If you’re thinking of starting an LLC in Connecticut, one of the first things you should consider is whether to form a Limited Liability Company (LLC). An LLC is a popular type of business structure that offers personal liability protection and flexibility regarding taxation and management.
However, forming an LLC can be a complex process, and it’s important to understand the requirements and considerations involved. In this article, we’ll walk you through the key steps to opening an LLC in Connecticut.
If you’re planning to start an LLC in Connecticut, there are some important things you need to keep in mind. Your business plan, industry requirements, and local regulations are all key factors you can’t ignore. By taking the time to get your LLC set up properly, you’ll be setting yourself up for success and protecting your business at the same time.
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7 Steps to Create an LLC in Connecticut
Here are the costs of opening an LLC in Connecticut broken down into different categories:
- Choose a name: The first step in creating an LLC in Connecticut is to choose a name for your business. The name must be unique and distinguishable from any other business names registered in the state.
- Appoint a registered agent: All Connecticut LLCs are required to appoint a registered agent, who will receive legal and official documents on behalf of the business. The registered agent must have a physical address in Connecticut and be available during regular business hours.
- File Articles of Organization: To create an LLC in Connecticut, you must file Articles of Organization with the Connecticut Secretary of State’s office. The filing fee for this is $120.
- Draft an operating agreement: While not required by law, an operating agreement is a recommended document that outlines how your LLC will be managed, including details such as the roles and responsibilities of each member and how profits and losses will be distributed.
- Obtain necessary licenses and permits: Depending on the type of business you’re operating, you may need to obtain additional licenses or permits from the state or local government in order to operate legally.
- Obtain an EIN: An Employer Identification Number (EIN) is a unique identifier issued by the IRS that is required for LLCs with more than one member or if you plan to hire employees. You can apply for an EIN online through the IRS website for free.
Remember to consult with an experienced attorney or online legal service to ensure that you comply with all state and federal regulations. With the right planning and preparation, your Connecticut LLC can provide you with the protection and flexibility you need to achieve your business goals.
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Costs to Open an LLC in Connecticut
Here are the costs associated with opening an LLC in Connecticut:
- Articles of Organization: This is the document that officially registers your LLC with the state of Colorado. The filing fee for this document is $50.
- Name reservation: If you want to reserve a specific name for your LLC before submitting your Articles of Organization, you can do so for a fee of $25.
- Registered agent: Every LLC in Colorado is required to have a registered agent, which is a person or entity designated to receive legal documents on behalf of the LLC. You can either act as your own registered agent or hire a professional service, which typically costs between $100 and $300 per year.
- Business licenses and permits: Depending on the nature of your business, you may need to obtain various licenses and permits from state and local government agencies. The costs of these licenses and permits can vary widely depending on the industry and location of your business.
- Annual report: Every LLC in Colorado is required to file an annual report with the Secretary of State’s office, which includes basic information about the LLC such as its name, principal office address, and registered agent. The filing fee for this report is $10.
It’s worth noting that these costs are just a rough estimate and may vary depending on the specifics of your LLC. Additionally, there may be other costs associated with running your LLC, such as taxes, insurance, and professional services.
Three Things To Be Aware Of When Starting Your LLC
The video below covers three things you must know when creating your LLC.
- Commingling Funds
- Registered Agent
- Piercing the Corporate Veil
If you are unfamiliar with these terms, please watch the video below.
Files needed to open an LLC in Connecticut
To open an LLC in Connecticut, you will need to file the Articles of Organization with the Connecticut Secretary of State. The Articles of Organization include the following information:
- Articles of Organization: This is the main document that must be filed with the Connecticut Secretary of State’s office. The document must include the name of your LLC, the address of your principal place of business, the name and address of your registered agent, and the name and address of the LLC’s organizer.
- Operating Agreement: While not required by law in Connecticut, an operating agreement is a recommended document that outlines how your LLC will be managed, including details such as the roles and responsibilities of each member and how profits and losses will be distributed.
- Name Reservation: If you want to reserve your LLC name before filing your Articles of Organization, you can do so by filing a Name Reservation Application with the Connecticut Secretary of State’s office. The fee for this is $60.
