LLC in CT – How to Form an LLC in Connecticut [5 Easy Steps]

Forming an LLC (Limited Liability Company) in Connecticut is easy and affordable. The following are few easy steps on how to start an LLC in Connecticut. LLCs form in two ways, domestic or foreign. Suppose you plan to set up an LLC in states other than Delaware; visit How to Start an LLC for a quick list of the states.

Connecticut LLC

How to Start a Connecticut LLC

Suppose you’re planning to invest in some profitable business where you won’t have to put your personal assets at risk. Maybe you have a prospective business or corporation that you want to set up in Connecticut. In that case, forming an LLC in Connecticut is the simplest option for you.

An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. This section gives you a step-by-step guide on How to Start an LLC in Connecticut. 

Step 1: Decide a Name for Your LLC

name llc

If you are to start an LLC in Connecticut, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Take note, however, that any successful business started with coming up with a name. Thus, you have the option to choose a name that complies with the Connecticut business naming requirements. It must also be easily searchable for potential clients.

Why do you need a proper business name?

If you want your LLC to have special identification, your company name is essential. However, many people face many issues by avoiding focus on choosing a business name for their LLC business formation filings.

Here are some of the major benefits of choosing the best LLC names.

  • Helps establish a company’s presence in the market;
  • Creates a new identity that will resemble your LLC;
  • Allows ease in finishing your LLC registration process;
  • You can get the EIN once you have your name registration certificate 
What are the requirements when deciding a name for your LLC? 

name search is vital to make sure your corporation’s name is unique. Check the availability of your name with Business Entity Search on the Connecticut Secretary of State’s website. Reserve the name by filling out the Application for Reservation of Name and send it to Commercial Recording Division. Connecticut Secretary of State P.O. BOX 150470, HARTFORD, CT 06115-0470

  • Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
  • You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
  • As for a business website and your URL name, check if your name is still available for domain use with NameCheap.
Reserve a business domain

Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.

If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.  

Step 2: Assign a Registered Agent in Connecticut

get registered agent

A registered agent for service is your authorized person or business entity that will act or work on your behalf. This person or business will receive significant tax forms, legal documents, a notice of lawsuits, and other official government correspondence in Connecticut. Choosing Connecticut-registered agents for your LLC is required.

Make sure your registered agent has a registered business address or home address in Connecticut. Here are the recommended agents for you:

LLC Service

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These LLC formation services are recommended registered agent service providers as they are authorized to conduct business in Connecticut. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service because they have been in the business for years. 

Step 3: File Certificate of Organization in Connecticut

file formation certificate

A Certificate of Name Reservation is needed to file a Certificate of Organization, as other states call it. You need to make reports of this certificate with the Connecticut Secretary of State, which costs $120. You may file them online or by mail. 

This Certificate of Formation document is a legal form that outlines your business officially. It will indicate details about your LLC, like if it is a member-managed or managers-managed.

Before you start filing your forms, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Connecticut LLC will offer.

How to File Online

Go to the Secretary of State Online Service for an online filing service. Fill out the online form and submit it.

How to File by Mail

If you prefer filing real-life forms for your LLC registration, then you can download the Connecticut Limited Company Certificate of Formation. Read the forms thoroughly and fill them out. It will have to fill, among others,  your name, city, state, zip code, and signature. 

Step 4: Create Your Connecticut LLC Operating Agreement

create operating agreement

An operating agreement is an internal document that legally outlines the proprietorship and operating procedures of your Connecticut LLC. This document is vital as it ensures that all business owners in this state are on the same page regarding how they operate, thus reducing future conflicts. 

Starting an LLC in Connecticut does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve our Connecticut LLC later.

Step 5: Filing a Connecticut LLC EIN

The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter. 

It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for taxation filing and to determine tax classification options.

Mailing Address:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax: (855) 641-6935

Fee: Free

After Starting your Connecticut LLC 

After forming your corporation in Connecticut, there are still some things that you will need. Take note of the following:

  • Get a company business account and business credit card
  • File business permits and business licenses
  • Get liability for business liability insurance with coverage for employees
  • File a Connecticut LLC annual report or biennial report
  • Already existing LLCs that wish to operate in Connecticut must register as a foreign Connecticut LLC.  

This page has provided you with steps to Connecticut LLC formation and formation requirements and processes. You now have to remember upcoming filing deadlines for federal taxes and additional taxes as well as business licenses, filing fees, and filing costs, including late filing fees, to make sure your LLC is up-to-date.  

Why an LLC in Connecticut

Connecticut is one of those original 13 colonies in the United States. Irrespective of the type of business, Connecticut is now having more than 340,000 small companies. The state is popular for the elite and some of the wealthiest citizens residing there. 

You can either have a single-member Connecticut LLC or other types of LLCs. Many incentive programs or business funding options are available in Connecticut for entrepreneurs willing to start an LLC. 

