How to Start an LLC in Connecticut (Step-by-Step Guide)

If you’re considering forming a Connecticut LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, and file a Connecticut LLC Certificate of Organization.

But there’s more.

Forming your LLC in Connecticut costs about $120, and it takes about two to three business days to be approved if you file online, which is pretty fast if you ask me.

This guide compiles all the information you need to start an LLC in Connecticut today.

What Are the Steps to Start an LLC in Connecticut?

To start an LLC in Connecticut, you need to:

• Step 1. Choose and search for a unique name
• Step 2. Designate a registered agent in Connecticut
• Step 3. File Certificate of Organization with the state
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. File annual report

Let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Choose a Name for Your Connecticut LLC

Choosing a name for your LLC in Connecticut is an essential first step. It’s your company’s identity and should reflect what you do.

Your LLC name must include one of the following:

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

The name must also be distinguishable from other businesses in Connecticut.

Avoid names that could confuse your LLC with government entities. For example, don’t use terms like “FEMA” or “Department of Justice.”

Before you get too attached to a name, check its availability. Use the Connecticut business entity database to ensure your desired name hasn’t already been taken. If the name is occupied, think creatively. You can rearrange words, add adjectives, or use synonyms.

Consider a name reservation if you find an available name but need time before filing. You can do this by filing an Application for Reservation of Name for $60; you can hold your name for 120 days. This way, you won’t lose it while preparing your paperwork.

If you want to use a different name for marketing, you can do so under a DBA. This allows flexibility if you plan to offer multiple services or products. In Connecticut, registering a DBA is handled at the city level through the town clerk’s office.

You’ll need to register in the city where your LLC is located.

Each town clerk’s office has specific forms and procedures for the process, but most can be reached easily via phone, email, or by visiting their office in person.

Step 2: Choose a Registered Agent for Your LLC in Connecticut

In Connecticut, a registered agent is vital for your LLC. This person or business receives legal documents on behalf of your company. They ensure you receive essential papers like lawsuits and tax notices.

When you file with the Secretary of State, designate your registered agent in your Certificate of Organization. This step is essential for keeping your LLC compliant with state laws.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in Connecticut:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Connecticut Registered Agents

Connecticut law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Connecticut?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: Prepare and File the Connecticut LLC Certificate of Organization

To officially register your LLC in Connecticut, you must file a Certificate of Organization. This document shows that your LLC is recognized as a legal entity, which gives it liability protection.

This form includes essential details such as your LLC’s name, address, registered agent, and members’ or managers’ names.

Step #1. Complete the Form: Obtain and complete the Certificate of Organization form from the Connecticut Business Services Division website.

Include the following:

• Name of your Connecticut LLC
• Physical address of the main office
• Mailing address if it’s different
• Registered agent’s contact details
• Name and address of at least one member or manager
• Company email, if available
• NAICS code (to categorize your business)
• Signature of the LLC organizer

Step #2: File Online, in person, or by Mail: You can file your Certificate of Organization online through the Connecticut Business Services Division website or by mailing the completed form to:

Business Services Division
Connecticut Secretary of the State
P.O. Box 150470
Hartford, CT 06115-0470

You can file in person at:

Business Services Division
Connecticut Secretary of the State
165 Capitol Avenue, Suite 1000
Hartford, CT 06106

Step #3: Pay the Filing Fee: The filing fee for the Certificate of Organization is $120. If you file online, use a credit card. For mail or in-person submissions, send a check.

Once your articles are filed, the state will review and approve them. This process usually takes two to three business days. After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.

Step 4: Prepare Your LLC Operating Agreement

An Operating Agreement is an essential internal document for your LLC in Connecticut. It lays out the rules and procedures for your business. This agreement helps clarify how you and the other members will operate the company.

An Operating Agreement is often necessary, even if Connecticut does not legally require it.

It protects your business by outlining each member’s roles and responsibilities. Setting clear expectations also helps prevent conflicts.

Here are some key elements to include in your Operating Agreement:

• LLC Name and Address: Clearly state your LLC’s registered name and principal place of business.
• Members: List all members and their ownership percentages.
• Management Structure: Specify how your LLC will be managed—by members or managers.
• Decision-Making: Outline how decisions will be made, including voting rights.
• Profit and Loss Distribution: Describe how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

Your Operating Agreement can also include guidelines on adding new members or what happens if a member leaves. This document creates a solid foundation for your LLC.

