How-to Guide to Starting an LLC in Connecticut

Choose a name for your LLC

The first step to creating your LLC is choosing a unique name. Picking a unique name makes your company more easily recognizable and helps the business avoid related legal problems. All LLCs in Connecticut must include “Limited Liability Company” or an abbreviation at the end of its name.

You can use Connecticut’s Business Records Search website to search for business names currently in use.

Pick a registered agent

Choosing a reliable registered agent for your LLC is necessary since they will handle corporate documents. Registered agents are legally required to have a physical address in Connecticut and be available during regular business hours.

A registered agent can be anyone you find trustworthy. Choosing friends, family, or even yourself as your registered agent is possible. However, most companies prefer to hire a professional or a company for legal safety reasons.

File your Certificate of Organization

One of the most essential steps in incorporating your LLC in Connecticut is completing your Certificate of Organization. This document provides the government with basic information about your LLC, including the name, address, and registered agent information. Once the documents are reviewed and accepted, the government will officially form and recognize your LLC.

The Certificate of Organization has a filing fee of $120.

Receive your Employer Identification Number (EIN)

New businesses can receive an Employer Identification Number from the IRS. This number is necessary for filing taxes and completing employee payroll. EINs are also required for other essential business functions like opening a business bank account.

Maintaining your LLC’s good standing

Finally, keeping your LLC in good standing with the state is essential. Having a good standing means following all business laws, completing payments on time, maintaining up-to-date licenses and permits, and meeting all the requirements for your LLC.

Another way to maintain good standing is by keeping accurate records of your LLC’s finances, meetings, and decisions. If you make any changes to the information about your LLC,  you must update the state.

Get business licenses and permits

Like other corporations, LLCs may need to apply for specific licenses and credentials depending on their industry. For example, a business that transports passengers must obtain public transportation permits.

Ensure you acquire all necessary licenses before starting your business to avoid fines or legal penalties. For more information, visit Connecticut’s official Business license and permits website.

File your annual report

Most businesses in Connecticut must file an annual report and provide the government with updated corporate information. This information includes the LLC’s name, business ID, registered agent, information about any members or managers, and other important information.

LLCs have a fee of $80 for filing this annual report form.

Register for state taxes

While LLCs can often avoid paying federal income taxes on the corporate level, they are still required to register for state taxes through the Connecticut Department of Revenue Services. Connecticut’s online registration process is completed through this department’s myconneCT service. 

Applying for the registration may require you to pay a small fee. For more information, visit the Connecticut State Department of Revenue Services website.

• Pass-through taxation: LLCs have the unique benefit of not being required to pay federal income tax at the corporate level. Any profits or losses are passed through the members and reported on their tax returns.
• Limited liability protection: Incorporating an LLC can protect a business owner’s assets from being seized due to a business-related lawsuit.

• Management flexibility: LLCs are known for having flexible management structures, allowing them more freedom when determining how to manage the company.
• Professionalism: Incorporating your business improves the public’s trust in it. This increased reputation can lead to more customers, financing options, and new member interest.