How to Start an LLC in Connecticut: A Step-by-Step Guide
Forming a limited liability company (LLC) in Connecticut is one of the most popular ways to structure a small business. An LLC gives you personal liability protection, tax flexibility, and a straightforward management structure. Whether you are launching a new venture or converting a sole proprietorship, here is what you need to know about starting an LLC in Connecticut.
Step 1: Choose a Name for Your Connecticut LLC
Your LLC name must be distinguishable from other business entities registered with the Connecticut Secretary of State. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.” You can search the Connecticut business name database at the Secretary of State website to check availability. Consider reserving your name for up to 120 days by filing an Application for Reservation of Name if you are not ready to file immediately.
Step 2: Appoint a Registered Agent in Connecticut
Connecticut law requires every LLC to designate a registered agent who can accept legal documents and official correspondence on behalf of the company. Your registered agent must have a physical street address in Connecticut (not a P.O. box) and be available during normal business hours. You can serve as your own registered agent, appoint a trusted individual, or hire a professional registered agent service.
Step 3: File Your Articles of Organization
This is the official filing that creates your LLC. You file the Articles of Organization with the Connecticut Secretary of State, either online through the CONCORD business filing system or by mail. The filing fee is $120 for online submissions. Your articles will include your LLC name, the name and address of your registered agent, the business address, and whether the LLC will be member-managed or manager-managed. Most small businesses in Connecticut choose member-managed because it gives all owners a direct say in daily operations.
Step 4: Create an Operating Agreement
While Connecticut does not legally require an operating agreement, having one is strongly recommended. An operating agreement is an internal document that outlines ownership percentages, profit and loss distribution, voting rights, and procedures for adding or removing members. Without one, your LLC defaults to Connecticut statutory rules, which may not reflect what you and your partners actually agreed to. Even single-member LLCs benefit from an operating agreement because it reinforces the separation between you and the business, which is essential for maintaining liability protection.
Step 5: Obtain an EIN from the IRS
An Employer Identification Number (EIN) is essentially a Social Security number for your business. You need one to open a business bank account, hire employees, and file taxes. The IRS issues EINs for free, and you can apply online at irs.gov. The process takes about five minutes, and you receive your EIN immediately upon completion. Multi-member LLCs are required to have an EIN, and single-member LLCs should get one to keep personal and business finances separate.
Step 6: Register for Connecticut State Taxes
Depending on your business activities, you may need to register with the Connecticut Department of Revenue Services (DRS). If you sell taxable goods or services, you will need a Sales and Use Tax Permit. If you have employees, you will need to register for withholding tax and unemployment insurance. You can register through the DRS online portal at portal.ct.gov/drs. Connecticut also requires LLCs to file an annual report with the Secretary of State, which costs $80 and is due each year on the anniversary of your formation date.
Need Help Forming Your Connecticut LLC?
Starting an LLC involves several moving parts, and getting the details right from day one can save you significant time and money down the road. At Harborage Law PLLC, we help Connecticut entrepreneurs form their LLCs, draft operating agreements, and handle all the necessary state filings so you can focus on building your business. Contact us today for a free consultation to discuss your business formation needs.