If you are looking for the chance to launch an LLC in Connecticut, this guide will help. Learn how to set up an LLC in Connecticut in just a few simple steps. We’ll walk you through the process and highlight important considerations.
Featured Partners
1
ZenBusiness
$0 + State Fees
Varies By State & Package
2
LegalZoom
$0 + State Fees
Varies By State & Package
3
Northwest Registered Agent
$39 + State Fees
Varies By State & Package
Before Starting a Connecticut LLC
In the early stages of filing an LLC in Connecticut, you must handle a few vital details. The following sections explain what you must take care of ahead of moving forward with your business formation.
Check Name Availability
It would be unfortunate to settle on a name and get your formation papers rejected because the name was not available for use. Avoid this with a business name availability check through the state website’s business records search engine. Once you settle on a name, by law, it must include the words “limited liability company” or use an acceptable abbreviation such as “LLC,” “L.L.C.,” “Limited Liability Co.” or “Ltd. Liability Co.”
After determining name availability, you have the option to hold the name by completing an Application for Reservation of Name form. The filing fee is $60. You can file online or by mail with checks made payable to the Secretary of the State. Should you file the form, you will be able to hold your desired name for up to 120 days.
Get a Registered Agent
To successfully form an LLC in Connecticut, you must have a registered agent; trying to submit documents without one will get your paperwork rejected. The agents receive state or legal documents on behalf of your business. You or another individual can act as your registered agent if you are a Connecticut resident. You must provide your business address (if there is one), residence address and home mailing address. The agent must sign your formation paperwork.
Instead of having an LLC member or employee act as the agent, you can hire a company to step into the role. A company offers privacy for your personal address and may be a more reliable option. The price tends to range between $49 and $300 per year. As you have annual obligations, be sure the registered agent services cover everything you need.
Filing Your Connecticut LLC Documents
All domestic LLCs must complete a Certificate of Organization. Foreign LLCs registering to do business in Connecticut must instead turn in a Foreign Registration Statement form. The filing fee is $120 for both domestic and foreign entities.
While you can download and complete these documents at a later time, Connecticut lets you perform the entire registration process online. If you prefer to submit your paperwork by mail, send the documents to the Business Services Division, Connecticut Secretary of the State, P.O. Box 150470, Hartford, CT 06115-0470. You can also submit documents in person.
Depending on which option you choose, the process can take between a couple of days and several weeks.
After Setting Up Your LLC in Connecticut
Once you complete the process of establishing your Connecticut LLC, you can now shift focus to running your business and keeping it in good standing. The next sections include tips to help keep your business going for the long term.
Get an Employer Identification Number (EIN)
An EIN is sometimes called a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN). EINs are required for most businesses; single-member LLCs with no employees are an exception, as the owners can choose to use their Social Security numbers (SSNs) instead. Even so, EINs are preferable for protecting one’s SSN from identity theft and maintaining privacy. You can quickly obtain your LLC’s EIN at the IRS website.
Create an Operating Agreement for Your LLC
Creating an operating agreement for your Connecticut LLC is not legally required, but it is still a great idea. These internal documents determine how the business will run. An operating agreement not only lays out the members’ responsibilities and capital contributions, it can also be crucial in deciding everything from member voting power to how the LLC gets dissolved.
An operating agreement is also beneficial in the event of member disagreements and any confusion as to individual financial obligations.
Buy Web Domain and Set Up Social Media
Many potential customers like to do online research about businesses or products. While you are not obligated to have a website and social media profile, investing in an online presence is still an excellent idea. Register a domain name and establish social media accounts right away, so you’ll have the names you want when you’re ready to start using them.
Submit an Annual Report
After creating an LLC in Connecticut, you are responsible for keeping your information updated by filing annual reports. Please note that you will not get asked for any financial information. The current filing fee is $80 for both domestic and foreign entities. You must file your report online unless you obtain a waiver allowing you to file by mail.
Pay Your Taxes
An LLC can be treated as a sole proprietorship, partnership, S-corporation or C-corporation for tax purposes. LLCs that are taxed as partnerships or S-corps must pay a 6.99% Connecticut pass-through entity tax. However, the tax can be offset by a credit for personal income taxes.
An LLC taxed as a C-corporation is subject to a 7.5% Connecticut corporate income tax.
Frequently Asked Questions
How much does it cost to form an LLC in Connecticut?
Domestic and foreign entities both pay $120 to form their LLCs.
How long does Connecticut let you reserve a business name?
You can hold a name for up to 120 days.
Are Connecticut LLCs required to file annual reports?
Every year, you must submit an annual report and pay an $80 filing fee
How do I make corrections to my Connecticut LLC documents?
If you make a mistake, you can file a Statement of Correction with the Secretary of State. The process costs $100.
What form do I need to dissolve an LLC in Connecticut?
You must submit a Certificate of Dissolution. There is no filing fee.
What other legal classifications are there for my business?
There are a number of different kinds of legal classifications your company can use to protect itself from liabilities. For example, filing a corporation can be useful if you want your company to be partially owned by outside shareholders. This is a preferable arrangement for many business owners. For more details, check out our comparison of LLCs and corporations.
