Hamburgers. Yale university. Hartford and ESPN. Connecticut is known for many things including the Mark Twain house and museum.
So you’ve made the decision and are wondering how to incorporate an LLC in Connecticut. But what should we do next? And how much will it set you back? All of the actions you’ll need to take, as well as the fees and documents necessary for Connecticut firms, are explained below.
A limited liability company (LLC) offers small businesses not only the security from legal responsibility but also a more advantageous tax treatment than they would get if they were operating as sole proprietorships or partnerships.
After determining that a limited liability company (LLC) is the most appropriate company structure for your purposes, you can quickly and easily get your LLC up and running in the state of Connecticut by adhering to the instructions outlined in this article.
You should be aware that you have the choice of creating the limited liability company (LLC) yourself, or you can find a professional company formation firm to perform all of the effort on your behalf. Both options are available to you.
1. Determine Your Connecticut LLC name
Inside the state of Connecticut, there are two basic regulations that must be observed when selecting a name for a limited liability corporation (LLC):
- The name you choose for your Connecticut limited liability corporation must be distinctive enough to avoid confusion with other companies with similar names.
- In order to form a limited liability corporation, your business name must contain either the term “Limited Liability Company” or the abbreviations “L.L.C.” or “LLC” (LLC).
- Put up a request with the Secretary of State to have the name of your limited liability business held in reserve.
You will need to file a reservation request to the Connecticut Secretary of State after you have chosen a name for your limited liability company (LLC) in the state of Connecticut.
To begin, you will need to check the availability of the name in issue by using the database of business names that is kept by the Connecticut Secretary of State.
You are allowed to proceed with the filing of an application to register the name you wish to use for your limited liability company (LLC) for a period of up to 120 days, provided that the name you want to use is available. The application, together with the filing fee that is necessary, must be sent to the office of the Secretary of State in Connecticut. The filing price is sixty dollars.
2. Select a resident in Connecticut to serve as your registered agent.
Every limited liability corporation that does business in Connecticut is obliged to have a registered agent located in the state. This term refers to a person or corporation that has agreed to receive service of process on behalf of the limited liability company (LLC) in the event that it is brought before the court.
It is permissible for the Registered Agent to either be a person who resides in Connecticut or a business that is granted permission to conduct activities inside the state. Either option is appropriate. It is necessary for the Registered Agent to present proof of a Connecticut physical address that can be contacted.
What precisely is it that a Registered Agent is responsible for?
The company or individual that is selected by a business to receive tax forms, legal notifications, and correspondence from the government on behalf of the firm is referred to as the company’s “Registered Agent.” This role may be filled by either a single person or a whole organization. Consider the function of your registered agent to be that of the state’s primary point of contact for your business.
Who is qualified to act as a Registered Agent for a company?
Either a person who maintains a full-time residence in the state of Connecticut or a business that is authorized to operate within the boundaries of the state are eligible to serve as a Registered Agent in the state of Connecticut. An illustration of the latter type would be a service known as a Registered Agent. You have the choice of selecting anybody who is currently employed by the business, including yourself. This includes picking others.
3. Fill out an application to be granted a Certificate of Organization.
In order to properly create your limited liability company, you will need to fill out a document known as the Certificate of Organization. This form is responsible for laying out important information about your business. It is vital that all of the facts be exact on this form since it serves as the official registration for your firm with the state.
In what manner should the information be presented on a Certificate of Organization?
You will need to provide the following information in order to finish filling out the Certificate of Organization for your Connecticut limited liability company (LLC):
- LLC’s name
- The duration of the limited liability company, which might be either finite or indefinite.
- The address of the limited liability company’s primary administrative headquarters.
- The name of the registered agent for the limited liability corporation, as well as the address where they may be reached.
- The address at which the Secretary of State shall send postal notices to the limited liability company (LLC), if the LLC is to receive them.
- Who will be in charge of running the Limited Liability Company (LLC): the members of the LLC or the management of the LLC?
- Regardless of whether or not the limited liability corporation will provide commercial services.
- Names and addresses of each of the individuals who established the limited liability corporation, as well as any other relevant information
- The street address and contact number of at least one member or management member of the limited liability company who has direct knowledge of the operations of the firm (LLC).
- Providing a Copy of Your Company’s Certificate of Incorporation
- All domestic limited liability companies are needed to fill out a Certificate of Organization form. International limited liability corporations who intend to do business in Connecticut are needed to submit a form known as a Foreign Registration Statement rather than the usual LLC Registration form. This is due to the fact that Connecticut does not recognize foreign LLCs. No matter whether the organization is located in the United States or elsewhere in the world, there is a filing cost of one hundred twenty dollars.
In Connecticut, the whole registration process may be finished online, and you have the option to download the relevant paperwork and continue filling them out at a later time. In addition, you have the ability to register your vehicle in Connecticut online.
You have the option of sending your paperwork to the following address rather than handing it over in person if that is more convenient for you:
Post Office Box 150470, Hartford, Connecticut 06115-0470 is the location of the Business Services Division of the Connecticut Secretary of State.
You also have the option of handing in your paperwork in person. Depending on the path you follow during the decision phase, the process might last anywhere from a few days to many weeks.
4. Obtain a Certificate From Your State’s Government.
A certificate attesting to the LLC’s legal existence will be issued by the state to anybody who requests a copy and pays the proper postage once the LLC formation documents have been filed and approved.
If the limited liability company has this certificate, it will be allowed to apply for an Employer Identification Number (EIN), as well as business licenses and a bank account specifically for companies.
5. Establish a Contract for Your Company’s Daily Activities
Even though drawing up a comprehensive operating agreement for a limited liability company (LLC) is not a legally needed step for forming a limited liability company in the state of Connecticut, it is strongly recommended that all new limited liability corporations do so.
