to this filing fee, you will also need to pay for annual reports, which are typically $80.
And finally, if you use a professional service like an LLC formation service to create a Connecticut LLC online, they may charge you an additional fee for obtaining your Connecticut certificate of the organization on your behalf.
The Top 2 LLC Services In Connecticut
|Name||ZenBusiness||Northwest Registered Agent|
|Full review||Read full review||Read full review|
|Link||Check Price||Check Price|
ZenBusiness is another great option for companies looking to create an LLC in Connecticut. It also simplifies the process of filling out your operating agreement and completing all of your compliance tasks.
One of the main differences between ZenBusiness and Northwest is that ZenBusiness offers after-hours customer support. That may be helpful depending on when you do the bulk of your business.
Also, this company provides ongoing assistance with things like taxes and accounting, which you may find helpful. And if you choose the right package from them, you should be able to get their LLC formation support for free, after you pay the filing fee.
Northwest Registered Agent
Northwest is a trusted business services company that operates throughout the United States. They have a strong reputation for making it easier for companies in Connecticut and elsewhere to file an operating agreement, pay their filing fee, and become LLCs.
This company can also help you out with registered agent services and other kinds of support. They’ll even work with you on starting your LLC for free if you pay for one of their other services, such as registered agent assistance.
Starting an LLC could be just what your company needs to save on taxes, enjoy greater organizational flexibility, and keep your personal assets safe in the event of financial challenges.
We hope this article has helped you understand everything that goes into the process of launching your LLC in Connecticut. You can absolutely complete all of these steps on your own without paying for anyone’s help.
However, many companies will find it useful to hire one of the companies we’ve covered above. They take you through the creation process in a step-by-step manner, entirely online, and also offer some nice add-on services and resources that be helpful.
Ultimately, the best strategy for your business will come down to your personal preferences and goals. We wish you all the best as you get started with this process.
Frequently Asked Questions (FAQs)
Most people who start a Connecticut LLC do so because they want to run a business without having to put their finances at risk while doing so. This business structure also gives you some advantages with taxes and organizational flexibility.
It costs $120 to file the initial paperwork. After that, you’ll also need to pay $80 per year to file your annual reports, and there may be other fees involved periodically as well.
Yes, you can create your LLC without hiring any professional service for assistance. It may just take you longer to do so.
This is a limited liability company that has been registered in the state of Connecticut. It’s a type of business, just like corporations are.
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- Ct.gov. (2013). Chapter 601 – Business Corporations. [online] Available at: https://www.cga.ct.gov/current/pub/chap_601.htm#sec_33-655.
- Ct.gov. (2023). business. [online] Available at: https://service.ct.gov/business/s/onlinebusinesssearch?language=en_US.
- CT.gov – Business One Stop. (2020). File Annual Report. [online] Available at: https://business.ct.gov/file-annual-report?language=en_US.
- CT.gov – Business One Stop. (2021). Commercial Registered Agents. [online] Available at: https://business.ct.gov/knowledge-base/article/sots/commercial-registered-agents?language=en_US.