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5 Simple Steps To Form an LLC in Connecticut
Need to form an LLC in Connecticut? Individual states are allowed to set their regulations in terms of forming a Limited Liability Company (LLC), according to IRS guidelines. If you are thinking about establishing an LLC, you should first check on the regulations pertaining to your state. If you are considering establishing a Limited Liability Company in Connecticut, follow this simple 5 step guide on how to form an LLC in Connecticut.
Step 1. Naming Your Connecticut LLC
When you’re choosing a name for your company, ideally, you want one that is unique, is pertinent to your business and does not infringe on another business’s name. You can run a quick and easy check of your company’s name by using the Connecticut Secretary of State’s business entity database.
It will cost you only $60 to register your new company name. There is also a reservation service available, whereby you can reserve the name for up to 120 days by completing the Name Reservation form and submitting an application by post.
Connecticut state law stipulates that the name of your company must end with one of the following phrases or abbreviations:
- Limited Liability Company
- Limited Liability Co.
- Ltd. Liability Company
- Ltd. Liability Co.
(and for professional organizations)
- Professional Limited Liability Company
- Professional Limited Liability Co.
- Professional Ltd Liability Company
- Professional Ltd Liability Co.
If your potential new name has words suggesting that your company is an insurance business, you will need to provide extensive supporting documentation. This is also the case should your name contain any of the following words:
- Insurance company
Step 2. Your Registered Agent
The function of a registered agent in the state of Connecticut is for them to be willing to physically accept any legal paperwork on your company’s behalf in the event of a lawsuit against your company. This is a requirement under Connecticut state law.
Your registered agent does not have to be a business; it can be an individual resident of Connecticut over the age of 18 (this includes the new LLC’s members or managers) or any organization authorized to conduct business in Connecticut. Your registered agent must have a physical postal address within the state of Connecticut.
Step 3. Filing a Certificate (Articles) of Organization
Official registration of an LLC in Connecticut requires the filing of a Certificate of Organization with the Secretary of State’s office. This can be completed online for $120 at the Connecticut Secretary of State’s website.
To complete the filing, you need the following information:
- Name and address of your LLC.
- Name, address, and signature of your company’s registered agent.
- Name and address of at least one member or manager of the new LLC.
Step 4. Operating Agreement
This stage is optional. However, you may choose to prepare an operating agreement to outline your LLC’s ownership and operational procedures. This will provide you with guidelines for the day-to-day running and routine operations of your business. So, although it is not needed by law, it can help you achieve your company’s success.
Step 5. EIN and Tax Requirements
Unless your company is a single-member LLC with no employees, the IRS requires it to have an EIN (Employer Identification Number). This is a straightforward procedure and can be applied for online at the IRS’s website
There is a possibility that your LLC will be required to have the Connecticut Department of Revenue Services registration. This can either be done online or by post having completed the Business Taxes Registration Application Form REG-1.
This requirement is dependent on the type of taxes, your company intends to collect, and if you have any employees or not. If your business is selling physical products, you will need to obtain a seller’s permit from the Connecticut Department of Revenue Services, which enables you to collect sales tax. If you have employees, you will also need to register for Unemployment Insurance Tax through the Connecticut Department of Labor Tax and Benefits System and Employee Withholding Tax from the Connecticut Department of Revenue Services.
On alternating years, Connecticut levies a flat fee Business Entity Tax (BET) of $250. To get more information on this tax, visit Connecticut’s Business Entity Tax webpage.
Other Considerations – Foreign LLC Formation and Business Licenses
Foreign LLCs (Out of State LLC)
If your LLC is from outside the state of Connecticut, and you want to do business within the state, you are required to complete all of the steps outlined above. The form that you are required to complete is the main difference; if your company is a foreign LLC, you will need to complete an Application for Registration, Limited Liability Company-Foreign.
This paperwork can be filed for a fee of $120 online at the Connecticut Foreign Registration Statement website. As soon as you have this and the other requirements, as above, your LLC will be able to operate.
Depending on your type of business and the location of your business premises, your company may require additional local, state, or federal licenses. To find out what, if any, licenses you may need to apply for in the state of Connecticut, you can search the Connecticut Business Response Center website.
Various business licenses are issued at different levels of government, so ensure that you do adequate research to ensure your company is correctly licensed. There are professionals available to do this for you should you require them.