Since you’re reading this article, I would assume that you’ve already completed the incorporation process. Congratulations! You deserve a pat in the back.
Starting a business in Connecticut is one challenging task, and I’m sure that you went through so much incorporating your Connecticut small business alone. However, incorporating in Connecticut is essential to protect you and your business, so you had to do it.
I’m sure that learning how to incorporate in Connecticut was difficult, and you’re relieved that you’ve finally completed the process. But there are more things to do, so don’t be complacent just yet. Before you get frustrated, let’s discuss the 5 things that you need to do after incorporating, here’s a list of them!
An Employer Identification Number (EIN) is similar to a social security number for individuals. This is a requirement that should be on top of your list because it can be used in so many other business transactions.
Your business’s EIN is important for 3 main reasons: it is the IRS’s way of monitoring your business activities, it is a requirement to open a bank account and it’s needed so you can file your business tax returns.
The EIN can be obtained for free at the Internal Revenue Service, or you can do an online application to make things easier.
Business licenses and permits are different from business to business, however, it’s a mandatory requirement for all companies operating in Connecticut. By obtaining required licenses and permits, you will be able to conduct full operations in the state.
To make sure that you’re applying for the right permits, you can pay your city hall or local county a visit. You can ask for guidance and assistance there as to which permits and licenses are applicable to your business.
Or, better yet, if you want the assistance of a professional, you can hire an attorney to do it for you. If you fail to comply with this requirement, you’ll face consequences such as fines and sanctions. Or even worse, your business may need to be closed.
This is not a mandatory requirement in the state of Connecticut, however, it’s best that you seek the advice of a tax advisor. First of all, it’s vital that you understand your state’s tax regulations; in this way, you’ll be able to have a grasp of your tax responsibilities and obligations.
Tax period is one of the most difficult and busiest times of the year. It is essential that you ask for assistance from an experienced professional who will discuss with you things like state taxes, how to go about with the process, tax deductions, tax benefits and a lot more.
You can also ask your tax advisor to help you prepare necessary documents during tax time and guide you through the process of filing. In this way, you’ll be able to avoid mistakes and prevent redoing the process all over again.
Once you have your EIN, you’ll now be able to open a business bank account. It’s a must to open one so you can receive checks and accept payments under the business name you’re currently using.
Having a business bank account is also essential because it is one way to establish that your business is a separate entity. If you have a previous business bank account under a different legal structure, you need to close your old account and create another one placing your new business name.
At this stage, it would also be helpful if you try to open a credit card for your Connecticut startup. Having a credit card is a good way to trace your business expenses efficiently; you’ll also be able to build your credit history.
Today, many entrepreneurs are seeing the importance of trademarking their business name. It’s not for the sake of the business name alone, it’s for the brand and the reputation of their business.
Without trademarking your business name, you are allowing others to use it. When you incorporate in Connecticut, your business name is automatically protected, however, it won’t be in the other 49 states. Therefore, it’s essential that you apply for a trademark.
If you want to know how to start a business in Connecticut on the right foot, you have to incorporate your business and complete these additional requirements. These supplementary documents are easier to obtain that those documents that you had to prepare and the procedures that you had to go through during the incorporation process.
Aside from obtaining all these, you have to learn what you need to do to stay compliant. From the yearly reports that you have to file, the business taxes that you have to religiously pay every year, to the documents that you need to submit and the licenses and permits that you have to renew – all these should be familiar to you.
After you’ve successfully done all these, you are now ready to launch your Connecticut startup. Good luck!