Start an LLC in Connecticut in 5 Simple Steps
Step 1: Give Your Connecticut LLC a Name
Step 2: Select a Registered Agent
Step 3: Submit the Organizational Certificate.
Create an Operating Agreement in Step 4
Step 5: Obtain an EIN
It is simple to form an LLC in Connecticut.
To form an LLC in Connecticut, you must submit a Certificate of Organization to the Connecticut Secretary of State, which costs $120. You may submit your application online, via mail, or in person. The Certificate of Organization is the formal legal document that establishes your Connecticut limited liability corporation.
STEP 1: Give your Connecticut LLC a name.
The first and most significant step in founding an LLC in Connecticut is selecting a business name. Make sure your name conforms with Connecticut naming regulations and is readily searched by prospective customers.
1. Follow the naming conventions:
The word “limited liability corporation” or one of its acronyms must be in your name (LLC or L.L.C.).
Your LLC’s name cannot include terms that may be confused with a government organisation (FBI, Treasury, State Department, etc.).
Restricted terms (e.g., bank, attorney, university) may need extra documentation and the participation of a licenced professional, such as a doctor or lawyer, in your LLC.
Your name must be unique among Connecticut limited liability companies, corporations, limited liability partnerships, and limited partnerships.
2. Does the name exist in Connecticut? Check the Connecticut Secretary of State’s website for a Business Registry Search to ensure that the name you desire isn’t currently in use.
3. Is the URL accessible? We suggest checking online to see whether your company name is accessible as a web domain. Even if you don’t intend to create a company website right away, you may wish to purchase the URL to prevent others from doing so.
STEP 2: Select a Connecticut Registered Agent
A registered agent must be designated for your Connecticut LLC.
What exactly is a registered agent? A registered agent is a person or corporate organisation that receives vital tax forms, legal papers, lawsuit notices, and other government communication on your behalf. Consider your registered agent to be your company’s point of contact with the state.
Who is eligible to be a registered agent? A registered agent must be a Connecticut person or a company, such as a registered agent service, that is permitted to do business in Connecticut. You may choose someone from your organisation, even yourself.
STEP 3: Submit the Certificate of Organization for the Connecticut LLC.
You must submit the Certificate of Organization with the Secretary of State to register a Connecticut LLC. You may submit your application online, via mail, or in person.
Now is a good moment to decide whether your LLC will be administered by members or by managers.
STEP 4: Draft an Operating Agreement for a Connecticut LLC.
An operating agreement is not necessary for a Connecticut LLC, but it is recommended.
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
STEP 5: Apply for a Connecticut LLC EIN.
What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security number.
An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).
Why do I need an EIN? An EIN is necessary in order to:
Establish a business bank account.
Filing and managing federal and state income taxes
Employ people
What if my single proprietorship already has an EIN? When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.
Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.
Important Steps Following the Formation of an LLC
Keep your personal and business assets separate.
When you combine your personal and company accounts, your personal assets (house, vehicle, and other possessions) are at danger if your Connecticut LLC is sued. This is known as penetrating the corporate veil in business law.
You may begin safeguarding your LLC in Connecticut by taking the following steps:
1. Establishing a company checking account:
Separates your personal assets from the assets of your firm, which is required for personal asset protection.
It simplifies bookkeeping and tax reporting.
Obtaining a business credit card:
Aids in categorising and separating all company costs for tax reasons at the end of the year.
Aids in the development of your business credit score, which is a necessary step in obtaining a line of credit or a business loan in the future.
Allows you to keep track of department spending by giving your staff numerous cards (with different budgets).
3. Obtaining the services of a company accountant:
Prevents your company from overpaying taxes while also assisting you in avoiding penalties, fines, and other expensive tax blunders.
It simplifies accounting and payroll, giving you more time to concentrate on your expanding company.
Manages your company finance more efficiently, identifying areas of unexpected loss or profit.