Step 5: Obtain an EIN for Your LLC

An Employer Identification Number (EIN) is a unique nine-digit number the IRS assigns. It is essential for your LLC in Connecticut. You will need it for several reasons, such as:

• Opening a business bank account
• Applying for a business line of credit
• Obtaining certain permits
• Contracting with wholesale vendors

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 6: File a BOI Report

After setting up your LLC in Connecticut, you must file a Beneficial Ownership Information (BOI) report. This is a federal requirement for new LLCs.

You must submit this report to FinCEN within 90 days of forming your LLC. Filing is free and can be done online at the FinCEN website.

Here’s what you need to prepare:

• Company Information: Name, address, and formation date.
• Beneficial Owners: Full names, addresses, dates of birth, and identification numbers.

Gather this information along with your LLC formation documents. This will help streamline the filing process.

Completing the BOI report is essential for maintaining compliance with federal regulations. It ensures transparency about who owns and controls your LLC. Take the time to do this correctly to avoid any potential penalties.

Step 7: File Annual Report for your Connecticut LLC

You must file an Annual Report for your Connecticut LLC every year. This report is essential to keep your business in good standing with the state.

The Annual Report costs $80 and must be filed between Jan. 1 and Mar. 31 each year.

If your LLC is approved, your first Annual Report will be due the following year. For instance, if your LLC is approved on January 15, 2024, your first report will be due by March 31, 2025.

Your Connecticut LLC Annual Report can only be filed online.

Gather all necessary information before you file. This includes your LLC’s name, address, and any updates since your last report. Filing on time helps maintain your LLC’s good standing with the state.

What are the Different Methods To Start a Connecticut LLC?

Starting a Connecticut LLC can be done in several ways. Each method has its benefits and considerations. Below are three common approaches to help you choose what works best.

DIY LLC Formation in Connecticut

Forming your LLC by yourself is an option. This method requires you to complete all necessary paperwork and file for your LLC independently.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in Connecticut?

If you’re looking to start an LLC in Connecticut on a budget, the most affordable option is to do it online. By filing the Certificate of Organization directly with the Connecticut Secretary of State, you can keep costs between $120 and $200, depending on your needs.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Connecticut?

There are a myriad of Connecticut LLC services from which to choose. Choosing the wrong one can affect your Connecticut LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Connecticut LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for one year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands in Connecticut LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Connecticut?

Starting an LLC in Connecticut involves several fees. The main cost is for filing the necessary documents with the state.

Forming an LLC in Connecticut costs around $120, which covers the Connecticut LLC formation fees. However, there are other fees you need to be aware of.

Here’s a breakdown of the typical expenses you can expect:

Requirement	Cost
New LLC Filing Fee (Certificate of Organization)	$120
Name Reservation (optional)	$60
LLC formation service (optional)	$39 (via Northwest)
Registered Agent Fee (optional)	$0 (via Northwest)
Annual Report	$80 yearly
Total Estimated Cost	$200 – $300

When forming a new company in Connecticut, it is ideal to budget about $200-$300 for the first year. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

The most significant (and essential) expense for every Connecticut business owner is filing the Articles of Organization, which costs $120.

Pros and Cons of Forming an LLC in Connecticut

6 Important Things To Do After Creating Your Connecticut LLC

After forming your LLC, there are several vital tasks to ensure your business runs smoothly. These steps will help you stay compliant with state laws, manage finances effectively, and establish a solid foundation for growth.

1. Research the Best Licenses and Permits for Your Business

Each business in Connecticut may require specific licenses and permits.

Depending on the type of business your LLC conducts, you might need to acquire multiple state and local business licenses to start or continue operating your business.

Check the Connecticut License and Permit Center for more information. 

Standard Licenses and Permits:

• Business License: Required for most businesses.
• Sales Tax Permit: Necessary if you sell goods or services.
• Health Permits: Needed for food-related businesses.

You can often find both state and local requirements. Failure to obtain the correct permits can lead to fines or even shutdowns.

2. Create Business Accounts for Your Connecticut LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds.

This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

3. Understand Connecticut Tax Requirements and Managing Your Taxes

Connecticut has various tax obligations that you need to understand.

You must obtain an Employer Identification Number (EIN) from the IRS for tax purposes. This number is essential to hire employees or open a business bank account.

