How to Start a Corporation in Connecticut
To start a Connecticut corporation, you must file a Certificate of Incorporation with the Connecticut Secretary of State, pay a $250 minimum filing fee, and obtain an EIN from the IRS. The complete steps to incorporating in Connecticut are as follows:
- File a Connecticut Certificate of Incorporation
- Pay the Connecticut Secretary of State $250
- Wait for a copy of your approved Certificate to be returned
- Get a Federal EIN tax ID for the corporation
- Create Connecticut corporate bylaws
- Take these documents to the bank and get a Connecticut corporate bank account
- Register with the Connecticut Department of Revenue Services
- File an Organization and First Report within 30 days ($150)
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Connecticut Certificate of Incorporation free download. When you're done filling out the form, submit it to your state.
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2 Day Connecticut Corporation For $475 Total
How to File a Connecticut Certificate of IncorporationTo form a Connecticut corporation, you file the Certificate of Incorporation in the following steps:
What is the Cost of a Connecticut Corporation?
Starting a Connecticut corporation will set you back $250 in initial state fees. While the base filing fee for your Certificate of Incorporation is $100, there’s a minimum $150 franchise fee that must be paid at the same time. (Corporations with more than 20,000 shares pay an additional 1/5 to 1/2 cent per share). Expediting is available, but it won’t significantly speed up an online filing. If you file by mail, however, you might consider paying the $50 fee for 24-hour processing.
Hire Northwest and your total, out-the-door cost is $475, including state filing fees.
Note: Within 30 days, you’ll also have to shell out $150 to file your Organization and First Report Form.Get Started
What is an Organization and First Report Form?
Within 30 days of forming your business, your Connecticut corporation is required to submit an Organization and First Report Form. This form is basically an initial report—you confirm your contact info and list organizational information (directors, officers, and the date of your organizational meeting). This form comes with a $150 filing fee and can be filed online.
How much does a corporation in Connecticut cost each year?
Every year, Connecticut corporations have to shell out $150 to file an Annual Report.Get Started
What are the Taxes for a Connecticut Corporation?
Technically, Connecticut doesn’t have just a plain corporate income tax. Instead, the state has its “Connecticut Business Tax” for C corporations. This tax is the greater of either your corporation’s net income base (taxed at 7.5%) or capital base (taxed at 0.31%). There is a minimum tax of $250. Also, if you’re really rolling dough, note that businesses with $100 million or more in annual gross income also pay a 10% “surtax.”
Have an S corporation? You won’t pay the Connecticut Business Tax, but you will be subject to the state’s Business Entity Tax (BET), which has a flat rate of $250 a year.
The state sales tax rate is 6.35% across the state. There are a handful of goods and services that have specialty tax rates though, such as a 9.35% rate for short-term vehicle rentals.
Is a Registered Agent Required for a Connecticut Corporation?
Yes, every Connecticut corporation needs a Connecticut registered agent. Some people try to save a few bucks by being their own registered agent—after all, you don’t get rich wasting money. However, the headache you gain and the privacy you lose are something to carefully consider. If you’re your own registered agent, you’ll have to publicly list a physical address that will become a part of the permanent record of your Connecticut corporation. Unfortunately, publicly-listed addresses are common targets for data-sellers and spammers. You would also have to be regularly available at the registered address in case a process server drops by. Missing legal notifications could cost your corporation much, much more than a registered agent fee.
A wiser investment? Hire Northwest. We’ll list our address throughout your Certificate of Incorporation. We’ll be ready and waiting to accept your notices, and we’ll scan and send them to you the same day, so you can run your business from wherever you want to be.Get Started
Connecticut Corporation Versus Connecticut LLC:
Starting a corporation in Connecticut costs a bit more than starting an LLC. With the state filing fee, franchise tax, and Organization and First Report filing, corporations pay out $400 in state fees just to get started while LLCs only pay $120. However, maintaining either entity often costs about the same. LLCs pay a $250 Business Entity Tax each year, and C corporations have a minimum Business Tax of $250.