Incentive Programs

This state offers diverse incentive programs for the new entities. The main goal of such programs is to encourage newly set up businesses. Most of these incentive programs are created and handled by the Department of Economic and Community Development. Some of the programs offer an easy loan for business, whereas some programs offer tax credits and other government benefits. 

Tax Exemptions

Personal & Real Property Taxes – If you have installed new machinery or equipment in your manufacturing unit, you can get a 100% tax exemption for up to 5 years. 

Corporate Business Tax Exemptions – Corporate business tax exemptions apply to both domestic and foreign LLCs. To get this facility, LLCs have to meet the requirement for qualification. Once qualified, they can get tax exemptions.

Sales and Use Tax Exemptions – LLCs can enjoy this tax exemption on every purchase of tangible personal property for their business. 

Enterprise Zone Program

There are specific locations such as Bridgeport, Meriden, Hartford, and Norwalk, with some more are called the Enterprise Zone. Anyone who started his/her business or started an LLC in any of these areas will get a tax credit facility under this program. Businesses can get up to 100% tax credit for the first 3 years and then 70% tax credit for the next 7 years (total of 10 years). 

Apart from the above-mentioned programs, the state has more programs like debt financing, investment capital tax credit, and other programs to support small and newly set up entities.

Top 3 Business Niches in Connecticut

When a businessman is thinking of starting a Connecticut LLC, they also have to check out the business options. One needs perfect planning and plotting to start a business before which it is important to find a profitable business in Connecticut. To help you out, here is a list of the best businesses to establish in Connecticut.

Finance and Insurance

Connecticut is very famous for the name of insurance capital, and the reason behind it is the insurance businesses formed in the state. The state is known to create maximum jobs for the insurance people and has the highest insurances. That is why the demand for the insurance business is still increasing, which means that a person can invest in this niche easily and make some profits.

Transportation Business

There are plenty of large-scale manufacturing businesses that have been established in Connecticut state. More than one-third of the country’s manufacturing is done in the state of Connecticut, due to which the requirement of transportation services is very high. This makes it a profitable niche to be considered to start a business in Connecticut.

Tourism and Entertainment

Tourism is very active in the state of Connecticut. Many people keep visiting the state to visit the local attraction, due to which a business person can choose tourism business. If someone has a place to rent out, then they can remodel it into some cottage. A person can think of starting a casino business which can be a very profitable niche. Many people come to the state for entertainment, which can make it very beneficial.

These are the best niches that one can choose to start a business in Connecticut. Other than these businesses, there are some small scale businesses that one can consider

  • Digital printing businesses
  • Microbrewery
  • Auto-repair services

Connecticut LLC Formation Review

Time needed: 30 minutes.

To recap, here are the easy steps again when forming an LLC in Connecticut. Click on the steps in this list to read the full detail.

  1. Name your Connecticut LLC

    The first thing you must do is to choose a company name, which should include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
    name llc

  2. Choose a registered agent

    In Connecticut, it is mandatory to select a registered agent service for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
    get registered agent

  3. File a formation certificate

    Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
    file formation certificate

  4. Create operating agreement

    An operating agreement is not a strict requirement but something encouraged when you start an LLC.
    create operating agreement

  5. Get an EIN

    The Employer Identification Number (EIN), also called  Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
    get an ein

F.A.Qs

What is the difference between ‘domestic LLC’ and ‘foreign LLC’?

A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.

What do I need for Domestic and Foreign LLCs?

For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.

Is the cost to form an LLC the same across states?

The cost to form an LLC varies per state.

Does an LLC need to use a DBA?

Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here

Why are operating agreements important?

This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

Is there anything else I should keep in mind when naming my LLC?

>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.” 
>Do not include words that could create confusion between your LLC and any government business. 
>Words like ‘bank, attorney, university’ are restricted as well. 
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.

Where can I file my LLC name?

Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.  

How can I know if my URL name is available?

As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website. 

Can I mail the LLC Certificate of Formation to the Secretary of State?

No. Never mail these documents or payments to the Secretary of State directly. 

Why do I need an EIN?

The reason you might need an E.I.N. is that it would help for three reasons:
>to open a business bank account
>to file and manage federal and state taxes
>to hire employees or agents

How do I get an EIN when I do not have a Social Security number?

You are not required a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.

I already have an EIN for a sole proprietorship; what now? 

Note that an LLC is different from a sole proprietorship. If you already have an EIN for your sole proprietorship, the IRS will require you to get a new one when your convert to an LLC. 

Do foreign applicants need an SSN to get an EIN?

International EIN applicants do not need an SSN to get an EIN.

What is an IRS?

The IRS is the one that will issue your EIN. You can request an EIN from the IRS ONLINE or download the FORM, fill it out, and send it by mail or fax.

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