Start a Business in Connecticut
Corporate Compliance by Local Corporate Guides®
Starting a business in Connecticut can and should be easier than you think. You file simple forms with the secretary of state, and your business is formed! Obviously there’s a few more things than that, but if you’d like to start your own business yourself, you will find it easy to hire us as your registered agent and you’ll find all the forms you could file to start a business in Connecticut, along with great filing instructions on the quickest and cheapest ways to start your business in Connecticut.
How to Start a Business in Connecticut
You file certificate of incorporation for a Connecticut corporation or articles of organization for a Connecticut LLC with the CT Secretary of State.
You obtain a federal tax ID number (FEIN or EIN) with the IRS after you have confirmation and filed articles from the State of Connecticut showing your approved Connecticut business.
Opening a business banking account under your new Connecticut business name should be easy with these two items.
If you’re going to have employees or need to withhold sales tax, you will probably need to register with the CT Connecticut Department of Revenue Services and Connecticut Department of Labor. We provide all these links in your online account.
If your business trade requires a license, you can learn more using the Connecticut Licensing Info Center. (Most businesses don’t.) But if you do, these quick links and contact details are in your online account.
Some local cities or counties have a general license, but most don’t.
You obtain a local trade license if the city or county you’re going to be working in requires it.
If you’re going to have an office or shop you might need an approval from the city zoning for your type of business in that location.
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If you want to start a business in Connecticut yourself, you can just hire us as your Connecticut registered agent, and you’ll instantly have the Connecticut LLC or corporation forms to file along with filing instructions on the quickest, cheapest, and most efficient way to incorporate a Connecticut corporation or form a Connecticut LLC. You’ll get the ongoing support of our online tools, reminders and the support of a professional Connecticut registered agent service.START YOUR CONNECTICUT BUSINESS TODAY
Connecticut LLC vs Corporation
Traditionally, small business owners prefer LLCs—they have fewer annual requirements, flexible management, and great tax options which make them easier to manage. Corporations typically require more maintenance, but are attractive for large business owners who want to sell stocks to investors. The established, well defined business structure is also appealing.
But, what about Connecticut? Are there benefits for a Connecticut LLC vs a Connecticut corporation?
Overall, Connecticut LLCs are cheaper and easier to maintain than Connecticut corporations. The cost for filing a Certificate of Organization is $120 compared to $250 for a Certificate of Incorporation. Also, if your corporation authorizes more than 20,000 shares, you could end up paying a higher filing fee. Both entities are required to file annual reports; however, LLCs will pay significantly less than corporations—$80 vs $150.
Connecticut corporations also tend to get hit harder during tax season—paying 7.5% of their annual income—plus an additional 10% if earnings exceed $100 million. The rate for personal income will vary, but tops out at 6.99%. Also, keep in mind that corporations are often subject to double taxation.
Whether you start a Connecticut LLC or a Connecticut corporation will really depend on your personal business goals. If you want to attract investors and don’t mind a little higher fees, then a corporation is definitely your best choice. But, if owning a smaller business is more your goal, then you should consider a Connecticut LLC.
If you want a corporation, you file a Connecticut Certificate of Incorporation:
The Connecticut certificate of incorporation costs $250 with the Connecticut Secretary of State. You also have to file an initial report which costs $150 We custom draft your Connecticut certificate of incorporation. A Connecticut corporations articles of incorporation must include:
- The Connecticut Corporation must have a corporate ending such as INC, Incorporated, Corporation or a different variety
- The Connecticut corporation name must be different than already registered Connecticut corporations.
- The number of shares the Connecticut Corporation is authorized to issue
- If the corporation has more than one class of shares, it must designate each class and the number of shares authorized
- The terms, limitations and rights associated with each class of shares
- The name and office address of the registered agent in Connecticut
- The registered agent’s signature accepting the appointment
- The name, address, and signature of each incorporator of the Connecticut Corporation
Connecticut does not require original signatures on new CT corporation filings. The filed articles will be mailed to the filer’s address on the articles.
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If you want a LLC, you file Connecticut Articles of Organization:
- The business name must have a LLC ending or variation of it
- The LLCs name must be different than already registered Connecticut companies.
- The purpose or business of the Connecticut LLC
- Indicate if the LLC is to be managed by managers
- List the name, title, and address of at least one member or manager
- The principal office address of the CT LLC needs to be a physical address. However, you may list a PO box as the LLCs mailing address
- The Connecticut registered agent name and physical address
- The CT registered agent needs to sign the articles to accept the appointment
- The Connecticut organizer must sign and date
Connecticut does not require original signatures on new CT LLC filings. You’ll get the filed articles mailed back to you after the state approves your filing.