Form an LLC in Connecticut with Tailor Brands for Free
Inc Authority is a leading business formation service provider with over 30 years of experience. It has helped 250k businesses get started and can help you too. The best part is that its LLC formation services are completely free.
Completely Free. No Hidden Cost
LLC formation services, including preparation and filing at no additional cost (state fees apply).
Stay compliant with state regulations, including annual report filings and other ongoing requirements.
Free access to several tools and resources to help you manage and scale your business.
Things to Know Before Starting an LLC in Connecticut
The cost of starting and running an LLC varies from state to state. If you’re planning on starting an LLC in Connecticut, you should know of these costs and the various compliance requirements.
Let’s briefly discuss some of the important details of starting an LLC in Connecticut.
- You can form a domestic or foreign LLC in Connecticut, and depending on your choice, the cost of forming and running your business will differ.
- If you want to reserve a business name, you can do so by submitting an application and paying $60 to reserve it for up to 120 days.
- To start a domestic LLC in Connecticut, you need to file a Certificate of Organization to the Connecticut Secretary of State along with $120.
- All LLCs in Connecticut must file an annual report between January 1 and March 31 of each year. Filing the annual report costs a $80 filing fee.
Forming an LLC in Connecticut is fairly easy and does not cost a lot. After COVID-19, the state also offers some tax relief for certain low-risk business ideas, so find out if you’re eligible so you can save more money.
20+
Tools and Services
4.5 Stars
Trustpilot Rating
500K+
Companies Registered
24/7
Email Support
How to Form an LLC in Connecticut
Starting an LLC in Connecticut is a simple process. Still, you need to know the exact steps you must follow to ensure that you don’t overlook anything important.
Here is a step-by-step guide for starting an LLC in Connecticut.
Choose a Name for Your Business
Your first order of business when forming an LLC in Connecticut is to select a unique, memorable, and relevant business name. It should follow Connecticut LLC naming guidelines, so make sure you find out the requirements.
To check whether your chosen name is available for use within the state, you can check the state database. If any other business is using the same name, you will need to find another name for your new LLC in Connecticut.
Reserve a Business Name and Domain
Sometimes, it may take you months before you’re ready to file an application for your LLC in Connecticut and register your business name. In such cases, if you have a particular business name in mind, it’s better to get it reserved so no one else uses it.
For an LLC in Connecticut, you can reserve your business name for 120 days, by filing a $60 state filing fee. You should also consider buying a matching domain from domain registrars like GoDaddy if you plan on launching a website for your business.
Appoint a Connecticut Registered Agent
When filing your Certificate of Organization, you’ll be required to fill out the name, address, and contact information of your registered agent. It’s a good idea to hire a local agent before you start the application process for your LLC in Connecticut.
The registered agent can be an individual (over 18 years of age) or an organization with a physical address in the state of Connecticut. The registered agent service for your LLC in Connecticut will receive and forward your business correspondence.
Create an Operating Agreement for Your LLC in Connecticut
Though it’s not necessitated by the state of Connecticut, An LLC operating agreement is an important business legal document. This will ensure that your LLC in Connecticut has clear rules on how it should be governed and decisions are taken.
An LLC operating agreement is prepared after all LLC owners discuss and agree upon a set of rules and codes of conduct. Having a written operating agreement ensures that there’s no conflict and that the LLC in Connecticut operates smoothly.
File Your Connecticut Certificate of Organization
The most important step when forming an LLC in Connecticut is to submit your Articles of Organization to the Secretary of State. This document is called the Certificate of Organization in Connecticut and costs $120 to file and submit.
Connecticut offers an online document filing option, which saves time and effort. You simply need to fill out the required information and submit it. This includes all important details about your LLC in Connecticut and the resident agent.
Get a Federal Employer Identification Number
An EIN is the tax identification number of a business through which the Internal Revenue Service and the government recognize it. It’s like the social security number of an individual, which distinguishes them from anyone else.
This is an important identification that every business should acquire. You’ll enjoy the benefits of getting an EIN for other business processes, such as opening a business bank account, paying business taxes or employee taxes, and much more.