- Certificate of Good Standing (if applicable): If you are forming an LLC in Connecticut but your business is registered in another state, you will need to obtain a Certificate of Good Standing from that state.
It’s important to ensure that all documents are filled out accurately and completely to avoid any delays or complications in the LLC formation process. As always, it’s recommended that you consult with an experienced attorney or online legal service to ensure that all necessary documents are properly prepared and filed.
Incfile is our preferred choice for LLC formation because they provide all of the services your new business needs while being transparent with pricing. They also offer a free registered agent service for the first year, even in their free package.
Check out a behind-the-scenes of what managing your LLC looks like in your dashboard in this Incfile review.
Things to consider when opening an LLC in Connecticut
There are several things to consider when opening an LLC in Connecticut. Here are some of the key factors to keep in mind:
- Choose a unique name: The name of your LLC must be distinguishable from the names of other LLCs and businesses registered in Connecticut. You can search the Connecticut Secretary of State’s business name database to ensure that your desired name is available.
- Designate a registered agent: Connecticut requires that all LLCs designate a registered agent, who is responsible for receiving legal documents and other official notices on behalf of the LLC. The registered agent must have a physical address in Connecticut.
- Consider your tax obligations: LLCs in Connecticut are subject to state and federal taxes, including income tax and sales tax. You may also need to register for state-specific taxes, such as the Connecticut Business Entity Tax.
- Obtain any necessary permits and licenses: Depending on the nature of your business, you may need to obtain various permits and licenses from state and local government agencies. This could include a Connecticut Sales and Use Tax Permit, a Business License from your local municipality, and other permits and licenses specific to your industry.
- Create an Operating Agreement: While not required by Connecticut law, it’s recommended that LLCs have an Operating Agreement. This document outlines the rights and responsibilities of each member, as well as how the LLC will be managed and how profits and losses will be allocated.
- Consider consulting with an attorney: LLC formation can be complex, and it’s important to ensure that all necessary steps are taken to protect yourself and your business. Consider consulting with an experienced attorney or online legal service to ensure that your LLC is properly formed and structured.
Overall, opening an LLC in Connecticut can be a straightforward process with the help of an experienced attorney or online legal service. By considering these key factors and taking the necessary steps to comply with Connecticut’s laws and regulations, you can set your LLC up for success.
Conclusion
Forming an LLC in Connecticut is a great way to protect yourself and your business while enjoying the flexibility of a small business. By following the steps outlined in this article and taking the time to consider your options carefully, you can ensure that your LLC is properly formed and structured for success. Whether you’re just starting out or looking to expand your existing business, forming an LLC in Connecticut could be the right choice for you.
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For more information on starting an LLC in Connecticut, be sure to visit other resources on our website. Our articles on the various steps involved in forming an LLC, as well as information on the benefits of an LLC, can provide you with the information you need to make informed decisions about your business.
Additionally, our guides on registering for taxes, obtaining an EIN, and creating an operating agreement can help you navigate the legal requirements of starting an LLC in Connecticut. Whether you’re just starting out or looking to expand an existing business, forming an LLC in Connecticut can be a great choice. For more information and support as you begin this process, be sure to visit our website and take advantage of our comprehensive resources.
Legal Disclaimer: This article contains general legal information, does not constitute professional legal advice for your situation, and should not be interpreted as creating an attorney-client relationship. If you have legal questions, you should seek the advice of an attorney licensed in your jurisdiction.
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This depends on where you’re at in your journey.
Step 1 is deciding what type of business you want to start.
Step 2 is filling out the BizBuddy Pathway for your business.
Step 3 is legally forming your business.
Check out the FAQs below that match up with where you’re at in your process.
What Type of Business Should I Start?
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Think of it like writing a book. The Pathway is like coming up with the title, storyline, and chapters, so you have the outline of where to begin. This is how you become the 8%.
How Do I Legally Form a Business?
It’s not as difficult as you think. That’s because in the U.S. small businesses accounted for 62% of all new jobs created between 1995 and 2020. That’s why you hear people say small business is the backbone of the economy. Check out this Guide on How to Legally Form a Business (in the U.S.). It will give you a full understanding of what goes into forming your legal entity and the options available to you. If you’re unfamiliar with terms like “Piercing the Corporate Veil” you’ll want to check out that guide.
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