Your first consideration when choosing a name for your LLC is that it be unique from any other business in the state of Connecticut. You can quickly and easily check your company’s potential name options at the Connecticut Secretary of State business name database. For a $60 fee, you can also reserve a company name for 120 days. To do so, you’ll need to submit the Application for Reservation of Name formby postal mail.
In order to comply with Connecticut state law, your company’s name must contain some form of the term “Limited Liability Company.” This can appear in several different formats from the whole phrase written out to several appropriate abbreviations. “LLC,” “L.L.C.,” “Limited Liability Co.,” “Ltd. Liability Company,” and “Ltd. Liability Co.” are all considered appropriate ways to adorn your moniker. Professional LLCs must contain P.L.L.C., PLLC, or Professional Limited Liability Company. Limited may be abbreviated “Ltd” and Company may be abbreviated “Co,” and the name must be distinguishable from all other active business names on record with the state.
The words “bank,” “trust,” “trustee,” “incorporated,” “inc.,” “corporation,” “corp.,” “insurer,” “insurance company,” or any wording that suggests the company is an insurance business are not allowed in Connecticut without providing a lengthy list of supporting documents.
The state of Connecticut requires that any LLC have a registered agent for service of process. This means your LLC must have an entity that agrees to physically accept any legal papers on the company’s behalf should it be sued.
The registered agent does not have to be an individual person and can be any resident of the state of Connecticut over the age of 18 (including a member or manager of the LLC) or a business entity authorized to do business in Connecticut so long as the agent has a physical street address within the state.
An IRS Employer Identification Number (EIN) is required of your LLC unless it is a single-member LLC with no employees or it is taxed as a corporation as opposed to a sole proprietorship. Obtaining an EIN is as easy as completing the application on the IRS website.
It’s possible your company will need to register with the Connecticut Department of Revenue Services. You can either register online or by mail using the Business Taxes Registration Application Form REG-1. Whether or not your company needs to follow this step will depend on the exact types of taxes it will be collecting and/or has been collecting from the state and whether you have employees. You’ll need a seller’s permit through the Connecticut Department of Revenue Services if you’re selling a physical product; this will allow you to collect sales tax on taxable sales. Additionally, businesses with employees need to register for Unemployment Insurance Tax with the Connecticut Department of Labor Tax and Benefits System and Employee Withholding Tax with the Connecticut Department of Revenue Services.
Connecticut also imposes a Business Entity Tax (BET) every other year of operation. The tax is a flat fee of $250. You can go to the Business Entity Tax webpagefor more information.
If yours is a foreign LLC, also referred to as an out-of-state LLC, wanting to do business in the state of Connecticut, you’ll need to follow all the aforementioned steps.
The main difference is the form required to make your LLC legal to operate is referred to as the Application for Registration, Limited Liability Company-Foreign.
You can file paperwork online or by mail using the Connecticut Foreign Registration Statement form. The filing fee is $120. Once all the other requirements are met, your foreign LLC will be fully operational.
The location of and specific type of business you’re creating can potentially require additional federal, state-authorized, and/or local business licenses. You can obtain federal licensesand use the Connecticut Business Response Centerto determine the appropriate licensing for your business.
Since business licenses and permits are issued at all levels of government—federal, state, and local—and for many reasons (health, building, signage, etc.), you should do careful research to find out what licenses and permits you need. You can also hire a professional service to do it for you.