How to Start an LLC in Connecticut: If you’re looking to start an LLC in CT for $0, 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 for free in Connecticut. However, you must pay the mandatory state filing fee. These fees and charges can be tax deductible, making the LLC formation cost $0.
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 🙂
On this page, you’ll learn about the following:
- How to Start an LLC in Connecticut
- After Starting Your Connecticut LLC
- Connecticut Foreign LLC
- Connecticut LLC Formation Review
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 mentioned all 5 steps that explain everything you need to do to start a Connecticut LLC in 2023. 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 at $0.
- “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.
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.
Recommended: You can do name search, business domain, website, emails, and a lot more in one place by hiring a professional service. We recommend using –
ZenBusiness – ($0 for LLC Formation)
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.
It is not legally mandatory to use the word LLC in your domain name or email. If you want, you can use it. However, it is recommended not to use LLC in the domain name. A domain name should be short and easy to remember.
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/year), 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.
A person above 18 years of age and has a physical address in the state of Connecticut can be a Registered Agent. A Registered Agent can be an independent person or can be a business entity. One is responsible for handling all the legal documents on the LLCs behalf.
Yes, you can be your own registered agent if you are a resident of the state of Connecticut and you are above 18 years of age. To become a registered agent, you must have the authority to conduct any type of business in Connecticut.
There are a few reasons why you shouldn’t be your own registered agent. The address of the registered agent is used to communicate with the SOS or for any legal activities. If you are your own registered agent, you might have to upload your personal address to the public forum. Besides, the registered agent must be at the address during business hours. It won’t be easy for you as you also have to take care of other things in your LLC. Hence, it is wiser to appoint a separate entity as your registered agent.
If an LLC is sued in Connecticut, in some cases, courts might decide to lift the corporate veil, which means the owners of the LLC will be personally liable for their business debts. They might have to forgo their personal assets to repay their business debts. This is called piercing the corporate veil, where personal and business assets are not separated anymore. Your personal assets can be protected if you have enough capital and all your LLC documents are properly filed.
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.
How to File Online
Go to the Secretary of State Online Service. You will get the login page. If you are already a subscriber, then log in with your credentials. If not, then you have to register as a new subscriber. You can either select the option ‘Sign-up now’ from the Login page or click on the button below. Read more about the Connecticut Certificate of Organization for online registration.
How to File by Mail
If you prefer filing real-life forms for your Connecticut LLC registration, then you can download the form. Read the form thoroughly, fill it out, and send it to the address mentioned below.
Mailing Address: Business Service Division, Connecticut Secretary of the State
P.O. Box 150470
Hartford, CT 06115
Business Service Division, Connecticut Secretary of the State
30 Trinity St.
Hartford, CT 06106
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.
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ZenBusiness – ($0 + State Fees) Online LLC Setup
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.
Recommended: You can get a professionally made operating agreement for very less cost with ZenBusiness. You don’t need to worry about drafting it as they will take care of it on your behalf. We recommend using –
ZenBusiness – ($0 + State Fees) Online LLC Setup
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 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
Recommended: This hassle will be reduced when you hire an LLC formation service. They take care of obtaining EIN and all other things for your LLC. We recommend using –
ZenBusiness – ($0 + State Fees) Online LLC Setup
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.
Congratulation, 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.
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.
Cost of Connecticut LLC
LLCs can be formed for $0. 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|
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.
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.
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.
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
- Auto-repair services
Connecticut LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy steps again when forming an LLC in Connecticut. Click on the steps in this list to read the full detail.
- Name your Connecticut LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a Registered Agent
In Connecticut, it is mandatory to select a registered agent for your LLC. Get a professional Registered Agent from LLC formation services to get things done hassle-free.
- File a Formation Certificate
Filing a formation certificate is necessary when forming an LLC in Connecticut. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create an Operating Agreement
An operating agreement is not a strict requirement in Connecticut but something encouraged when you start an LLC to avoid future conflicts.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
How Fast Can I Form an LLC in Connecticut
Generally in 3-5 business days, an LLC in Connecticut can be formed. However, if you want the process to speed up, you can pay some additional fees to the state.
If you are looking to form an LLC in Connecticut, you will need to meet certain requirements. These include a business address, a name, and the names of the members. You can file these forms by mail or online. There are also expedited filing services that can make the process go even faster.
Forming an LLC in Connecticut is very fast and easy. However, you will have to follow the rules and pay the required fees. It can take as little as two weeks to get an LLC approved, although it can also take as long as six weeks. The total time will include both the processing time and the transit time.
For a limited liability company to be formed in Connecticut, you will need to fill out a Certificate of Organization. This form must be submitted to the Secretary of State in order to create the entity. In addition, you will need to provide a business address and a registered agent. A registered agent is a person who receives legal documents on behalf of the LLC. The registered agent must be available during regular business hours.
Another part of forming an LLC in Connecticut is registering for an EIN. An EIN is similar to a social security number and is needed when you need to hire employees and register for business licenses. Depending on the type of business you are starting, the fee will vary.
When you form an LLC in Connecticut, you will also need to register for a bank account. Having a bank account allows you to be protected from liability. Additionally, if you need to hire an employee, you will need to provide a federal employer identification number.
After you have formed your LLC, you will need to file an annual report with the state. These reports are due in the month that your business was formed. Online filings can take 1-4 business days to process, but mail filing approvals can take up to five to six weeks.
One of the most important steps in forming an LLC in Connecticut is deciding on a business name. Make sure the name you choose is unique and recognizable. Your LLC will not be able to use the same name as another business in Connecticut, or in other states. You can perform a name search on the Connecticut Secretary of State website to ensure that your name is not already taken.
Once you have selected a name for your LLC, you can complete the formation process. The process will require you to pay a filing fee and an application. Depending on your type of business, you may also need to register with the Department of Revenue Services.
You will need to register for an EIN if you want to open a bank account for your business. You will also need an EIN to file taxes. Lastly, you will need an operating agreement. Generally, these agreements describe the operations of your LLC and the rights and responsibilities of the owners and members.
If you are a resident of Connecticut, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $120 (domestic LLC) and $120 (foreign LLC), LLC costs in Connecticut include $80 for Annual Reports every year. LLCs are liable to pay sales tax of 6.35% every year.
It takes 3 to 5 business days to get an LLC in Connecticut. It can be expedited by paying additional charges. If you hire a professional LLC service, then it might take less than that. We recommend ZenBusiness which has impeccable turnaround time.
Every year all the LLCs have to submit an Annual Report and pay $80 to the Connecticut Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens. Read more on the Connecticut Classification of LLC Tax.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start their LLCs in Connecticut at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, and leave a comment below.