When starting up an LLC there is a lot to consider. Among the concerns is naming the business, along with paying taxes and keeping everything properly insured. For people starting an LLC in Connecticut, there are specific state requirements that have to be followd. This protects the business and helps ensure that everything is legally processed the right way. Additionally, it also protects the public from companies that may not do business fairly. By carefully following the state’s requirements, an LLC can be created with little to no difficulty.

GETTING STARTED

Naming the LLC

  • Connecticut has a tool to search online for LLC names. This allows anyone interested to see if a name has already been taken, or if they can use it for their LLC. There is more to the issue, however. The name must have Limited Liability Company or the abbreviation in it, and must also not use any prohibited words that are used by federal and state agencies. There are also restricted words, but these can be used with the filing of additional paperwork or if a licensed individual is a part of the LLC. When naming an LLC, it is important to also determine if the domain name is available, so the company can build its web presence.

Selecting a Registered / Statutory Agent

  • A registered agent is someone (either an individual person or a business entity) that can accept official correspondence for an LLC. In Connecticut that can be someone within the LLC itself, including the owner. It can also be a third party that is not otherwise connected with the LLC. NO matter who is chosen, though, there are requirements to meet. An individual must be a resident of the state, and any corporation used as a registered agent must be authorized to work in the state. People and entities that do not meet these requirements are excluded from serving in this capacity.

Filing Articles of Organization

  • The Connecticut Articles of Organization for a Domestic LLC can be filed online, which makes it convenient for companies wanting to form an LLC in that state. The fee to file is $120. By filing the Articles, the business is essentially declaring its intent to exist a an LLC, with whatever laws need to be followed to make that a reality. Every state requires some form of documentation regarding organization of an LLC, and the Articles of Organization are the most common choice.

Creating an Operating Agreement

  • Like most states, Connecticut is one that does not require an operating agreement for an LLC forming within its borders. Many LLCs create operating agreements anyway, simply for their value as company documents that provide valuable information on the company. Any LLC can do that, but there is no requirement from the state to ever produce such a document. That makes the creation of a company in Connecticut easier than in some other states.

RUNNING YOUR BUSINESS

Getting Your EIN

  • An EIN is an employee identification number, issued by the Internal Revenue service. Sometimes it is also called a Federal Tax Identification Number. It’s a unique number issued to each business. You’ll need an EIN to open a business bank account; file Federal and State Taxes; and hire employees.
  • Before you get your EIN make sure your new business has been properly formed before applying and be wary of paid sites. EINs are free direct from the IRS.
  • The easiest way is to apply online for an EIN. Note, the IRS website has office hours, and is only available Monday through Friday, 7am to 10pm. Yes, we also agree this is one of the most ridiculous things we’ve ever seen. You can call 1-800-829-4933, between 7am to 7pm of your time zone, Monday to Friday. Snail mail: You can download the form and mail it in.

Keeping Business and Personal Accounts Separate

  • Get a business bank account for your business. This will help you protect your personal assets from potential creditors and lawsuits, and will also make life a lot easier come tax time. 
  • Get a business credit or debit card. This will help you keep your expenses separate and easier to track.

Accounting

  • No matter what business you run, accounting software and processes is a must for any small business. If you have an accountant, ask them which software they work with and recommend. A good accounting system is necessary to track income and expenses, so you can easily see if you’re making money and make filing income taxes so much easier.
  • Always try and find something that will: sync with all of your bank and credit card accounts automatically – not just downloads, but auto sync; auto-match vendors, customers and other accounts; and let you accept credit cards and ACH drafts with ease. This can be applied for online, as can unemployment. 

Filing Connecticut LLC Taxes

  • State income tax withholding and employee withholding tax are both required by the state.
  • Connecticut requires LLCs to pay unemployment insurance tax.
  • Sales tax is a requirement for any LLC that offers taxable goods and services.
  • State licensing is also important, and often required based on the type of business that is being operated.

Getting Insurance for your LLC

  • Connecticut requires Workers’ Compensation insurance for every LLC. This is used to protect the business, and also to protect the employees if someone is injured on the job or as a result of it. But Connecticut doesn’t require other types of insurance for its LLCs, so companies may be at risk. In this case, only following the regulations may not be enough. Instead, it may be a better choice to focus on what actual insurance needs the LLC has, in addition to what the state requires.

KEEPING YOUR LLC COMPLIANT

  • There are hiring requirements set out by the state, along with the requirement for an annual report which can be filed online. The annual report is due every year, by the end of the month in which the LLC was created. The fee to file this report is $20.  LLCs can also get a Certificate of Good Standing.

FILING A FOREIGN LLC IN CONNECTICUT

  • A foreign LLC wanting to operate in Connecticut can be registered online for a fee of $120.

ABOUT HOW TO START AN LLC

I'm an entrepreneur myself. When talking to others who want to start their own business, they often get wrapped up in the nitty gritty of paperwork and forming the company. They forget that what really matters is customers, sales, and profit. That's why I created How to Start an LLC.org: a simple resource and guide so you can spend less time on forming your company, and more time on building it.

My lawyers want me to remind you that I'm not a lawyer and that I'm completely unqualified to offer legal advice. This site is meant to serve as a reference for you on your journey. If you have questions or concerns, please contact a qualified lawyer (or accountant) to help you. Also, as a general rule, never take random legal advice on the internet.