Key Tax Responsibilities:

• Sales Tax: Collect sales tax and file returns if you sell goods.
• State Franchise Tax: Pay annual fees based on your business entity.
• Self-Employment Taxes: Calculate and pay taxes on your earnings.

Keep accurate financial records to help with your annual tax filings and any reports you must submit.

4. File Your Connecticut Annual Report

You must file an Annual Report for your Connecticut LLC every year. This report is essential to keep your business in good standing with the state.

The Annual Report costs $80 and must be filed between Jan. 1 and Mar. 31 each year.

If your LLC is approved, your first Annual Report will be due the following year. For instance, if your LLC is approved on January 15, 2024, your first report will be due by March 31, 2025.

Your Connecticut LLC Annual Report can only be filed online.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions.

6. Set Up Your Business Online Presence (optional)

In today’s digital age, online presence can significantly benefit your business. Start by creating a professional website. This platform allows you to showcase your services and connect with customers.

Consider using social media to engage your audience. Platforms like Facebook, Instagram, and LinkedIn can enhance your visibility.

Connecticut LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

Starting a business involves choosing the proper structure. Each option has pros and cons.

Sole Proprietorship

A Connecticut sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk. It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

A Connecticut partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too. Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A Connecticut corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders. A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Connecticut

Starting an LLC in Connecticut is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

To start your LLC in Connecticut, follow these steps:

• Choose a unique name for your LLC.
• Appoint a registered agent.
• File the Certificate of Organization online or by mail.
• Create an operating agreement to define roles and responsibilities.
• Obtain an EIN for your LLC
• File a BOI Report
• File annual reports

The filing fee for the Certificate of Organization is $120.

After forming your LLC, prepare for annual reports, which cost $80 yearly.

Starting an LLC can offer many benefits, such as limited liability protection and more accessible tax options. By following the guidelines, you can set up your LLC efficiently. Be sure to keep your documents organized and stay informed about any changes in state regulations.

Learn More About Starting an LLC in Connecticut

If you need additional help to start an LLC in Connecticut, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Connecticut?

Yes, you can change your registered agent in Connecticut. To update the information about your registered agent, you need to file a form with the Connecticut Secretary of State.

How do I change my Connecticut LLC’s name?

You must file a Certificate of Amendment with the Connecticut Secretary of State to change your LLC’s name. There is a fee associated with this filing.

How do I renew my Connecticut LLC?

Connecticut requires you to file an annual report for your LLC. This report can be filed online between January 1 and March 31 of the following year.

How do I dissolve an LLC in Connecticut?

You must file a Certificate of Dissolution with the Connecticut Secretary of State to dissolve your LLC. Ensure that you pay any outstanding taxes and settle debts before dissolution.

How do I add a member to a Connecticut LLC?

To add a member to your LLC, you usually need to amend your operating agreement. You may also need to update your records with the Connecticut Secretary of State.

How do I add a DBA to an LLC in Connecticut?

To add a “Doing Business As” (DBA) name, you must file an Assumed Business Name Certificate with the town clerk where your LLC is based.

Can a minor own an LLC in Connecticut?

No, a minor cannot own an LLC in Connecticut. A member must be at least 18 years old to have ownership rights.

When is the Connecticut Annual Report due?

The Connecticut Annual Report is due between January 1 and March 31 of the following year. File it on time to avoid penalties.

Does LLC expire in Connecticut?

LLCs in Connecticut do not expire as long as you file your annual reports and pay the required fees. Failure to do so can lead to dissolution.

Can a non-resident open an LLC in Connecticut?

Yes, a non-resident can open an LLC in Connecticut. You will still need to appoint a registered agent with a physical address in the state.

Can I buy a house or car with my LLC in Connecticut?

Yes, your LLC can buy property or vehicles. This can be beneficial for liability protection and business expenses.

Can you have multiple businesses under one LLC in Connecticut?

You can operate multiple businesses under one LLC in Connecticut, but it may be advisable to create separate DBAs for clarity and branding.

Is Connecticut an excellent state in which to form an LLC? Is it worth it?

Whether Connecticut is a good state for your LLC depends on your business needs. You should weigh the state’s taxes, regulations, and market conditions.

Can one person form an LLC in Connecticut?

Yes, one person can form an LLC in Connecticut. This is known as a single-member LLC, and it offers the same liability protections as multi-member LLCs.