How to Start an LLC in Connecticut: 2025 Guide

Using an LLC Formation Service

Small business entrepreneurs can benefit from online LLC services to establish their Limited Liability Companies (LLC). These services will help file the necessary documents, allowing small business owners to focus on running their businesses. They have features like guaranteed acceptance by the state, assistance with the EIN application, registered agent service, and drafting of operating agreements. Online LLC services can be a reasonable and worthwhile cost.

Business owners can customize these packages to suit their individual needs. If you want to compare services and costs before deciding, you can choose from several options. Northwest Registered Agent, Swiftfilings, and Bizee LLC services are the most popular choices and have the best ratings.

 

Starting your own business is thrilling and daunting. If you’ve settled on forming a Limited Liability Company (LLC) in Connecticut, you’ve chosen a path that offers flexibility, protection, and potential tax advantages. But where do you begin? This guide will walk you through establishing your LLC in Connecticut.

Step 1: Choose a Business Name

The first step in creating your LLC is picking a unique name. Connecticut has specific guidelines for naming your LLC, including the need for the name to differ from other businesses registered in the state.

Here are the guidelines you must follow: 

• The name must include “Limited Liability Company” or its abbreviations (LLC or LLC).
• It must be distinguishable from the names of existing businesses registered in Connecticut.
• Certain restricted words (e.g., Bank, Attorney, University) may require additional paperwork and a licensed individual to be part of your LLC.

You can check the availability of your desired name on the Connecticut Secretary of State’s website or do a quick, free name check to see if your chosen name is available. If you are considering getting a website name that matches your business name, You can find good deals for your domain names on Namecheap. 

 

Step 2: Hire a Registered Agent

Like in other states, your LLC must have a registered agent in Connecticut. A registered agent is a person or company that agrees to receive legal papers on behalf of your LLC, ensuring you get all important legal notices. The agent must have a physical address in Connecticut and be available during business hours. You can act as your registered agent, choose someone you trust, or hire a professional service like Northwest Registered Agent, Swiftfilings, or Bizee.

Check out our blog: ‘Is a Registered Agent Necessary? Your Guide to Finding an Affordable Option‘

Step 3: File Your Certificate of Formation

Let’s make your Connecticut LLC official by filing the Certificate of Formation. This document is crucial as it formally registers your LLC with the state of Connecticut. Here’s what you need to include in your Certificate of Formation:

• LLC Name: Ensure you include the full legal name of your LLC, followed by “LLC” or “Limited Liability Company.”
• Mailing Address: If your business receives mail at a location different from its physical address, list that here.
• Registered Agent: Designate a registered agent who will handle official documents for your LLC. Include their full name, address, and contact information. They must formally agree to act as your registered agent.
• Management Structure: Indicate whether your LLC will be member-managed (by you and any other owners) or manager-managed. List the names and addresses of the members or managers. For privacy, you may use a P.O. box for addresses.
• Purpose: Provide a brief description of your business.
• LLC Organizer: Identify the person or entity completing and filing your work. This role is crucial for correctly setting up your LLC.
• Formation Date: Specify the date your LLC will officially begin. You can set this to the filing date or choose a date up to 90 days.
• Signature: After reviewing your Certificate of Formation for accuracy, sign and date the document. Ensure your registered agent has consented to their appointment.

How to Send Your Form

When you’re ready to establish your LLC in Connecticut, filing your Certificate of Formation is crucial. This document officially registers your business with the state. Here’s how you can file your Certificate of Formation in Connecticut:

• Online: For the quickest and most efficient processing, file your Certificate of Organization through the Connecticut Secretary of State’s online business portal. This platform allows you to submit your paperwork and payment easily.
• By Mail: If you prefer the traditional route, you can also file by mail. Complete the Certificate of Organization and send it with the appropriate fee to the Connecticut Secretary of State, Business Services Division, PO Box 150470, Hartford, CT 06115-0470.
• In-Person: If you wish to file in person, bring your completed Certificate of Organization to the office at 30 Trinity Street, Hartford, CT.

Filing Fee: The filing fee is $120 for domestic and foreign LLCs intending to operate in Connecticut.

Filing the Certificate of Organization to establish your LLC in Connecticut is essential. To avoid any delays, provide accurate and complete information before submitting it.

Step 4: Making an Operating Agreement for Your Business

Let’s discuss setting up some ground rules for your business. This is where an Operating Agreement comes in. Think of it as a handbook that explains how your business runs. It’s important because it helps everyone understand their role and what’s expected in your LLC.

Here’s what an Operating Agreement usually includes:

• Ownership: This part talks about who owns what percentage of the business. 
• Member’s Rights and Responsibilities: Here, you’ll write down what each person in the LLC can and cannot do and what they’re responsible for. It’s like a job description for each member.
• Joining & Leaving: This section covers how new people can enter your business and what happens if someone decides to leave. It’s good to have this figured out so there are no surprises later.
• Dissolution: This might sound a bit gloomy, but it’s practical. It’s about how to close down the LLC if you ever need to. It includes the steps to take and how to handle everything when wrapping up the business.

Creating an Operating Agreement is a smart move. It keeps things clear and organized so everyone knows what to expect, and it can save you a lot of time. 

Step 5: Getting Your EIN from the IRS

Your business needs a number called an EIN from the IRS. It’s like an ID number for your business. This number will help you as an identification number when getting bank accounts and credit accounts, filing taxes, and hiring employees.

It’s free, and you can get it from the IRS website.

