How to Form an LLC in Connecticut: A Step-by-Step Guide

Forming a Limited Liability Company (LLC) in Connecticut can be a complex process, but with the right guidance, it can be done efficiently. In this article, we will walk you through the steps to form an LLC in Connecticut, including the necessary documents, fees, and procedures.

An LLC is a popular business structure that offers personal liability protection and tax benefits. To form an LLC in Connecticut, you will need to file articles of organization with the Secretary of the State, obtain any necessary licenses and permits, and create an operating agreement.

Step 1: Choose a Business Name

The first step in forming an LLC in Connecticut is to choose a unique and memorable business name. The name must be distinguishable from other business names in the state and must not contain any words that are prohibited by the state. You can check the availability of your desired business name by searching the Connecticut Secretary of the State's database.

Once you have chosen a business name, you will need to file a name reservation application with the Secretary of the State. This will reserve your business name for a period of 120 days, giving you time to complete the LLC formation process.

Step 2: File Articles of Organization

The next step in forming an LLC in Connecticut is to file articles of organization with the Secretary of the State. The articles of organization must include the following information:

• Business name and address
• Manager or member information
• Business purpose
• Duration of the LLC
• Signature of the organizer

You can file the articles of organization online or by mail. The filing fee is currently $120, and the process typically takes 2-3 business days.

Step 3: Obtain Licenses and Permits

Depending on the type of business you are forming, you may need to obtain licenses and permits from the state of Connecticut or local authorities. For example, if you are forming a restaurant or bar, you will need to obtain a liquor license from the Connecticut Department of Consumer Protection.

You can check with the relevant state or local agency to determine if any licenses or permits are required for your business.

Step 4: Create an Operating Agreement

Once you have formed your LLC, you will need to create an operating agreement that outlines the ownership and management structure of the business. The operating agreement should include the following information:

• Ownership percentages
• Management structure
• Decision-making processes
• Financial responsibilities

The operating agreement is an internal document that is not filed with the state, but it is an important document that helps to establish the rules and procedures for your business.

Step 5: Obtain an EIN

The final step in forming an LLC in Connecticut is to obtain an Employer Identification Number (EIN) from the Internal Revenue Service (IRS). The EIN is a unique number that is used to identify your business for tax purposes.

You can apply for an EIN online or by mail. The application process is free and typically takes 2-3 business days.

Conclusion

Forming an LLC in Connecticut can be a complex process, but with the right guidance, it can be done efficiently. By following the steps outlined in this article, you can form a successful LLC in Connecticut and take advantage of the benefits that this business structure offers.