How to Start an LLC in Connecticut (CT)

Are you looking to legitimize your business without spending a lot of money? Forming a Limited Liability Company (LLC) in Connecticut is the perfect business structure for anyone looking to take their business seriously without jumping through hoops to set it all up.

You can have your LLC up and running in less than 15 business days and for less than $125. Creating an LLC separates your personal assets from your business assets, it ensures you’ll never pay for any debts or losses if your business gets sued or runs into financial problems. Essentially, it gives you the protection of a corporation but with the flexibility of a sole proprietorship. 

To file your LLC in Connecticut, follow our step-by-step instructions: 

How to Form an LLC in Connecticut – A Step by Step Guide

You can apply for your LLC on your own or through a professional service. While filing on your own isn’t complicated and doesn’t take too much time, you still want to make sure you complete each step as outlined below, ensuring your LLC is set up correctly the first time around.

If you’d rather not handle your business’s legal side, we suggest hiring experts to file all your business paperwork for you (a more worry-free approach).

Otherwise, if you’re a do-it-yourself kind of person, follow these 5 initial steps:  

1. Name your Connecticut LLC 

To form an LLC in Connecticut, you need to follow specific name requirements set by state law. Your business name needs to be unique, meaning no other company has a similar name. 

Name Requirements

Before checking to see if the business name you’d like is available, to abide by Connecticut LLC law, make sure the name of your company contains one of the following:

• Limited Liability Company
• L.L.C 
• LLC

You’re allowed to abbreviate ‘limited to’ ltd.,’ and ‘company’ to ‘Co.’. Your LLC name can be your business name, like Plumbing King L.L.C, or the name of one of your LLC’s members, such as Joe Smith LLC.  

Check Name Availability

Once you’ve decided on your name, you need to check to see if it’s available and there’s no other company in Connecticut using it. The quick and easy way to do this is through a quick google search using your desired name.

If you don’t find any competing companies, you can move onto the next step – checking your business’s potential name through the Connecticut business name search. 

If you find a name you like that’s available but you’re not quite ready to file for an LLC, you can reserve the name through the Connecticut Secretary of State by filling out an application for Reservation of Name. It costs $60 to reserve a name and lasts for 120 days. The only way to reserve your business name is by mailing your application and a check to:

Commercial Recording Division

Connecticut Secretary of the State

P.O. Box 150470 Hartford,

CT, 06115-0470

Using a Fictitious Name

If you don’t want to use LLC in your business name, then you can add a fictitious name once your business is registered. Also known as DBA (“doing business as,”) or a trade name, a fictitious name allows you to run your business under a name that’s not the legal LLC registered name.

You can also use a fictitious name if you plan on running several different businesses under your LLC formation.

If you’d like to use a fictitious name in Connecticut, you need to register your desired name with the town clerk where your LLC is active. This means you need to file your LLC first (follow step 3) and then apply for a fictitious name. Each town clerk has their own forms, rules, and application fees, so as soon as your LLC is approved, get in touch with the town clerk in your area. 

Once you’ve figured out what your business name is and you’ve made sure it’s still available, the next step is to choose a registered agent who will help you with the legal side of your business. 

2. Choose a Connecticut Registered Agent

A registered agent is anyone who receives and sends legal documents on behalf of your company. They are the main point of contact between your company and the Secretary of State.

In Connecticut, an LLC must have a registered agent who lives in Connecticut and has a valid street address (not a P.O. box).

An LLC registered agent can be:

• Yourself 
• A family member or friend 
• A Commercial Registered Agent  

Why you should use a registered agent

While the easier route seems to have yourself, or one of your LLC’s members, act as the registered agent, there are some benefits in hiring a professional. A registered agent will ensure your business is always in good standing with the state, helping you stay organized and up-to-date. It also adds a layer of protection since they’ll help you in the case of a lawsuit or any penalties/fines.

Once you’ve decided who’s the best person to be your registered agent the next step is to submit your LLC application. 

3. File a Connecticut LLC Articles of Organization

To file your LLC in Connecticut, you need to complete the articles of organization application and submit it to the Connecticut Secretary of State.  

