How to Start an LLC in Connecticut

Last updated on 
How to Form an LLC in Connecticut | Complete Guide
A Step-by-Step Guide

How to Form an LLC in Connecticut

Opening an LLC in Connecticut is an excellent option for entrepreneurs who want protection from their personal assets. The steps are easy, and following simple guidelines, you can open an LLC with ease. Follow our comprehensive guide to ensure a smooth and efficient process.

Key Benefits

1

Liability Protection

An LLC provides its owners with liability protection, safeguarding personal assets from business debts and legal liabilities.

2

Tax Flexibility

Enjoy pass-through taxation where profits and losses are taxed on the owners' individual tax returns, avoiding double taxation.

3

Simple Management

Operate your business with little administrative hassle while maintaining the professional credibility and legal protections of a formal business entity.

Formation Process

Select a Distinct Name for Your LLC

The selection of a name for your LLC in Connecticut is important. It should be unique and not adopted by any other registered company in the state. You can verify name availability using the business name search tool on the Connecticut Secretary of State's website.

  • Required Words: The name must include "Limited Liability Company" or an abbreviation such as "LLC," "L.L.C.," "Limited," "Ltd.," "Company," or "Co."
  • Restricted Words: You cannot use restricted words like "Agency," "Board," "Bureau," or "Commission."
  • Forbidden Words: Avoid names that are similar to government agencies (e.g., "State Department" or "FBI").
  • DBA Option: If you intend to do business under a name other than your LLC's legal name, you'll have to file a DBA (Doing Business As), although it's not mandatory unless doing business under a different name.
  • Domain Name: It's also a good idea to search for available domain names to avoid someone else getting a web address you could potentially use in the future.

Select a Registered Agent in Connecticut

All LLCs in Connecticut are required to have a registered agent. This is an individual or business who accepts important government and legal documents on behalf of your LLC, such as tax documents and legal notifications.

Self-Appointment

You can act as your own registered agent, but most business owners prefer to hire a professional registered agent service for convenience. This is especially useful if you don't want to worry about handling all documents.

Professional Service

If you employ the use of a registered agent service, ensure that they have physical contact in Connecticut and work standard business hours.

Recommended Registered Agent Services

ZenBusiness

ZenBusiness provides full LLC formation services, including registered agent services. They include access to an easy-to-use dashboard for document management and provide worry-free compliance services.

  • Full LLC formation services
  • Easy-to-use dashboard
  • Worry-free compliance services

Northwest Registered Agent

With their great customer service and focus on privacy, Northwest Registered Agent provides LLC formation services as well as registered agent services.

  • Great customer service
  • Focus on privacy
  • Handles all legal documents efficiently

File the Certificate of Organization with the State

After you've selected your LLC name and registered agent, the second step is filing your Certificate of Organization with the Connecticut Secretary of State.

Online Filing

File using the Connecticut Secretary of State's online filing system. Online filings are processed more quickly, generally within 2-3 business days.

Mail Filing

Print the Certificate of Organization form and mail it to:

Business Services Division
Connecticut Secretary of State
P.O. Box 150470
Hartford, CT 06115-0470

Mail filings can take as much as 10 days to process.

Filing Fees and Processing Time

  • Filing Fee: The filing fee to create an LLC in Connecticut is $120.
  • Processing Time: Online filings are processed within 2-3 business days, while mail filings can take as much as 10 days to process.
  • Expedited Processing: Expedited processing is available for an extra fee.
  • Annual Report Fee: Connecticut has a requirement for LLCs to file an annual report. The fee for filing is $80, and it is due annually on the anniversary of your LLC's creation.

After Your LLC is Registered

Once your LLC has been legally established, you will want to take further steps to stay organized and maintain your business running smoothly:

  • Get an EIN: If your LLC will have more than one member or you expect to have employees, you will be required to have an EIN from the IRS. Even if you are a single-member LLC with no employees, it's usually a good idea to obtain an EIN to keep your business and personal finances separate.
  • Separate Personal and Business Finances: Separate your personal assets from your LLC's finances. Open a different bank account for your LLC.
  • Hire an Accountant: A business accountant can help with tax planning, bookkeeping, and ensure your LLC complies with financial regulations.
  • Get Business Insurance: Even small businesses benefit from insurance. Consider liability insurance, workers' compensation, and other policies that fit your business needs.
  • Create an Operating Agreement: Connecticut doesn't require a law-mandated operating agreement for an LLC, but it's advisable. This document specifies the management structure and methods of operation of your LLC.

After Formation

Once your LLC is established, take these important steps to maintain good standing and protect your business:

Open a Business Bank Account

Separate your personal assets from your LLC's finances. Open a different bank account for your LLC to maintain the liability protection of your business structure.

Hire a Business Accountant

A business accountant can help with tax planning, bookkeeping, and ensure your LLC complies with financial regulations. This is essential for managing your LLC's financial health.

Get Business Insurance

Even small businesses benefit from insurance. Consider liability insurance, workers' compensation, and other policies that fit your business needs to provide an additional layer of protection.

File Annual Reports

Connecticut has a requirement for LLCs to file an annual report. The fee for filing is $80, and it is due annually on the anniversary of your LLC's creation. Failure to file the annual report can lead to penalties or the dissolution of your LLC.

FAQs

How much does it cost to register an LLC in Connecticut?

The filing fee for registering an LLC in Connecticut is $120. If you file online, processing is usually faster, and the fee is the same.

Do I require a Trade Name (DBA) for my LLC?

A Trade Name (DBA) is not needed in Connecticut unless you are operating under a name other than your LLC's formal name. If that is the case, you will have to register your DBA with the Secretary of State.

How long does it take to process my Connecticut LLC registration?

If you apply online, your request will generally be processed in 2-3 business days. If you apply by mail, it can take 10 business days to process. Expedited processing is also available for an extra fee.

May I be my own registered agent in Connecticut?

Yes, you may be your own registered agent if you have a Connecticut physical address and are present during business hours. That being said, most business owners prefer to hire a professional registered agent service so they don't miss critical documents.

Do I require an EIN (Employer Identification Number) for my Connecticut LLC?

If your LLC will have more than one member or you expect to have employees, you will be required to have an EIN from the IRS. Even if you are a single-member LLC with no employees, it's usually a good idea to obtain an EIN to keep your business and personal finances separate.

Do I require an operating agreement for my Connecticut LLC?

Connecticut doesn't require a law-mandated operating agreement for an LLC, but it's advisable. This document specifies the management structure and methods of operation of your LLC, and it helps to clarify the responsibilities of the members so that future disputes are minimized.

What are the ongoing requirements for maintaining an LLC in Connecticut?

Connecticut requires LLCs to file an annual report. The filing fee for the annual report is $80, and it must be filed each year on the anniversary of your LLC's formation date. Failure to file the annual report can lead to penalties or the dissolution of your LLC.

Ready to Start Your Connecticut LLC?

Take the first step toward establishing your business with the protection and benefits of an LLC structure. Our comprehensive guide makes the process simple and straightforward.

Get Started Today
Best Incorporates Footer