How To Start An LLC in Connecticut: Free Guide (2024)

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If you are looking for the best guide on how to start an LLC in Connecticut, stop scrolling and read this. 

Starting an LLC in Connecticut requires legal processes to keep your business working. 

So, in this article, we will provide you with a complete guide on how to start an LLC in Connecticut with ease. 

How to Start an LLC in Connecticut

Starting an LLC in Connecticut requires filing a Certificate of Organization with the Connecticut Secretary of State.

This process costs $120 and can be done online, by mail, or in person. 

Meanwhile, the Certificate of Organization is vital as it is the legal document that officially establishes your Connecticut limited liability company.

Steps to Start an LLC in Connecticut

Follow the steps below to form your LLC in Connecticut easily. 

  • Name Your LLC
  • Choose a Registered Agent
  • File the Certificate of Organization
  • Create an Operating Agreement
  • Get an EIN

However, if you find these processes daunting, you can seek professional services. 

Name Your LLC

The first thing you should do is to give a delectable business name to your LLC. 

As much as you would like to use a name you so desire, you must be sure that another business hasn’t used the name. 

So, if you find the name available, you have to reserve the name. 

Here are a few guides on how to choose a name for your LLC in Connecticut 

  • Your business name must include ability company” or its abbreviations (LLC or L.L.C.). 
  • Ensure that your name is distinguishable from any Connecticut limited liability company, corporation, limited partnership, or registered limited liability partnership business name. 
  • Ensure the name you desire isn’t already taken by doing a Business Entity Search on the Connecticut Secretary of State’s website.
  • Your business name cannot contain words used to name a government agency (i.e., State Department, CIA, FBI, Treasury, etc.)
  • Also, it can’t contain certain restricted words like bank, lawyer, attorney, credit union, etc.
  • Ensure to Reserve the name once you find the availability: You must complete the Name Reservation Request for Domestic Entities form at least two weeks before registration or reserve your business name when completing the online LLC registration.
  • Consider if the URL is available: Check online to see if your business name is known as a web domain. If it is, you may want to buy the URL to prevent others from acquiring it.

Choose a Registered Agent in Connecticut

A registered agent is an individual or business entity responsible for obtaining basic tax forms, legal documents, a notice of lawsuits, and official government correspondence on behalf of your business. 

Your LLC in Connecticut required you to nominate a registered agent. 

Your registered agent must be a resident of Connecticut or a corporation, such as a registered agent service, approved to transact business in Connecticut. 

However, you may elect an individual within the company, including yourself, to stand as a registered agent. 

File Your Certificate of Organization

A Certificate of Organization is required by the Connecticut Secretary of State.

You can apply for it online, by mail, or in person.

If you file online, you’ll pay a nonrefundable fee of $129 to the Connecticut Secretary of State.

You can file by mail or person at:

Mailing Address:

Business Service Division, Connecticut Secretary of the State

P.O. Box 150470

Hartford, CT 06115

Office Address:

Business Service Division, Connecticut Secretary of the State

30 Trinity St.

Hartford, CT 06106

Create an Operating Agreement

An operating agreement is a legal document establishing the ownership and operating procedures of an LLC.

Even though an operating agreement is not required for a Connecticut LLC, it’s recommended to have one. 

In addition, a detailed operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

Get Your EIN

An EIN stands for Employer Identification Number.

It is a nine-digit number assigned by the Internal Revenue Service (IRS) to help specify businesses for tax purposes. 

However, it is practically a Social Security number for a business which can be referred to as Federal Tax Identification Number (FTIN).

An EIN is required if you must: 

  • Open a business bank account
  • File and manage Federal and State Taxes
  • Hire employees

You can get your EIN by applying online or by sending mail to:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax: (855) 641-6935

You can do this at no cost.

What To Do After Forming an LLC in Connecticut

Having learned how to start an LLC in Connecticut, it is essential to protect your business.  

You can protect your business by carrying out some legal steps and separating your personal and business assets to avoid the risk that your LLC is sued. 

You can also follow these steps below to protect your LLC in Connecticut:

Opening a Business Account

You may have to separate your personal assets from your company’s assets, which is necessary for personal asset protection.

This also makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you separate all business expenses for end-of-year tax purposes.

It also helps you build your business credit score, which is essential for getting a line of credit or business loan. 

In addition, it allows you to keep track of department expenses by issuing multiple cards to your employees.

Hire a Business Accountant

To prevent your business from overpaying on taxes while helping you avoid penalties, fines, and other costly tax errors, you may have to hire a business accountant. 