In the operating agreement, you should make sure to include the following provisions:
- Describe the organizational structure of the limited liability corporation as it relates to business.
- Find out the particular functions and obligations that will fall on the shoulders of each member of the limited liability company.
- Specify in great detail the management structure that will be used by the limited liability corporation.
- If a limited liability company (LLC) does not have an operating agreement that specifies the exact obligations that each member is responsible for, it may face significant legal and practical obstacles in the future.
6. Acquire an EIN tax number
A great number of limited liability organizations (LLCs), which are frequently referred to as tax ID numbers, will be needed to apply for and get a Federal Employer Identification Number (EIN).
The Internal Revenue Service (IRS) requires all businesses to have an Employer Identification Number (EIN), which is a nine-digit number that uniquely identifies the business. In order to pay federal employment taxes, establish a bank account, or hire employees, you are required to have an EIN.
You are able to check to determine whether you need an EIN by going to the website of the Internal Revenue Service (IRS), which may be accessed free of charge, and submitting an application for one online at the same time.
Instead of obtaining an EIN, single-member limited liability corporations, which are an exception to the regulation that states the majority of businesses are obliged to get one, are permitted to utilize the owner’s Social Security number.
Some limited liability companies (LLCs) conducting business in the state of Connecticut may be required to obtain one or more licenses or registries from the state or from the governments of their respective municipalities.
This requirement is subject to the specifics of the LLC’s operations as well as the location of the company’s headquarters.
To learn more about what is required to open for a company in Connecticut, check out the Start a Business Guide made accessible by the Secretary of State. The Connecticut License Directory makes it possible to search for and get information on a particular license.
Get in contact with the borough or county clerk in the area where the registered office of your limited liability company is located in order to get information about the licenses and registrations that are necessary in order to lawfully do business there.
7. File Annual Renewals
Every single limited liability business operating in the state of Connecticut is obliged to provide the Connecticut Secretary of State with an annual report. In the calendar year after the year the LLC was formed, between January 1 and April 1, a report must be filed.
A friendly nudge in the shape of an email is sent out by the Secretary of State to limited liability companies four weeks before the report is due. It is necessary that the report be uploaded in digital format to the website maintained by the Secretary of State. The fee to submit paperwork is twenty dollars.
How much will it cost, and what is the next step?
When you file your Articles of Organization with the Connecticut Secretary of State, you will be charged a fee of $120. This fee must be paid before your documents can be processed.
If you wish to submit the application to reserve the name of your limited liability company (LLC) before you turn in the articles of incorporation, the filing fee for the application to reserve the name is sixty dollars.
Take into consideration the extra costs listed below, which may be paid by a limited liability company:
- Reserving a Name for an LLC
- “doing business as” may also be abbreviated as “DBA.”
- Certified document copies
- Evidence that something exists (certificate)
- What should we expect next
When you form a limited liability company (LLC), also known as a limited liability corporation, you create a legal foundation on which to run your business.
Companies should make it a top priority to keep their limited liability corporation in active compliance with state rules and in a prominent position on the website of the relevant government agency.
In addition, having a limited liability corporation that is registered gives you the power to carry out the following actions:
- Obtain any relevant permits or licenses, such as those from the health department, zoning department, department of home occupations, department of professional licensing, etc. In certain places, a vendor is required to get authorization before conducting sales.
- Make sure to register your business with the appropriate state department of revenue.
- Open a business bank account with a commercial bank, such as a Bluevine or a Novo account, if you want to conduct financial transactions for your company.
- Make sure your business has a credit card by opening an account for it.
- Make an investment in business insurance to protect your firm.
- Develop a trademark to safeguard not just the name of your business but also its logo.
DIY company formation or professional services setup?
In order to form a limited liability corporation, often known as an LLC, you are not obliged by law to seek the advice of an attorney. The vast majority of states make it possible to form limited liability companies (LLCs) by registering the business entity on the internet using the website of the state’s secretary of state and using the IRS.
If you are not familiar with the steps involved in establishing a limited liability company (LLC), your best choice may be to use the services of a professional formations services provider of LLCs so that you can be guaranteed that the formation process will go efficiently and without any complications.
Utilizing the services of a specialized agency may help budding business owners save money and time while establishing their company. They are capable of handling of the things that you may not have free time to think about for a fee that ranges from fifty dollars to over five hundred dollars, and some examples of the things that they can take care of for you are as follows:
- Putting in writing an operating agreement for a limited liability company (LLC) that outlines your company’s primary aspects and developing such agreement (required in some states).
- Producing a Certificate of Organization that details the administration of the LLC, the registered agent, and the date the company was established is an essential step in setting up a business.
- Taking up the responsibility of acting as the registered agent for your company.
- Keeping meticulous records in the case that there are inquiries or lawsuits to be filed.
- filing fees must be paid, and registration must be completed with the relevant parties.
- The process of registering the name of your business and checking to see whether the name you choose for your limited liability corporation is available will need to be completed.
- Putting the finishing touches on and handing in all of the essential legal and formation paperwork.
What are the fees associated with establishing an LLC in Connecticut?
It will cost you $120 to file the Articles of Organization for a Connecticut Limited Liability Company, and it will cost you $60 to file an application for a name reservation.
How long does it take to start up a limited liability company in the state of Connecticut?
Connecticut typically approves LLC paperwork within two to three business days if submitted online and seven to ten days if mailed.
In Connecticut, what are the prerequisites to form a limited liability company?
Connecticut LLCs need a registration fee, a name, a Registered Agent, a Certificate of Organization, an Operating Agreement, and an IRS EIN.
Tom is the founder of Gottagrow.io. He reads the offers, deciphers the details including features, pricing, included services and more to find you the best products and services.