Be prepared to include the following information: 

• the LLC’s name
• the effective date of formation (either the day you’re applying or a future date). 
• the name and address of the LLC’s registered agent
• if the LLC will be member-managed or manager-managed
• the LLC’s initial principal office address, 
• signatures of one of the LLC members 

What’s the difference between member-managed or manager-managed? 

Member-managed is if you (and the other owners of your LLC) are responsible for everyday business activities. In contrast, manager-managed is if you decide to hire someone who is not a member to manage your business’s day-to-day activities.

Member-managed is more common for smaller businesses, while larger companies typically use manager-managed. You’d usually only choose manager-managed if you are a passive investor and aren’t involved much in the business. 

If you fill out the form with inaccurate information, your writing is illegible or you skip a section, your application will be refused. Always double-check your business information is correct before submitting it. 

It costs $120 to file an LLC, and you can apply online or by mail. Expect to wait 7-10 business days before getting approval. 

Once you get approval, you can move onto step 4 – creating an LLC Operating Agreement. If you’re operating your LLC by yourself, skip to step 5. 

4. Create a Connecticut LLC Operating Agreement

If your LLC has two or more members, it should have an operating agreement. Although it’s not required in Connecticut, we suggest creating one to outline how the business is structured and how it will operate among its members (and/or managers). 

Some of the sections you’ll typically find covered in an operating agreement include:

• Organization
• Management
• Voting
• Capital distributions
• Distributions
• Dissolution

Again, while this is not a necessary step, as you don’t have to mail it to the secretary of state, it is recommended if your LLC has more than 2 members. It helps clarify the rules of your LLC and makes sure they are legally documented.

After you’ve agreed and created an LLC Operating Agreement, the next step is to create your unique employer identification number. 

5. Apply for your Connecticut LLC Employer Identification Number (EIN)

Once your LLC is approved, you’ll need to get an employer identification number (EIN).
An EIN is a federal tax ID number that registers you with the Internal Revenue Service (IRS). This number identifies your company when filing taxes.

How to register for an EIN:

– Apply online or,
– fill out the Employer Identification Number form and fax it to 855-641-6935, or mail it to:

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

If you apply online, you’ll get instant approval. If you apply by fax, it takes up to 4 business days, whereas mailing can take up to 4 weeks. Applying for your EIN is completely free! 

Connecticut LLC Registration – Final Checklist & Summary

Ready to get started? Use this simple checklist to make sure you’ve dotted your i’s and crossed your t’s! 

1. Name your LLC – Your business name must include Limited Liability Company, Limited, L.L.C, LLC,  Ltd, or co. Your business name can’t be used by any other business in Connecticut. To check the name availability of your LLC search through Connecticut’s online business name search.
   
2. Choose a Registered Office – A registered agent is a person who receives and sends legal documents on behalf of your company. It can be you, a friend or family member, or a commercial registered agent. 
   
3. File a Connecticut LLC Articles of Organization – To file an LLC in Connecticut, you need to submit the articles of organization application. It costs $120 to register your LLC, and approval takes 7-10 business days.

4. Apply for your Connecticut LLC Employer Identification Number (EIN) & File your Tax Registration Form – Once you get approval for your LLC, you need to apply for an employer identification number (EIN) through the IRS. This number identities your company when filing taxes. You can apply online for free, and approval is instant.
   
5. Create Connecticut LLC Operating Agreement – If your LLC has two or more members, you should create an LLC operating agreement that outlines how the business is structured, who is responsible for what, and how much of the LLC each person owns. You don’t have to send your operating agreement to the Connecticut state, but you should have one, so everything is documented and signed by all members.

Always double-check your LLC information is correct before submitting any paperwork. You want to avoid simple mistakes and ensure your business is set up correctly from the get-go. If it’s within your budget, we recommend using a formation service to help form your LLC. They can act as your registered agent and make sure your company is always in good standing. Just make sure you do your homework and choose one of the best LLC services for your business.

Our first recommendation is to go with ZenBusiness, an LLC creation service that holds your hand from start to finish. Packages start as low as $49. 

