If you are based in Connecticut and want to start an LLC, then this guide will be perfect for you. At the end of this guide, you will know how to form an LLC in Connecticut and can do so by yourself or with professional help. Either way, you’ll be familiar and your LLC formation journey in Connecticut will be much smoother. For business owners that want to form an LLC in Connecticut, here are the steps that you should follow for a successful LLC formation in Connecticut.
1. Selecting a name for your LLC
The first and most crucial step for a successful LLC formation in Connecticut is to choose a name for your company. According to the law in Connecticut, the name of your LLC must have words like “Limited Liability Company” or any form of its abbreviations such as “LLC” or “L.L.C.”
Your LLC’s name mustn’t have words like FBI, Treasury, State Department, etc. which could create confusion between your LLC and a government agency. The name of your LLC must also be unique and distinguishable from other Connecticut business entities. To ensure your company’s name is unique you may search the Connecticut Secretary of State business name database.
2. Choosing a registered agent
The next step will be to choose a registered agent for your LLC in Connecticut. It is a requirement for every Connecticut LLC to have an agent for service of process, also known as a registered agent. A registered agent can be an individual or a business entity that agrees to receive important tax forms, legal documents, notice of lawsuits, and official government correspondence on behalf of your LLC.
The registered agent of your Connecticut LLC must be a resident of Connecticut or a Connecticut business entity, such as a registered agent service. You can also choose an individual from your company or yourself to be the registered agent as long as the requirements are met.
3. Filing the Certificate of Organization
After appointing a registered agent for your Connecticut LLC, it is time to file the Certificate of Organization with the Connecticut Secretary of State. This can be done so online, by mail, or in person. There is also a state filing cost of $120 payable to the Secretary of State, regardless of how you plan to file the Certificate of Organization.
In the Certificate of Organization, you will need to include the name and address of the LLC’s organizer, the name and address of the LLC, the name, address, and signature of the LLC’s registered agent, the name and address of minimum one manager or member of your Connecticut LLC, the email address of your LLC and also your signature if you are the organizer.
4. Creating an Operating Agreement
While an LLC operating agreement is not a requirement in Connecticut, it is still highly recommended to have one. The operating agreement of your Connecticut LLC is essentially an internal document that outlines the ownership and operating procedure of your LLC. It also establishes the rights and responsibilities of the members and managers.
It is a good practice to have an operating agreement for your LLC in Connecticut because a detailed operating agreement ensures that all the parties involved in your LLC are on the same page and reduces the chances of conflicts in the future. The operating agreement is for your LLC only and doesn’t have to be filed with the Certificate of Organization.
5. Getting an EIN
EIN is short for Employer Identification Number and regardless of whether your LLC has employees or not, it still needs to have its own EIN. The EIN is assigned by the Internal Revenue Service (IRS) to assist in identifying businesses for tax purposes. You can get an EIN for your LLC through an online application on the IRS website and no filing fee is required.
The EIN has another name and that is the Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN), but all of them have the same purpose and meaning. An EIN is essential for your Connecticut LLC if you intend to open a business bank account, file and manage Federal and State Taxes, or hire employees.
By following the steps listed above, forming your LLC in Connecticut will be a walk in the park. However, if you wish to save some time and effort, you can always opt for LLC formation services and some of them provide a comprehensive service at a reasonable price.