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

Are you thinking of forming a Limited Liability Company (LLC) in Connecticut? An LLC can provide personal liability protection, tax benefits, and flexibility in ownership and management. In this article, we will guide you through the steps to form an LLC in Connecticut.

Step 1: Choose a Business Name

The first step in forming an LLC in Connecticut is to choose a unique and available 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 the name using the Connecticut Secretary of the State's website.

Step 2: File Articles of Organization

Once you have chosen a business name, you must file Articles of Organization with the Connecticut Secretary of the State. The Articles of Organization must include the name and address of the LLC, the purpose of the LLC, and the names and addresses of the LLC's members. You can file the Articles of Organization online or by mail.

Step 3: Create an Operating Agreement

After filing the Articles of Organization, you must create an Operating Agreement that outlines the ownership, management, and operation of the LLC. The Operating Agreement should include the rights and responsibilities of the members, the management structure, and the procedures for making decisions.

Step 4: Obtain an EIN

An Employer Identification Number (EIN) is a unique number assigned to the LLC by the IRS for tax purposes. You can apply for an EIN online or by mail. The EIN is required for opening a business bank account, hiring employees, and filing taxes.

Step 5: Open a Business Bank Account

Once you have obtained an EIN, you must open a business bank account in the name of the LLC. This will help you to keep your personal and business finances separate and will make it easier to manage your business finances.

Step 6: Obtain Licenses and Permits

Depending on the type of business you are operating, you may need to obtain licenses and permits from the state or local government. You can check with the Connecticut Department of Consumer Protection or the local government to determine what licenses and permits are required.

Step 7: File Annual Reports

Every year, the LLC must file an annual report with the Connecticut Secretary of the State. The annual report must include the name and address of the LLC, the purpose of the LLC, and the names and addresses of the LLC's members.

Conclusion

Forming an LLC in Connecticut can provide personal liability protection, tax benefits, and flexibility in ownership and management. By following the steps outlined in this article, you can successfully form an LLC in Connecticut and start your business.