How to Start Your Own LLC in Connecticut

1. Name Your LLC

Choosing a business name is a critical first step. Your name must be unique, memorable, and clearly reflect what your business does. Here's how to approach it:

• Decide on a Business Concept: Be clear on your business activities before naming your LLC.
• Ask People You Know for Suggestions: Share your ideas with trusted friends or colleagues for feedback.
• Do a Web Search: Check domain availability and ensure no similar businesses exist in Connecticut that could create confusion.
• Use an Online Name Generator: For inspiration, but don't rely solely on it.

Check Name Availability in Connecticut

Once you have a few options, verify availability:

Connecticut State Name Search: Ensure the name isn't already in use.

Connecticut LLC Naming Rules

• Must include "Limited Liability Company" or "LLC" / "L.L.C."
• Cannot include terms that could confuse it with a government agency.
• Words like "bank," "insurance," or "university" require state approval.
• Must be distinguishable from other business names in Connecticut.

Check Federal Trademarks

Confirm the name is not federally trademarked via the USPTO.

Name Reservation

File a Name Reservation through the Connecticut Secretary of State Business Services website (requires a CT.gov account).

• Cost: $60
• Reservation valid for: 120 days
• Can also file a paper form.

Doing Business As (DBA / Trade Name)

To operate under a name different from your LLC, register a trade name with the town clerk where your business operates.

• Filing fees vary by town (typically $10–$20).
• This allows multiple product lines or bank accounts under separate business names.

2. Select a Registered Agent

Connecticut law requires LLCs to designate a registered agent to accept legal, tax, and financial documents.

Registered Agent Requirements

• Must be 18 years or older
• Must have a physical address in Connecticut
• Must be available during normal business hours
• If a business entity, must be registered to operate in Connecticut

Many LLC owners hire a registered agent service for convenience and compliance. You can also serve as your own agent if you meet the above criteria.

3. Determine Your Management Structure

LLCs can be member-managed or manager-managed:

Member-Managed

• Members handle day-to-day operations. Best for small LLCs with active members.

Manager-Managed

• Designated managers (who may or may not be members) handle operations. Suitable for multiple members where some prefer a passive role.

In Connecticut, an LLC defaults to member-managed unless otherwise stated in the Certificate of Organization.

4. File a Certificate of Organization

To officially form your LLC, file a Certificate of Organization with the Connecticut Secretary of State.

Required Information

• Filing party name and address
• LLC name
• Principal office address
• Registered agent information and office address
• Member or manager information
• Business email
• NAICS code

Filing Fee & Processing

• Filing Fee: $120
• Processing Time: Typically 3–5 business days

Connecticut Secretary of State Contact

Business Services Division
PO Box 150470, Hartford, CT 06115-0470

Phone: (860) 509-6200
Email: bsd@ct.gov

5. Draft an Operating Agreement

Although not legally required, an Operating Agreement is strongly recommended. It outlines member duties, ownership, and operating procedures.

Typical Elements

• LLC name and principal address
• Duration of LLC
• Registered agent details
• Membership and voting rights
• Profit and loss allocation
• Procedures for adding/removing members
• Dispute resolution and policies
• Record-keeping and communication

Templates are available online, but consulting an attorney ensures legal protections.

6. Obtain an Employer Identification Number (EIN)

The IRS assigns an EIN for tax purposes.

Required if:

• Multi-member LLC
• Hiring employees

Application: Complete online via the IRS website.

The "responsible party" must be a natural person who controls the LLC's funds or assets.

7. Obtain Business Licenses and Permits

Your LLC may require licenses or permits at federal, state, and local levels, depending on your business activities:

Common Requirements

• Federal: OSHA, health licenses, industry-specific permits
• State: Check Connecticut Department of Consumer Protection for licenses
• Local: Building, zoning, DBA, fire, and sign permits

Selling taxable goods/services requires a sales tax permit.

Compliance is critical to avoid fines or penalties. Consider consulting a business attorney or using services like MyCorporation to ensure full licensing.

8. Determine Your Tax Status

LLCs are pass-through entities by default. Profits/losses flow to members' personal tax returns:

Default Tax Treatment

• Single-member LLC: Taxed as a sole proprietorship; report income on Schedule C; pay self-employment taxes.
• Multi-member LLC: Taxed as a partnership; file Form 1065; each member reports their share on personal returns.

Optional Corporate Election

• C-Corporation (Form 8832): Corporate tax on profits; dividends taxed to members (double taxation).
• S-Corporation (Form 2553): Pass-through taxation; members must take reasonable salary; can reduce self-employment taxes.

Connecticut Taxes

• No state income tax on LLC itself (pass-through)
• Collect and remit sales tax on taxable goods/services
• Withhold state payroll taxes if you have employees

Other LLC Requirements

Open a Business Bank Account

Keep personal and business finances separate. Most banks require:

• EIN
• Certificate of Organization
• Operating Agreement (sometimes)

Apply for a Business Credit Card

Helps build business credit and pay startup expenses.

Get Business Insurance

Common policies:

• General liability
• Professional liability (E&O)
• Workers' compensation
• Property/equipment coverage
• Commercial auto
• Business Owner's Policy (BOP)

Maintain LLC Records

Keep:

• Formation documents
• Operating Agreement
• Vendor contracts
• Legal and financial documents

Annual Reporting

• Annual Report: File by March 31 each year
• Fee: $80

Maintaining a valid registered agent is also required for good standing.

Connecticut LLC FAQs