Open a Bank Account for Your Business
Every business, whether it’s a Sole Proprietorship or a Corporation, should have a separate bank account. This ensures that the personal finances of the owners don’t mix with the business finances, which can be quite messy.
That’s why you should open a business bank account to help you separate personal assets from that of your LLC in Connecticut. Make sure you go through several options and choose one that suits your specific business needs and offers the best services.
Find Your NAICS Code and Obtain Business Permits
When you file your Certificate of Organization, you will need to fill out your NAICS code. It’s a five-digit industry code that helps categorize your business. You will also need to find out the industry-specific business permits you’ll need.
That’s why you should find out your exact NAICS code and research the business licenses and permits you’ll need. These may also differ from state to state, so check for your state-specific requirements and get everything you need.
Choose Your Tax Structure
An LLC in Connecticut has the most tax flexibility of all business entities. It can choose to be taxed as a Sole Proprietorship, Partnership, S-Corporation, or C-Corporation. The choice depends on the number of members and their business preferences.
In the case of single-member vs multi-member LLCs, a single-member LLC will be treated as a Sole Proprietorship by default. For a multi-member LLC in Connecticut, you can choose the pass-through taxation of a Partnership or be taxed as a C-Corp.
File for a DBA (Optional)
More often than not, the official name of an LLC is not the name that it uses for day-to-day business operations and not the name its customers know. Many LLCs opt for an assumed fictitious name by filing for a DBA (Doing Business As).
The reason for this is that many states require LLCs to add words like ‘Limited” or “LLC” to their names, which makes them long and unmemorable to customers. If you want a shorter LLC name, then you can file for a DBA.
Launch a Business Website (Optional)
In today’s digital world, every business needs an online presence and a website is the best way to do that. It is the face of your business and the first place a prospective customer will go to find more information about your business.
We recommend choosing a good partner for web design and marketing services and launching your website even before your business starts. This will build confidence in your business and help people find your newly registered LLC in Connecticut.
Stay in Good Standing with the State
Your job is not done once you register your LLC in Connecticut and start operations. You need to follow the state’s rules and regulations to maintain your LLC status and stay in good standing with the state. Otherwise, you may face consequences.
The two most important requirements for doing that are paying your taxes on time and filing your annual report, along with the filing fee. Find out all other compliance requirements for an LLC in Connecticut and follow those.
Why Should You Outsource LLC Formation Services?
For a new entrepreneur, starting a business can be a time-consuming and overwhelming process that requires too many legal documents and legal hassles. Outsourcing the process to a professional makes things simpler for you. Here’s why.
It’s Convenient
Hiring a professional to take care of all the tedious tasks makes things more convenient for you. All you need to do is provide the required information and documents and they’ll do the rest
It’s Error-Free
When dealing with numerous forms and documents, it’s very easy to make a mistake. But when a professional does it, they will ensure 100% accuracy as they’re used to doing it day in and day out.
It’s Quicker
When you take on the challenge yourself, you may take a lot of time to prepare and file the documents. Outsourcing can help make the process more streamlined and much quicker.
Benefits of Starting an LLC in Connecticut
LLC is one of the most popular business entities in the US, preferred by many small and midsized businesses. It offers a lot of flexibility, tax advantages, and other benefits.
Here are some key benefits of LLCs that you should know about.
Personal Liability Protection
LLCs offer the personal liability protection of a C-Corp, while still providing management flexibility. This means that the LLC members are not held personally liable for covering business debts and their personal assets will remain safe.
Only the business is liable for its debts and liabilities and its assets can be seized to recover the debt. Even if the LLC has to be dissolved and it completely goes bankrupt, the members of the LLC will remain protected.
Flexible Tax Structure
Unlike most business entities, an LLC has the flexibility to choose how it wants to be taxed. It can choose to be taxed as a Corporation, a Sole Proprietorship, or an S-Corporation and be recognized as such for tax purposes.
By default, an LLC in Connecticut is considered a pass-through business entity and the business income is passed to the owners who then pay personal income taxes. However, if this structure isn’t working for a business, it has the option to switch.
