How to Form an LLC in Connecticut

Introduction

Creating an LLC in Connecticut is a straightforward process that can be done in less than half an hour, but it’s important to do it correctly. You want to form your business with the correct structure and name, register your domain name and state taxes, appoint a registered agent and file articles of organization. In this guide we’ll walk through the steps of forming an LLC from start to finish so you know exactly what you need to do when you’re ready to get started!

Determine the structure of your business.

When you’re deciding how to set up a new business, it’s important to consider the structure of your company. There are several different options that you can choose from:

  • Sole proprietorship: This is an individual who owns and operates his or her own business without forming any kind of formal organization. The main drawback with this type of structure is that there aren’t any limits on personal liability in case something goes wrong with the business.
  • LLC (limited liability company): An LLC offers more protection against legal action than a sole proprietorship because its owners have limited liability for their actions and decisions leading up to any lawsuits that arise out of their work together. One downside is that an LLC must pay taxes as if it were a corporation, even though many people believe it should be treated like a partnership when filing taxes (which would mean lower rates).
  • Partnership: Partnerships are created when two or more people agree on how they want their business venture structured—there’s no paperwork involved beyond defining clear roles within the cooperative relationship itself.

Choose a business name.

Choose a business name.

Choose a name that is easy to remember, not too long and not too similar to another company’s name. Also make sure that your LLC’s name is not confusing, offensive or used by another company in the state of Connecticut.

You can do this by checking with the Secretary of State’s office or by doing an internet search to see if any other companies have used your proposed business name before. If you find any companies using the same or similar names then you will have to change your business name before forming an LLC in Connecticut.

Find out if anyone else is using your business name.

To find out if anyone else is using your business name, you can search for a business name at the Corporations Division website. You will be asked to enter your desired business name and address. Once you have submitted this information, you will receive a report showing all of the names in Connecticut that are similar to yours. If there are any matches, it means that someone else has already chosen a similar name for their business.

If someone else has taken your desired LLC name or something similar, there’s no need to let it discourage you from pursuing formation! Just choose another available LLC name and continue on with our guide by following Steps 2-5 below.

Register a domain name for your business website.

  • You can register a domain name for your business website.
  • A domain name must be unique.
  • Domain names can be registered from a domain name registrar, which will charge you to register and renew the domain’s registration every year on an annual basis.

Register with the state of Connecticut.

  • Register your business with the state of Connecticut. This can be done online, by mail or in person with a document called a Certificate of Organization. You must register within 45 days of creating the LLC.
  • Provide your information for an EIN number (if you don’t already have one). This is an Employer Identification Number that helps you avoid paying taxes on profits earned by your business as personal income.

Appoint a registered agent.

  • Appoint a registered agent. The registered agent is typically a person or company that is legally responsible for receiving legal and tax documents on behalf of your LLC, including articles of organization and periodic reports to the Secretary of State’s office.
  • Registered agents can be located anywhere in the U.S., including Connecticut. Your LLC’s registered agent must have a physical address in Connecticut but need not be located within its state borders (and may even live out-of-state). The address should be where you want all official correspondence sent—including legal notices, taxes and other notices from government agencies—as well as any other mailings you want forwarded to another location (for example: if you don’t have an office yet).

File articles of organization.

The articles of organization must include:

  • The name of your LLC.
  • The name of and contact information for your registered agent.
  • The name of and contact information for a resident agent if you have one.

Create an operating agreement for your LLC.

An operating agreement is a document that outlines the basic rules for how decisions are made and how profits are distributed. It is not required by law, but it’s important to have one if you want any sort of peace of mind. You can use this agreement to outline your expectations for the business: who will be responsible for different tasks, what percentage each person gets paid based on their role in making the company successful and so on. The point of an operating agreement would be moot if everyone worked out these details themselves anyway—but we live in reality! And in reality, people disagree sometimes about things like salary (or which side of the street they should drive on).

If it’s not obvious why you need an LLC at all yet, let me explain: most businesses run with some kind of documentation describing their structure and operations; this type of documentation is called an “operating agreement.” An operating agreement defines how much money each member will make from the corporation (or whether there will even be any money). It also outlines what happens when members disagree about something that affects their profits or growth as a company or venture together.

Use these steps to form your LLC in Connecticut.

Use these steps to form your LLC in Connecticut.

Before you can form an LLC, you need to do some research and gather some documents. These are the steps you should take:

  • Research the laws of your state. Make sure that it’s legal to form an LLC in your home state before proceeding any further with this process. Here are some places where you can find out more information:
  • The Securities Investment Protection Corporation (SIPC) website has general information on how securities work and what kinds of investments they’re good for

Conclusion

We hope that this article has helped you understand the basics of forming your own LLC in Connecticut.

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