How to Start an LLC in Connecticut (CT LLC 2024)

How to Start an LLC in Connecticut: If you’re looking to start an LLC in CT, you’ve come to the right page. Setting up an LLC is easy and cost-effective. To form an LLC, you must follow a few steps that include naming your LLC, hiring a registered agent, filing your formation documents, doing the operating agreement, and finally obtaining the EIN. You can easily set up your LLC at a very low cost in Connecticut. Though, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost almost negligible.

On this page, You’ll find all the steps that must be taken to ensure that your Connecticut LLC has been correctly formed. We recommend you read the whole article very carefully, word by word, don’t miss anything 🙂

How to Start an LLC in Connecticut

An LLC (aka Limited Liability Company) is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. For an LLC, members’ personal assets are not affected by business debts. However, in some cases, if the LLC is sued for business debts, courts might pierce the corporate veil and use the owner’s personal assets to meet their corporate liabilities.

If you wish to start an LLC in Connecticut, you must file your Certificate of Organization with the State and pay a filing fee of $120. While it’s the most important step, it’s not the only one. There are 4 other crucial steps to follow to get your LLC formed in Connecticut. Below are all 5 steps that explain everything you need to do to start a Connecticut LLC in 2024. Let’s get started! You can always hire a professional LLC formation service in Connecticut to set up your LLC instead of doing it alone; a Pro service will ensure everything is done properly.

Step 1: Decide a Name for Your Connecticut LLC

The first step while forming a limited liability company in Connecticut is to give a proper name to your LLC. Before you name your business, you must know that the name should be easy to remember, available in the state, and follows all the LLC naming guidelines.

Connecticut LLC Naming Guidelines

There are a few specific requirements all the LLCs in Connecticut have to follow while naming their Company. Some of the most important requirements are as follows:

• Your business name should be available and no other existing business in Connecticut can have the same name. ZenBusiness offers unlimited business name searches without any hassle.
• “Limited Liability Company”, “LLC”, “L.L.C.”, “LC”, “L.C.”, and “Limited Company” – any one of these has to be used as a suffix in your business name.
• You cannot use any name for your business that is confusing or misleading. Terms such as “Treasury”, “State Department”, “FBI”, “CIA”, etc. shouldn’t be included.
• Terms like “Bank“, “University“, “Attorney“, “Doctor“, etc can be added only after the additional requirements by Connecticut State Government are fulfilled.
• (Optional) It’s better to name your business something for which your desired domain is available.

Important Links –	Submit Offline Form to –
Connecticut Business Entity Search – Online Name Search Name Reservation Form – PDF Connecticut LLC Name Search Guide – Instructions Name Availability Standards – Guidelines	Mailing Address: Commercial Recording Division Connecticut Secretary of the State P.O. Box 150470 Hartford, CT 06115-0470. In-person Submission: Commercial Recording Division Connecticut Secretary of the State 165 Capitol Ave., Suite 1000 Hartford, CT 06106

Reserve Business Name for Future

If you do not wish to file your LLC right now but want to hold the name you have decided on, then you can reserve your LLC name for 120 days. To keep the name, you must file a name reservation application and pay $60 to reserve your name with the Connecticut Secretary of State. You can reserve your LLC name by mail, in person, or online. For more details, read our guide on Connecticut LLC Name Search.

Doing Business As (DBA) or Trade Name

Once you have a legal name for your LLC, you can register it. However, it is not mandatory. You can, instead, use DBA, Fictitious Name, or Trade Name. In that case, you must register your name with the Connecticut Secretary of State by submitting Trade Name online form along with the filing fee of $10.

Apart from LLC formation, ZenBusiness offers customized website templates and business emails at a very reasonable price. If you plan to get a website, then it is wise to have a “.com” domain for your business, but these days you can also use other TLDs like “.io”, “.company”, “.xyz,” etc. Here you can get everything you need for your business in one dashboard.

Step 2: Assign a Registered Agent in Connecticut

The second step to forming an LLC in Connecticut is to appoint a Registered Agent. A registered agent is a person or business entity working on your LLC’s behalf. This person or business will receive important tax forms, legal documents, all notices of lawsuits, and other official government correspondence in Connection. Hence, hiring a competent Connecticut Registered Agent for your LLC is necessary.

Make sure your registered agent is a resident of Connecticut or has a physical street address. This address will be used as the principal address of your LLC to receive any legal documents. Most LLC formation companies also provide registered agent services. Below are two great LLC formation services; even if you buy their cheapest plan (normally $0), you also get registered agent service and other services at a very reasonable price.

These two are our top recommendations for registered agent service, as they are competent and authorized to conduct business in Connecticut. Some LLC formation services also offer standalone Connecticut registered agent services. You can purchase only Registered Agent services without purchasing any other LLC formation services. This standalone service might become handy if you are doing it yourself and don’t want to disclose your home address or you don’t want to pierce the corporate veil.

