Starting an LLC in Connecticut can be significantly favorable for long life, state public benefits, flexible profit distribution, tax exemptions, enterprise zone programs, low starting cost, and greater limited liability incentives. So without further ado, let’s find out how you can start an LLC in Connecticut:
Pick a Business Name
Every business needs a name. If you don’t know where to start, use a business name generator to make it easy or even for inspiration. However, you must ensure that your chosen name complies with Connecticut business name regulations. For example, every LLC in Connecticut must have a distinct name with the term Limited Liability Company in any of its forms.
It is best to come up with more than one business name idea since you may find that a name you like isn’t available. You can check the availability of the business names here.
Reserve the Name You Picked
If the name you liked best is available, reserve it as soon as possible to avoid losing it. Download and fill out the Application of Reservation of Name and mail it to the Connecticut Secretary of State. The reservation fee for business names in Connecticut is $60, and the application for this purpose can only be filed through the mail.
Get an Address for Your Business
Starting an LLC in Connecticut requires a physical street address as a business address. Since you cannot use a P.O. Box, you can submit your residential address or use a virtual mailbox service. A virtual mailbox can be highly useful if you don’t want to compromise your privacy, live a nomadic lifestyle, plan to use a co-working space, or travel frequently.
Assign a Registered Agent
All Connecticut LLCs require assigning a registered agent. A registered agent is a person or entity responsible for representing the LLC on its behalf and handling all its paperwork. The registered agent must accept the position officially for this step to be completed.
No matter who you choose, you must ensure that the person or entity has a Connecticut residential address. i.e., a physical street address. They must also be authorized to conduct business in Connecticut. However, you can also assign a foreign entity as your business’s registered agent if they are authorized to conduct business in Connecticut. For more information, go through the complete eligibility criteria for a Connecticut LLC registered agent here.
File LLC Articles of Organization
The articles of organization is a document filed with the Connecticut Secretary of State. It contains the basic information of the business getting established and is essential to starting an LLC in Connecticut. Here is the information required by the form:
LLC name, street address, and email address
LLC purpose and duration
Registered agent’s name, address, and signature
Business members’ names and addresses
Signature of the person filing the articles of organization
The form can be filed online or through mail to the Connecticut Secretary of State. The form contains instructions on how to fill and submit it. It costs $120 to file the articles of organization.
Get an Operating Agreement
An operating agreement isn’t essential to start an LLC in Connecticut. However, you can only benefit from getting one. An operating agreement is an internal document for businesses that carries the operational procedures and regulations. It can prevent unwanted claims and requests and keep everything running smoothly.
If your business doesn’t have an operating agreement, claims and lawsuits will be resolved using the Connecticut operating agreement for LLCs. However, the state laws prefer and use the business’s own operating agreement if it’s available. Hence, preparing an operating agreement right after filing the LLC establishment form can protect you and your business. Use this free template to create your LLC operating agreement.
Obtain an Employer Identification Number
Employer Identification Number, or EIN, is a nine-digit number provided to businesses through Internal Revenue Service. It acts like a social security number for businesses and allows them to hire employees, open business bank accounts, and report taxes.
You can get an EIN for your business by clicking this link. It does not cost any fee to obtain the number.
Check Eligibility for Additional Documents
You may need some additional documents to start an LLC in Connecticut. These include:
Certain trades and businesses need an additional state business license. You can check if you need the additional license and apply for it at the Connecticut Economic Resource Center.
Businesses in certain industries in Connecticut may require registering with the Connecticut Department of Revenue Services. Find if you are required to complete this additional step here.
Build a Website and Market Your Business
Last but not least, starting an LLC in Connecticut requires getting a website and marketing your business. The favorable business environment in Connecticut translates to high competition between businesses. With all your audience and potential customers using the internet for all their needs, you must reach them where they are, i.e., in the digital space.
Getting a website doesn’t just make your business look more legitimate and trustworthy; it also holds the audience's attention for longer. However, building a website can be challenging if you don’t have prior experience. It includes multiple steps, such as acquiring a hosting service, securing a domain main, creating a layout, writing copy, adding images and illustrations, and much more. Similarly, business marketing also requires brainstorming campaigns, creating social media accounts, tracking analytics, designing content, running ads, etc. Moreover, managing and updating the website and social media can consume much time and effort.
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