Step 6: Steps After Forming Your LLC 

Open a Business Bank Account 

Keeping your personal and business finances separate is crucial for financial management and legal protection. Opening a business bank account requires your EIN and Articles of Organization. It makes tracking business expenses easier and simplifies tax filing.

Get a Business Credit Card

A business credit card is an excellent tool for handling business purchases and can help build your company’s credit history. Just like with personal credit, a good business credit score can make it easier to get loans and may qualify you for better terms. Check our favorite credit card for your business. 

Our Favorite Credit Card

Hire an Accountant

Managing finances can get complicated, especially as your business grows. An accountant can help you navigate tax laws, handle bookkeeping, and plan for financial growth. This professional guidance can save you time and money in the long run.

Create a Professional Website 

A website makes your business look legit. WordPress is a great tool to build your site. You can check out Hostinger for web hosting. It’s a great and affordable option to get your site up and running.

 

Connecticut LLC: Permits, Licenses, Tax Requirements, and Annual Reporting

Following the state’s regulations after setting up your LLC in Connecticut is essential. In this section, you’ll learn about the permits and licenses that your Connecticut LLC requires, your tax obligations, and the annual reporting requirements.

Obtain Any Additional Permits and Licenses

Connecticut’s permits and license requirements vary based on your LLC’s business activities and location.

• Local Business Licenses: Check with your local city or county clerk’s office or website for local business license requirements.
• Professional Licenses: Certain professions in Connecticut may require state-issued professional licenses, which various departments within the state government manage.
• Health Permits: Businesses involved in food service, healthcare, or beauty services might need health permits from the Connecticut Department of Public Health or local health departments.

Tax Requirements in Connecticut

Properly managing your LLC’s tax obligations is crucial for compliance and financial health.

• Employer Taxes: If you plan to hire employees, register for Unemployment Insurance Tax through the Connecticut Department of Labor and for Employee Withholding Tax through the Connecticut Department of Revenue Services.
• State Taxes: Connecticut Limited Liability Companies (LLCs) are considered pass-through entities for federal tax purposes. However, they may still be required to pay the state’s Business Entity Tax. Additionally, they may need to register for a Sales and Use Tax Permit if they sell goods or specific services.
• EIN: All LLCs require an Employer Identification Number (EIN) from the IRS for tax purposes, hiring employees, and opening a business bank account.

Annual Reporting in Connecticut

Maintaining good standing with the state involves filing an annual report with the Connecticut Secretary of State.

• Filing Requirements: Connecticut LLCs must file an annual report to update their business information.
• Fees and Filing: The annual report filing fee is $80, and you can file it online through the Connecticut Secretary of State’s business portal.
• Importance: This report is vital for keeping your LLC’s contact information current and maintaining your business’s good standing in the state.

To ensure your Connecticut LLC operates successfully within state laws, following permits, licenses, tax obligations, and annual reporting guidelines is essential. For the most up-to-date information and guidance, we recommend visiting the official Connecticut Secretary of State website and the Connecticut Department of Revenue Services website.

New 2025 BOI Reporting Update

Effective March 26, 2025

Big update for business owners: As of March 26, 2025, U.S.-based companies no longer need to file a BOI report. This is a major change from the 2024 rules. If you run a domestic LLC, corporation, or similar entity inside the U.S., you’re no longer required to file Beneficial Ownership Information reports unless you’re registered as a foreign entity. Here’s what you need to know now:

First Report Deadlines:

• U.S.-Based Entities: If your company is formed and based in the U.S., you’re now exempt—no deadline, no filing.
• Foreign Entities Registered Before March 26, 2025: You must file your first BOI report by April 25, 2025.
• Foreign Entities Registered On or After March 26, 2025: You have 30 days from the date your business is registered in the U.S. to file your BOI report.

Who Needs to Report:

• Domestic Reporting Companies: No longer required to report as of March 26, 2025.
• Foreign Reporting Companies: If your company is formed outside the U.S. but registered to do business here, you still need to report.

Exceptions to Reporting:

Some foreign companies may be exempt. You’ll want to check the latest rules under 31 CFR § 1010.380(c)(2) and the official Small Entity Compliance Guide from FinCEN to confirm.

What Must Be Reported:

The report focuses on transparency. If you’re a foreign company that needs to file, you must report:

• Your company’s legal name, any trade names, and its business address.
• The jurisdiction where it was formed and its U.S. registration details.
• The full name, date of birth, home address, and ID number (plus an image of the ID) of each person who owns or controls the business.

When Must Reporting Companies File Reports:

• Foreign companies formed before March 26, 2025: File by April 25, 2025.
• Foreign companies formed after March 26, 2025: File within 30 days of registration.

Filing Reports & Noncompliance Penalties

• Where to File: All BOI reports must be submitted electronically through FinCEN’s official portal.
• Cost: Filing is free.
• Accuracy: You’re required to certify that the information is true and correct. Double-check your report before hitting submit.
• Penalties for Noncompliance:
  • Up to $10,000 in fines
  • Up to 2 years in prison if you knowingly provide false information or skip the filing.
• Safe Harbor Rule: If you realize you made a mistake in your report, you get 90 days to file a corrected version without penalty.

If you need help filing, you can use a third-party service or visit the official FinCEN website for full guidance.

If you’re considering starting a Limited Liability Company (LLC) in Connecticut, there are a few things to remember. This process may take some time but can lead to building a foundation for your LLC. By following these steps, you’ll be on your way to establishing a flexible, legally recognized business structure that can protect your assets while offering potential tax advantages. If you need help, services like Northwest Registered Agent, Swiftfiling, or Bizee exist. They can handle any legal details your LLC requires, like getting your EIN and sorting out your operating agreement.