How To Apply for a Connecticut LLC Online

Now that you know the exact steps on what’s needed to form your LLC, it’s time to start the application process. There are two ways of going about this:

1. Do it Yourself 

Taking the DIY route is a good option if your budget is tight or you’ve previously opened an LLC and understand how it works.

2. Use an Online Formation Company

Using an online formation company is a better option if it’s your first time opening up an LLC and if it’s within your budget (formation services cost anywhere between $49 – $199). This is typically a better choice if you want to avoid headaches and have peace of mind knowing professionals handle everything for you. 

If using a professional service is more up your alley, here are our top 3 recommendations: 

ZenBusiness

ZenBusiness built its platform to meet the needs of your business throughout its lifetime. When you pay for their services, you’ll receive a personalized dashboard for your business to store documents, receive alerts, and manage your website.

ZenBusiness charges work on a tier system. There are three different tiers with pricing as follows:

• The Starter = $49 annually
• The Pro = $199 annually
• The Premium = $299 annually

Visit ZenBusiness and File Your LLC Today

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IncFile

IncFile provides you with a full suite offering startup services to best support your business formation.

Their pricing model also depends on the state you are filling. You can generate a personalized quote on their website by entering the necessary information about your business.

Visit IncFile and file your LLC today

IncFile Review

Legal Zoom

LegalZoom is an online legal service provider that helps you to be able to create legal documents without having to pay the expensive lawyer fees. Some of the services they provide assistance to includes business formation, copyrights, and trademarks.

LegalZoom has many different pricing options available. For their LLC service, pricing begins at $79 + the allotted state fee.

Visit LegalZoom and file your LLC Today

LegalZoom Review

After Starting Your Connecticut LLC

You’re approved – now what? The journey doesn’t stop here – there’s still a handful of things you need to do to get your business off the ground. We recommend ticking off the following items to make sure your LLC gets off on the right foot. 

Purchase A Domain For Your Business

Even if your business is local, having an online presence is essential in creating trust, professionalism, and a way for people to find you. If you haven’t already thought about getting a website, now’s the time. In a tech-saturated world, you need a domain to not only attract new customers but help create a good first visual impression of what your business does and how it can help. 

Get A Business Phone Number

Since your business is now an approved Connecticut LLC, you should think about getting a business phone number. Having a business number is a great way to show professionalism to your clients and customers. It makes you more serious and, more importantly – more trustworthy.

There are various online phone services you can go with, or you could go the traditional route and open an account through a local branch. You can get a local number or a 1-800; the options are endless!  

Open Your Connecticut LLC Business Bank Account

You’ll want to open a business account that’s separate from your personal banking. This will not only make accounting easier, but you won’t have to worry about your finances mixing in with your business finances.

USA Business Bank Accounts

If you already have online banking, it might be easier to open a business account through your current bank, so all your banking (although in separate accounts) will be accessible in the same place. If you prefer to open something new, keep these checking accounts in mind: 

Chase – Free checking account with no extra fees – as long as you keep a $1,500 minimum balance.

BlueVine -Free checking account with mobile banking and a debit MasterCard. 

Bank Novo – Open a free checking account with Free transfers and free ATM fees.

Northwest Community Bank – Open a checking account with no minimum balance and no maintenance fee. You only need $25 to open it! 

Ion Bank – Open one of five checking accounts based on your business’s needs. Each month you get detailed monthly statements with access to spending graphs to help you plan better.

Along with your business checking account, you should apply for a business credit card too. Having a business credit card is an excellent way to establish your business credit score (which may help if you ever need a loan). It also makes it easier for online purchases, and again, it will keep your personal and business finances separate. 

Find Accountant/Buy Accounting Software

Taxes get complicated fast and can be a burden to handle. We recommend getting an accountant or using accounting software to ensure all your spending actions are tracked (payroll, bills, invoices, receipts, etc.). Here are some popular options to look into:

Wave – Free invoicing & accounting software with credit card processing & payroll services.

Intuit Quickbooks – Online accounting software to track expenses, customize invoices, and run reports.

Freshbooks – Accounting software to send invoices, track time, manage receipts, expenses, and accept credit cards.