Although a little pricier overall, corporations do have some advantages. Corporations are one of the oldest business entities. Because they’ve been around so long, they’re generally better understood and respected. Their long legal history also means most court cases have clear precedent, so there are fewer surprises in the courtroom. Stocks also open up more possibilities for corporations, such as offering preferred stock to more cautious investors (or going big and joining the ranks of Wall Street). As a result, corporations are common choices for large businesses or those that hope to scale quickly. LLCs, on the other hand, are popular for small businesses. Curious if a Connecticut LLC might be a better fit for you? Here’s information on starting an LLC in Connecticut.
Do I Need a Tax ID Number (EIN) for a Connecticut Corporation?
Yes—the IRS requires corporations to get a federal tax ID (also known as an EIN or FEIN). The IRS uses this number to identity your corporation on federal tax filings. Your EIN is useful for more than just federal filings though—you’ll likely need your EIN to open a bank account, apply for local licenses or permits, or even register for a sales tax license from the Department of Revenue Services. In some cases, you can use your personal social security number instead—but in the age of data mismanagement and identity theft, why risk your personal information? Getting an EIN is fairly simple. You can fill out a free application directly with the IRS. Or, save yourself a step and hire Northwest. Just add on EIN service during checkout when you sign up for our services.
Does a Connecticut Corporation Need a Business License?
Connecticut doesn’t have a general, statewide business license, but if you plan to engage in any sales, you’ll need to register with the Connecticut Department of Revenue Services.
Note that your corporation may be subject to local business licensing requirements. For example, if you engage in any business in the City of Norwalk, you’ll have to get an annual business license.
What is a Connecticut Annual Report?
Your Connecticut Annual Report is a form your corporation files each year to update the state on your corporation’s contact and ownership information. The report and $150 fee are due at the end of your anniversary month (the month you started your business). While there’s no late fee, you’ll lose your good standing if you file late. And if your report remains unfiled, the state will eventually dissolve your corporation. No worries though—Northwest will help ensure your corporation stays in compliance. We’ll send you reminder notifications for your reports. We can even take this annoying task off your plate entirely when you hire us to file your Annual Reports for you each year.
Connecticut Corporation Certificate of Incorporation Requirements
Your name must include “Corporation,” “Incorporated,” “Company,” “Limited,” an abbreviation of one these words, or a designation of similar meaning in another language, such as the Italian “Societa per Azioni.” Tip: Most businesses keep it short and sweet with “Inc” or “Corp.”
List the number of shares you’d like to create. You have to authorize at least one. If you authorize more than 20,000, your franchise tax fee will increase. If you have more than one class of shares, you’ll also have to include the details (rights, limitations, etc.) about each class.
You can either list an individual (such as yourself) or a business that provides registered agent service (such as Northwest). Personally, we’re fans of Northwest.
Registered Agent Address
The address where your agent will be available must be a Connecticut street address and will become part of the permanent record of your corporation. Tip: When you hire Northwest, our address will go here.
Registered Agent Acceptance
If you file with a paper form, your registered agent will have to sign the form, which can really slow things down if your agent doesn’t happen to be in the same room when your filling out your Certificate of Incorporation. If you file online, your registered agent still has to confirm their acceptance, but the process is easier. The agent will get an email with an acceptance link they have to click within 48 hours. Hire us, and we’ll take care of this within minutes.
Benefit Corporation Status
If you’re a benefit corporation, you’ll have to note this on your Certificate. A benefit corporation is a corporation created for general public benefit (much like a non-profit except that you can still make a bit of money). These corporations are subject to the rules of the Benefit Corporation Act.
Tip: Most corporations aren’t benefit corporations.
The Secretary of State sends Annual Report reminders via email. Remember that your Certificate of Incorporation is a public document, meaning any email you list will likely end up in the hands of data sellers. Don’t want an inbox clogged with spam? We allow our clients to list our email address. We’ll send you reminder notifications for your Annual Reports, and you won’t have to ruin your own email or create a business email you’ll never check.
Your incorporator is just the person who signs and submits your Certificate of Incorporation. Incorporators have to include their name, address, and signature. Your incorporator doesn’t have to be a director, officer, or anyone in your corporation—we’ll be your incorporator when you hire Northwest.