Affordable to Form and Run
Forming a Limited Liability Company in Connecticut doesn’t cost a bomb. You simply need to pay state filing fees, fill out an application, and get your LLC in Connecticut registered. It costs just $120 to get your LLC formed in Connecticut.
Several states have even lower filing fees for LLCs, making them even more affordable. And the annual maintenance and running costs of LLCs are lower than those of Corporations. Staying compliant is also easier for LLCs.
Ease of Formation and Management
Forming an LLC in Connecticut and other states typically requires fewer steps and legal hassles than forming a C-Corporation or an S-Corporation. Less paperwork is involved as well. This makes Limited Liability Companies super easy to form.
Running an LLC in Connecticut is also much easier. In fact, members can decide among themselves how they want to run their business. Corporations, on the other hand, are guided by predefined rules and regulations that they must follow.
Ownership Flexibility
Several business entities like Partnerships or S-Corps have strict rules on the number and type of owners they can have. S-Corps, for example, can have no more than 100 shareholders and they should not be a non-resident.
An LLC in Connecticut has no such restrictions imposed on the ownership structure. Connecticut LLCs can have a single member or multiple members. The members of an LLC can be both individuals (foreign or domestic) or organizations.
Ability to Hold Assets and Enter Contracts
An LLC in Connecticut, like a Corporation, is an entity separate from its owners, even if it’s a pass-through entity. This means that it has the ability to enter into business contracts with vendors, investors, and other stakeholders.
It makes it easy for an LLC to hold assets and secure business funding in its own name. This helps protect LLC members as they’re not the ones taking loans or entering into contracts and are, therefore, not liable for them.
Tailor Brands Connecticut LLC Formation Services: Free + Paid Plans
Tailor Brands offers free LLC formation services, including filing a Connecticut Certificate of Organization with the state. Additional services are available through their paid plans.
Below is an overview of each plan:
Lite Plan
If you’re only searching for basic filing for your LLC in Connecticut with no extra features, this plan is ideal. Here’s what’s included:
- Preparation and filing of LLC formation documents: Tailor Brands offers this service for free within the state. You’ll only be responsible for the state filing fee, which remains the same across all formation platforms.
- Business coaching program: This plan includes access to basic business coaching resources. These resources can help new business owners understand the fundamentals of running an LLC in Connecticut.
Price: $0 (plus state filing fees)
Essential Plan
The Essential Plan includes all the services in the Lite Plan, plus additional tools to help your LLC in Connecticut grow and thrive.
- Operating agreement assistance: This plan includes help drafting an operating agreement, a vital document outlining the management structure and decision-making processes for your LLC in Connecticut.
- Annual compliance reminders: Tailor Brands will send you alerts for necessary report filings and updates to keep your LLC in Connecticut compliant with state regulations.
- Expedited processing: For those who need faster results, the Essential Plan reduces the processing time for forming your LLC in Connecticut to just two business days. This helps launch your business quickly.
- Bonus $30 Amazon gift card: This plan includes a $30 Amazon gift card, which you can use towards the initial costs for your LLC in Connecticut. Tailor Brands offers this bonus to support new businesses.
Price: $199/year
Elite Plan
The Elite Plan is Tailor Brands’ premium offering, designed for entrepreneurs who want advanced tools for branding their LLC in Connecticut.
- Bonus $50 Amazon gift card: Similar to the Essential plan, with the Elite Plan, you’ll receive a $50 Amazon gift card to help fund initial business purchases. This bonus adds extra value to the package.
- Unique brand logos: This plan offers up to eight unique logo designs tailored to your business. A professional logo enhances your brand identity and helps your LLC in Connecticut stand out.
- 1-year domain and website tools: With the Elite Plan, you get a free domain for a year, along with website-building tools, to help your LLC in Connecticut establish a strong online presence.
- Business card and social media tools: Tailor Brands includes tools for creating and sharing digital business cards. The plan also features a social media post maker for creating branded content for your LLC in Connecticut.