Directory of Federal Tax Return Preparers with Credential – If you want to use a local tax specialist, you can search for a certified public accountant (CPA) through the IRS online directory.

Having all of your business reports in one spot is highly beneficial, so you can keep an eye on your cash flow. To run a successful business, you will need to analyze how your business performs and narrow down what’s working or what isn’t working. Finding areas for growth will ensure success. 

Don’t Forget to File an Annual Report

Each year you need to file an annual report with the Connecticut Secretary of State. This report keeps your LLC active.

It’s due each year between January 1st and April 1st. Your first report is due after your first calendar year in business; for example, if you formed your LLC in June 2021, you have to file your first report in 2022. It costs $80, and the only way you can file it is online through the State’s business portal.

There’s no late fee if you fail to submit your annual report, but after 15 months, if the state still hasn’t received it they have the right to dissolve your business. The secretary of state sends out reminders to your LLC’s registered agent each year in early December. 

Notify Connecticut Of Any Changes You Make To Your LLC

If at any time you make changes to your LLC you need to inform the state. If you’re using a registered agent they can do this for you. If you’re going about this alone, you can update changes through Connecticut’s business portal or through your registered agent. 

8 Benefits of Forming an LLC in Connecticut

Setting up an LLC in Connecticut makes sure your business finances stay separate from any personal finances and that each member’s personal possessions are safe. It’s a great business entity for small, medium or large businesses as it gives you the freedom of a sole proprietorship or partnership with the protection of a corporation. Best of all, it’s easy to get (approval is instant), and it won’t cost you an arm and a leg. Some of its major benefits include:

1. Protect Your Personal Assets

The LLC will have its liability that does not automatically extend to the owners, unlike a sole proprietor, where you are legally responsible for everything. That means Connecticut LLC protects the liabilities and debts incurred by the business. In most situations, your assets, such as your car, home, or savings, will never be at risk if your Connecticut LLC is faced with lawsuits or bankruptcy.

2. Benefit From Business Profit Taxation

In an LLC in Connecticut, your profits and losses can pass through to your income without having to have corporate taxation.

3. Simple to Create and Maintain

The formation of a Connecticut LLC requires minimal paperwork and requirements. They are known for being easy to start and simple to maintain.

4. Minimal Restrictions

Your business matters can be managed by more than one owner or member while still being one main business to the public. This means all decisions and transactions behind the scenes can be equitably distributed while presenting one entity as you move forward.

5. Heighten Your Credibility

As you move forward, your Connecticut LLC will continuously be recognized as an entity. People and other businesses prefer doing business with a legitimate entity because it shows your level of professionalism.

6. Gain Access to Business Loans

When you form your Connecticut LLC, you will obtain a DUNS number and build your business credit, helping you to further build upon your business.

7. Benefit From Flexible Profit Distribution

In an LLC, you are not required to spread the distribution of profits equally across the owners. You have complete control over profit distribution in your Connecticut LLC.

8. Good For Any Kind Of Business

An LLC business structure in Connecticut is an excellent choice for both medium and higher-risk level businesses. You might always want to consider opting to go with an LLC if you have a significant amount of personal assets to protect from your company. And lastly, LLCs are great for owners who are interested in paying lower tax rates than corporations.

Conclusion

Filing an LLC in Connecticut is an excellent way to structure your business as it essentially allows you to operate as a small business but with legal protection. Forming an LLC ensures your personal assets never interfere with your business assets, and if you ever are sued or get into legal problems, your finances will remain separate. It’s a good business set up for anyone who owns property, has savings, or wants to legitimize their business. 

Since an LLC is a legal entity, it’s essential to fill out all paperwork accurately so you’re always in good standing with the state. Failure to do so might result in your LLC being formed incorrectly. We suggest using a formation service, like ZenBusiness, who act as your registered agent and file everything correctly the first time around. 

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FAQ About Forming Connecticut LLC

There are several different steps you’ll need to take to form your LLC legally. It’s a lot of information to take in and can get confusing. To help out, we’ve compiled some answers to the most frequently asked questions: