How to Start a Business in Connecticut

Introduction

Starting a business in Connecticut is no easy task. You’ll need to do the work of running the company, even though you’re not paid for it yet. But if you’ve got great ideas and a passion for making them happen, it’s worth taking the plunge. There are many state-specific requirements that must be met before opening your doors for business in Connecticut.

Write a Business Plan

The first step to starting a business in Connecticut is writing a business plan. Your plan will outline your goals, mission, and strategies for accomplishing them. You’ll also include financial information like profit margins and cash flow projections.

What should be included in a business plan?

• An executive summary—a brief overview of the business that highlights its most important features or characteristics
• A description of how you intend to reach customers through marketing methods like email campaigns or social media advertising;
• Detailed market research indicating how much money competitors are bringing in each year;

Choose a Legal Structure

Now that you’ve decided what business to start, it’s time to choose a legal structure. It’s important to understand there are many different types of business structures including sole proprietorship, partnership, corporation, and more. Each type has different tax implications and rules for ownership and management.

Choosing your legal structure is determining whether your business will be an S corporation or a C corporation (or if it should be structured as an LLC). Once you decide on one of these options, you can then determine whether or not you want to go with a traditional structure or form another kind of entity under state law (such as a limited liability company).

Select a Business Name

Choosing a name is an important step to starting your business. If you’ve never owned a company before, it’s important that you consider several factors:

• Is the name too close to another company? In Connecticut, businesses cannot have names that are so similar that customers might confuse them for one another.
• Does it sound professional? You want people to look at your company as an established and successful entity.
• Is there room for growth? You don’t want to limit yourself by having a name that doesn’t fit with what the business does now but may need it down the road if it expands its offerings or services in any way.

Apply for an Employer ID Number (EIN)

If you plan to hire employees, open a bank account or apply for permits, licenses and other government services, you’ll need an employer ID number (EIN).

Apply for an EIN through the Internal Revenue Service’s website. The IRS charges $115 if you apply online and $145 if you fax or mail your request; these fees are waived in some cases such as when applying online via e-file or by phone using an automated application system. If approved within two business days of filing your application online or requesting one in person at the time of filing, there is no additional charge.

Open a Business Bank Account

Once you have your business name, you’ll need to open a business bank account. The first step is to select the type of account that’s right for your business. Your options include:

• A business checking account
• A savings account with interest
• A credit card for payment processing or cash advances
• A merchant services account (for accepting credit and/or debit cards)

Obtain Business Permits and Licenses

Business licenses and permits are important to the success of your business. In addition, Connecticut cities have their own regulations regarding where certain types of businesses can operate within the city limits. Obtaining these licenses and permits is crucial to starting a successful business in the state of Connecticut.

Your first step should be to contact your local government offices to find out if you need any licenses or permits before beginning operations in their jurisdiction. If they do require licensing, they will also tell you what forms must be filled out as part of this process and how long it will take once all required paperwork has been submitted.

Understand Connecticut Taxes and Insurance Regulations

The Connecticut Department of Revenue Services (DRS) has published information regarding the most important aspects of state taxes and insurance in the Business Services Guide for In-State Businesses. This guide provides useful information about how to file business taxes and file an insurance claim if your business experiences loss or damage due to fire or other events.

Takeaway

You may want to start by researching what kind of business would work best for you. Think about what kinds of products or services are already available in the area and how they could use improvement; then figure out how yours would fit into this new niche.

Once you have an idea of what kind of startup is right for you, it’s time to take a closer look at the paperwork involved in getting one off the ground.

Conclusion

Starting a business in Connecticut is a great way to find your place in the world. If you’re looking for more inspiration, check out our blog posts on how to choose a business name and write a business plan. And if you have any questions along the way, don’t hesitate to reach out! We’d love to help.