Are you thinking about starting an LLC in Connecticut? In this article, we’ll discuss the advantages of an LLC and how it will benefit your business: both now and later.
Then I will walk you through the entire registration process. If you decide an LLC is the right business structure for you, this guide will lead you through the whole process.
Both services use online questionnaires that take you less than 15 minutes to complete. Experienced professionals take care of the rest.
If you’d like to handle the incorporation process yourself, keep reading for our step-by-step guide. Otherwise look into one of the incorporation services mentioned above. Do what is best for you!
Just like the term name says, LLC’s will give you limited liability protection as a business owner. Once you form a Connecticut LLC, you are creating a separate and independent entity. This shields you and your personal assets from creditors who will seek remediation when problems arise. In this circumstance, they would not be able to touch your personal assets because you and your business are subjected to your own rights.
Whether it’s financial, legal or personal liability, nothing that can beat the protection that an LLC will provide.
Compliance requirements are some of the most dreaded tasks faced by entrepreneurs. Why? They are downright exhausting and complicated to complete, especially for first-time entrepreneurs.
However, if you form your Connecticut small business into an LLC, state imposed requirements for LLC’s are decreased. Reduce your frustration and organize your Connecticut business under LLC.
Unlike other business structures, LLC’s have very few restrictions is regards to who can own an LLC, as well as the number of owners of an LLC permitted by state law. LLC’s are also less subjected to government regulations.
This is one of the greatest advantages of creating a Connecticut LLC. LLC’s are given the freedom to create their organizational structure based on the majority decision of company owners. LLCs can be managed by the founders of the business, by hired managers, or through a board of directors.
Management structure will depend upon your preference. The state of Connecticut does not impose rules as to how you want to build your leadership structure nor does it impose certain formats when it comes to organization.
If you’re looking for a way to build your credibility, you might want to start by forming an LLC. Incorporating your business gives you that added boost that you’re searching for. An abbreviation after your business name will do the trick; it will attract customers, employees and investors to pay attention to your business.
Knowing that you are legally recognized by the state to conduct business, people will take your more seriously, they will be as committed in patronizing your products and services as you are committed to your Connecticut small business.
IncFile is $100 more affordable than other LLC filing services & twice as fast
Forming an LLC in Connecticut may be challenging, however, it’s not necessarily difficult. You may create a to-do list of procedures, research the process, and complete the online requirements. Or, to assist you and help you save time, follow this simple 5-step process.
This is the first step when forming an LLC in Connecticut. While there’s no definite rule to naming your business, there are a few things to be aware of.
When naming your Connecticut small business, choose a name that will not confuse the public. You must include ‘Limited Liability Company’ or ‘L.L.C.’ or ‘LLC’ after your business name when filing.
Once you’ve decided on a name, check for duplication using the state’s business name research database. If you want to reserve your name, you may do so by mailing an application for reservation before the Connecticut Secretary of State’s Office. The name can only be reserved for 120 days. A $60 filing fee is also required.
A Registered Agent can do wonders for your and your Connecticut business. They have a huge role to play in your daily operations. These professionals are mainly responsible for receiving and accepting legal documents on your behalf.
When you hire a Registered Agent, make sure that he/she is reliable, trustworthy and efficient. Track record and experience are very important as well. They have to be a resident of the same state where you are conducting business with a street address in Connecticut.
Registered Agent fees may be pricey, reaching as high as $160/year. However, if you incorporate your LLC with IncFile, you will receive a Registered Agent free for one full year. That’s $100 less than other online incorporation services!
Your Articles of Incorporation are the most important documents that you have to complete when forming your Connecticut LLC. Filing your Articles of Incorporation is easy. Download a copy of the Articles of Organization form and fill it out with the correct information.
Make sure to prepare and verify all your information before placing them on your form. Any inconsistencies may create problems as you proceed. Instructions are included on the form, including the address for submission. However, you can also complete it online. A $120 filing fee is required.
An Employer Identification Number (EIN) is an important requirement when starting your business. It is the Internal Revenue Service’ way of monitoring your business activities. It is also used for tax purposes and during the hiring of employees.
An EIN can be obtained from the IRS through online application. It’s totally free of charge. Obtain an EIN now in order to open a business bank account and begin building your business’s credit.
An Operating Agreement is not required in the state of Connecticut, however, it is required in some states. An Operating Agreement is a document that states how your Connecticut business is managed, the ownership and operating procedures of your startup.
While it’s not a mandatory requirement, it’s best practice to have one. It can protect you and your business in the long run. If you have no experience in writing an Operating Agreement, check out this site to assist you in creating a customizable Operating Agreement.
Like an Operating Agreement, a business plan is not a mandatory requirement when starting an LLC in Connecticut, however, it will make a positive impact on your business operations.
Having a well-defined and organized game plan for your Connecticut small business will increase its chance of success and hasten its progress. A business plan is not an outdated document, but a valuable tool in creating a business with a solid foundation.
As a business owner, you need to understand tax regulations and your tax responsibilities in the state of Connecticut. Every business in the state is required to pay taxes.
Pay your LLC taxes on time in order to stay compliant in your business. By doing so, you’ll be able to avoid sanctions and extra charges that could put you at risk of closing your business.
Aside from paying your state taxes, you also need to comply with annual reports. These must be filed on the first day of your anniversary month every year. Stay compliant and maintain your business’s good reputation and standing.
These are just some of the things that you should consider before fully launching your business. Once you work through this list, you will be off to a great start. Best of luck!