Registered Agent Consent Application

In Connecticut, the registered agent has to sign a consent letter (online or offline) confirming consent to being Appointed in written or electronic form. If you change your registered agent, the new one has to provide his/her consent as well. The consent part is mentioned on the Form of Change of Registered Agent.

This consent letter assures that the Registered Agent has given his nod to serve as an Agent. They can reject the appointment too by filing a Rejection of Appointment. It is important to have this letter to avoid any future discrepancy between the Registered Agent and LLC. The Change of Agent Form can be filled and submitted along with the filing fee of $150. For more information on the same, read our guide on Connecticut Registered Agent.

Step 3: File Certificate of Organization in Connecticut

The third and most important step in forming a Connecticut LLC is to file the Certificate of Organization. This Connecticut Certificate of Organization is a legal document that is required to register your business with the Connecticut Secretary of State. It costs $120 (online and by mail filing) to file your formation certificate in Connecticut.

The Certificate of Organization includes details like the name of the LLC, the registered agent’s name, address, employees’ details, and the company’s structure (member-managed or manager-managed). Before hiring employees in Connecticut LLC, one should know about the rules and regulations thoroughly. Also, if you are expanding your existing business (an LLC) in other states to Connecticut, you must register as a Connecticut Foreign LLC.

Processing Time: Normally, it takes around 5 business days (approx) to get your LLC formed in Connecticut. The processing time for online filing might be a little faster than offline filing. With an additional cost, you can get expedited filing as well. However, the document processing time can be changed due to various factors.

Every LLC owner has to pay the filing fees to register their business in Connecticut. This fee is mandatory but also tax deductible. If you’re doing it yourself (filing on your own), it will not cost you any additional service fee. However, it is not feasible to do that as the DIY process might be delayed, complicated, and messy, especially if you’re a novice entrepreneur. Hence, it is recommended to get professional guidance to get your LLC formed in Connecticut.

Step 4: Create Your Connecticut LLC Operating Agreement

Moving on to the fourth step, filing your operating agreement. An operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC. This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.

When it comes to filing a Connecticut LLC Operating Agreement, the state does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all the details of your business operation that helps in taking future business decisions, especially if you decide to dissolve Connecticut LLC later. Hence, having an operating agreement may not be necessary, but it is surely ideal.

The operating agreement draft can be created for free if you don’t hire a professional. However, there is an advantage to appointing a proficient person/service. You will get a businesslike quality operating agreement at a very cheap fee, which will help you in the future. Hiring a professional service means you can sleep well at night 🙂

Step 5: Filing a Connecticut LLC EIN

The Employer Identification Number (aka EIN) is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify the type of business for tax purposes and taxes in general. The EIN is necessary for any active business or any form of business.

EIN application in Connecticut is needed when the LLC hires employees. Hiring employees in Connecticut LLC requires following specific rules and regulations. On the other side, EIN for Connecticut foreign LLC should be obtained if your LLC is based in other states.

To obtain EIN (aka FEIN), one must fill up a form (Online or by mail) and submit it to the IRS. Enter details of your LLC, and finally, complete the form and send it to the address given. You can also get an EIN Assistant to help you with the process.

Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999

Fax: (855) 641-6935 | Fee: Free

Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.

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Congratulations, you are now done with all the necessary steps to form your Limited Liability Company in Connecticut. If you do it yourself, it should take you a long time to understand and do all the steps properly.

However, if you use ZenBusiness, it should be way faster. You will always have a live chat option and phone support with experts for any help you need. Their worry-free service will make things easier for you.

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After Starting Your Connecticut LLC

After forming your LLC, there are still some things that you will need. The most important thing is to separate your business and personal assets. LLCs have limited liability protection that protects your personal assets from business liability. This is called a corporate veil. However, the corporate veil can be lifted or pierced by the court if the LLC is sued. In that case, the owners of the LLC become personally liable for their corporate debts. A few things like appointing a legit registered agent, having enough capital, and filing all the major documents with the state can save the LLCs from being pierced into the corporate veil.

Apart from that, there are a few things you need to take note of,

• Get a company business bank account
• File Connecticut business permits & licenses
• Get general liability insurance and professional liability insurance with coverage for employees.
• File a Connecticut LLC annual report or biennial report

This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.

The LLC formation processing time in Connecticut is 10 business days if filing offline (by mail). The process takes 3 business days if filed online. Check how long it takes to form an LLC to know about the tentative timelines.