Price: $249/year
Why Choose Tailor Brands to Form an LLC in Connecticut
Starting a new business can be taxing, but Tailor Brands makes things easier for you. With its unmatched expertise, you’re bound to get a hassle-free experience. Here’s why you should choose Tailor Brands.
Completely Free
Tailor Brands offers LLC formation services at no cost. There are no hidden fees, service charges, or extra expenses. You only need to cover the state filing fees, making it an affordable option to set up your LLC in Connecticut.
Stress-Free Process
Partnering with Tailor Brands means a smooth and hassle-free experience. You just provide the required information, and they’ll manage the process of filing your LLC in Connecticut.
Access to Experts
You’ll benefit from working with skilled professionals who specialize in business formation. Their expertise ensures your application is handled efficiently and approved quickly, saving you time and effort.
FAQ
To start an LLC in Connecticut you need to fill out and submit an application, along with all the required documents, to the Connecticut Secretary of State. For processing this application, the state charges a filing fee of $120.
However, if you seek outside counsel or any third-party services for forming your LLC in Connecticut, you may need to pay more for their services. A good alternative is to use Tailor Brands’ free LLC formation services to keep the costs low.
According to CNBC’s Top States for Business report for 2023, Connecticut ranks 31 among the various states in the US. This shows that in terms of business-friendliness, it lies somewhere in the middle range.
While it’s not one of the best states to form an LLC, it’s not the bad either.
In terms of costs, you need a $120 initial filing fee and an $80 annual report filing fee to keep your business in good standing with the state.
Here are some of the key benefits of forming an LLC in Connecticut:
- Personal Liability Protection: LLC members are not personally responsible for the liabilities and debt of an LLC and their personal assets are protected.
- Flexible Tax Structure: An LLC in Connecticut can choose to be taxed as a Partnership, Sole Proprietorship, S-Corp, or a C-Corp to get different tax structures and benefits.
- Affordable to Form and Run: The formation and annual maintenance costs of an LLC in Connecticut and most states like Delaware are typically lower than those of a Corporation.
- Ease of Formation and Management: Forming an LLC in Connecticut is a simple and hassle-free process that doesn’t require too many steps to complete.
- Ownership Flexibility: Compared to entities like S-Corps, an LLC offers a lot of flexibility on who can be a member and how many members it can have.
- Ability to Hold Assets and Enter Contracts: Being a separate legal entity from its owners, an LLC in Connecticut can enter contracts and buy assets in its own name.
Unless you choose your LLC in Connecticut to be treated as a C-Corporation, it doesn’t need to pay any corporate taxes or face double taxation. Your Connecticut LLC’s income will pass through to the owners, who will then pay personal income taxes on their total incomes.
The members of your LLC in Connecticut will also need to pay a self-employment tax, over and above their personal income tax returns.
An LLC in Connecticut needs to pay a corporate tax only when it chooses to be taxed as a C-Corporation. The current corporate tax rate for Connecticut is 7.5%. Such LLCs will also need to pay a sales tax.
Here is the step-by-step process for starting an LLC in Connecticut:
- Choose a unique and memorable name for your LLC in Connecticut
- Reserve the chosen name for your LLC in Connecticut and secure a matching web domain
- Appoint a Connecticut registered agent for service of process
- Create an operating agreement for your LLC in Connecticut with clear governance rules
- File your Connecticut LLC Certificate of Organization
- Get a Federal Employer Identification Number for your business
- Open a bank account for your new business
- Find your NAICS code and obtain business permits
- Choose how you want your LLC in Connecticut to be taxed by the IRS
- File for a DBA if you want a shorter and more marketable name for your LLC in Connecticut
- Launch an SEO-friendly business website
- Follow compliance requirements to maintain your LLC’s status
Sounds overwhelming? Don’t worry, we’ve got you covered. Use Tailor Brands’ free LLC formation services and let experts take care of the process for you. All you need to do is pay the state filing fee and provide all the required information and they’ll take care of the rest of the process for setting up your LLC in Connecticut.
Form an LLC in Connecticut for Free with Tailor Brands
Tailor Brands has been helping several businesses and offers unmatched services and hassle-free experiences. It makes starting a business a breeze.
$0 + State Filing Fees