Doing this makes bookkeeping and payroll easier, giving you more time to focus on your growing business 

Furthermore, it helps you manage your business funding more effectively, discovering areas of unforeseen loss or extra profit

Get Your Business Insurance

Getting business insurance helps you manage risks and focus on growing your LLC. 

The common types of business insurance are:

General Liability Insurance: This broad insurance policy protects your business from lawsuits. 

Professional Liability Insurance: This business insurance is for professional service providers (consultants, accountants, etc.) and covers malpractice claims and other business errors.

Workers’ Compensation Insurance: This type provides coverage for employees’ job-related illnesses, injuries, or deaths. In Connecticut, businesses with one or more employees, excluding officers and LLC members, must have workers’ compensation insurance.

Create Your Business Website

To legitimize your business, you need to create a business website. 

Every business needs a website to avoid missing out on a large percentage of potential customers and revenue.

Send Out a Press Release

To provide publicity, you need to do press releases to promote your business. 

This is because they are also one of the most cost-effective strategies to establish your brand presence on the web. 

Also, they provide publicity, improve your website’s search engine optimization (SEO), drive more customers to your website, and have long-lasting benefits.

Keep Your Business Licenses and Permits

You must comply with federal, state, and local government regulations to operate your business in Connecticut. 

You must obtain and keep your business licenses and permits from your state. 

For instance, for a restaurant’s LLC, you must obtain permits like; need health permits, building permits, signage permits, etc.

However, the details of business licenses and permits vary from state to state. 

The fees also vary depending on what sort of license you are seeking to obtain.

Tax Filing Requirements

Depending on the nature of your business, you may have to register for one or more forms of state tax.

You must register for sales tax if you sell a physical product; you’ll typically need to register for a seller’s permit online through the State of Connecticut website.

Some of the tax filing requirements are: 

Connecticut Sales Tax

This is required if you are selling a physical product.

You must register for a seller’s permit through the Connecticut Department of Revenue Services.

Meanwhile, the certificate allows a business to collect sales tax on taxable sales.

Employee Tax

If you have employees in your LLC in  Connecticut, you must register for Unemployment Insurance Tax with the Connecticut Department of Labor Tax and Benefits System. 

Also, the Employee Withholding Tax with the Connecticut Department of Revenue Services.

File Your Annual Report

You can file an Annual Report Online with the online Connecticut Secretary of State for a nonrefundable fee of $80.

The due date is usually March 31 of every year.

Note: Any annual report received after March 31 will give your LLC a “Not in Good Standing” status.

Also, Connecticut may dissolve your LLC after one year for failure to file an annual report.

Hiring Employees

If you plan to hire employees for your LLC in Connecticut, you need to abide by the law and follow these steps:

You must: 

  • Verify that new employees have US work permits. 
  • Report employees as “new hires” to the State
  • Provide workers’ compensation insurance for employees
  • Withhold employee taxes
  • Print workplace compliance posters and place them in visible areas of your workspace

How to Start A Foreign LLC in Connecticut

If you have an existing LLC and you want to extend the business to Connecticut, you need to register as a foreign LLC. 

This is because forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in Connecticut, you must register as a foreign LLC. This can be done online.

You can do this by 

  • Fling online with the Connecticut Secretary of State for a nonrefundable fee of $120.
  • Filing by Mail or In Person
    • Mailing Address:

Commercial Recording Division

Connecticut Secretary of the State

P.O. Box 150470

Hartford, CT 06115

  • Office Address:

Commercial Recording Division

Connecticut Secretary of the State

30 Trinity St.

Hartford, CT 06106

How to Obtain a Certificate of Good Standing in Connecticut

In Connecticut, the certificate of good standing is also called the certificate of legal standing. 

With a certificate of good standing, your business is verified that it was legally formed and adequately maintained in Connecticut. 

Meanwhile, you can order a Connecticut LLC Certificate of Good Standing online for free. 

You might need to get your certificate of legal standing if: 

You will seek funding from banks or other lenders

You might form your business as a foreign LLC in another state

You will obtain or renew specific business licenses or permits

You can order a Certificate of Legal Existence online or by mail.

Online: Request a Certificate Online Through the Connecticut Secretary of State.

Mail or person: Request a Certificate by Mail or In-Person at a nonrefundable fee of $50 via: 

Mailing Address:

Commercial Recording Division

Connecticut Secretary of State

P.O. Box 150470

Hartford, CT 06115-0470

Office Address:

Commercial Recording Division

Connecticut Secretary of the State

30 Trinity St.

Hartford, CT 06106

Conclusion

As simple as filing an LLC in Connecticut is, you will follow simple guides and requirements to get your LLC running in Connecticut. 

The steps have been simplified and explained in this guide on how to start an LLC in Connecticut. 

We hope you find the guide helpful!

Don’t forget to share! 

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