Cost of Connecticut LLC

LLCs can be formed by spending less price. Apart from the mandatory state filing fees, you don’t have to bear additional service charges if you do it yourself. Following are the fees and taxes LLCs in Connecticut must pay to register and run a business in the state. Forming an LLC is no doubt cost-effective compared to other business structures. However, the fees and charges (tax-deductible) that you must pay to the state, such as name reservation fee, name filing fee, LLC filing fee, and Franchise Tax & Sales Tax (If applicable). Here are the main fees and taxes you must pay while forming your limited liability company in Connecticut,

Fees/Tax	Amount to be Paid
Name Reservation Fee	$60 for 120 days
Certificate of Organization Fee	$120
Connecticut Annual Report	$80
Sales Tax	6.35%

In Connecticut, LLC name reservation is not mandatory. You can register your LLC name at the time of registering your LLC. If you wish to hold the name for some time without registering your LLC, then a Name Reservation is needed. It can be reserved by paying $60. Your LLC name will be reserved for 120 days. In some states, Name Reservation is mandatory. Read our guide on LLC costs in Connecticut for more information.

Connecticut Foreign LLC

If you are interested in forming a Foreign LLC in Connecticut, then you need to file the Certificate of Foreign LLC to the Connecticut Secretary of State. Foreign LLCs allow you to operate your business in more than one state. Along with the Certificate of Foreign LLC, you need to submit some more documents like the Certificate of Good Standing, etc. to the Connecticut SOS to form your foreign LLC in Connecticut. To know more in detail, check out our guide on Connecticut Foreign LLC.

Reasons to Start an LLC in Connecticut

Connecticut is one of those original 13 colonies in the United States. Irrespective of the type of business, Connecticut is now having more than 340,000 small companies. The state is popular with the elite and some of the wealthiest citizens residing there. You can either have a single-member Connecticut LLC or other types of LLCs. Many incentive programs or business funding options are available in Connecticut for entrepreneurs willing to start an LLC.

Incentive Programs

This state offers diverse incentive programs for the new entities. The main goal of such programs is to encourage newly set up businesses. Most of these incentive programs are created and handled by the Department of Economic and Community Development. Some of the programs offer easy loans for businesses, whereas some programs offer tax credits and other government benefits.

Tax Exemptions

Personal & Real Property Taxes – If you have installed new machinery or equipment in your manufacturing unit, you can get a 100% tax exemption for up to 5 years. Read more on Connecticut’s classification of LLC tax. Corporate Business Tax Exemptions – Corporate business tax exemptions apply to both domestic and foreign LLCs. To get this facility, LLCs have to meet the requirement for qualification. Once qualified, they can get tax exemptions. Sales and Use Tax Exemptions – LLCs can enjoy this tax exemption on every purchase of tangible personal property for their business.

Enterprise Zone Program

There are specific locations such as Bridgeport, Meriden, Hartford, and Norwalk, with some more are called the Enterprise Zone. Anyone who started his/her business or started an LLC in any of these areas will get a tax credit facility under this program. Businesses can get up to 100% tax credit for the first 3 years and then 70% tax credit for the next 7 years (total of 10 years). Apart from the above-mentioned programs, the state has more programs like debt financing, investment capital tax credit, and other programs to support small and newly set up entities.

Top 3 Business Niches in Connecticut

When a businessman is thinking of starting a Connecticut LLC, they also have to check out the business options. One needs perfect planning and plotting to start a business before which it is important to find a profitable business in Connecticut. To help you out, here is a list of the best businesses to establish in Connecticut.

Finance and Insurance

Connecticut is very famous for the name of insurance capital, and the reason behind it is the insurance businesses formed in the state. The state is known to create maximum jobs for the insurance people and has the highest insurances. That is why the demand for the insurance business is still increasing, which means that a person can invest in this niche easily and make some profits.

Transportation Business

There are plenty of large-scale manufacturing businesses that have been established in Connecticut state. More than one-third of the country’s manufacturing is done in the state of Connecticut, due to which the requirement of transportation services is very high. This makes it a profitable niche to be considered to start a business in Connecticut.

Tourism and Entertainment

Tourism is very active in the state of Connecticut. Many people keep visiting the state to visit the local attraction, due to which a business person can choose tourism business. If someone has a place to rent out, then they can remodel it into some cottage. A person can think of starting a casino business which can be a very profitable niche. Many people come to the state for entertainment, which can make it very beneficial.

These are the best niches that one can choose to start a business in Connecticut. Other than these businesses, there are some small scale businesses that one can consider

• Digital printing businesses
• Microbrewery
• Auto-repair services

Connecticut LLC Formation Review

F.A.Qs

In Conclusion

When it comes to forming an LLC in Connecticut. It is much simpler than other business structures. In Connecticut, starting a small business or a start-up is easy because of its diverse resources. For small budget holders, forming a limited liability company is desirable. The steps explained in this article are generic steps for starting a business in Connecticut. It is recommended to consult an attorney or service provider.

In Connecticut, while establishing an LLC, make sure you check with the local bodies like the city council and district office to get updated with local regulations. We recommend ZenBusiness, one of the best LLC services that offers LLC formation at $0 (+ state filing fees). Hiring a professional service would make things easier. From having a registered agent to complying with the local and state government, everything will be smoother than doing things all by yourself.