Best Connecticut LLC Services Reviewed by ZenBusiness

How to Set Up a Connecticut LLC on Your Own

Technically speaking, you don’t have to use an LLC formation service like ZenBusiness or LegalZoom. These services are incredibly helpful, but you can save money by completing the process yourself.

You can read our complete guide to DIY an LLC setup in Connecticut, but here’s a quick look at the process: 

Choose a business name

Every LLC in Connecticut needs a name that’s memorable and gives potential clients a good idea of what goods or services are available. The name also needs to be unique — both for legal reasons and so your business stands out from the competition.

Appoint a CT registered agent

As we’ve mentioned in this guide, every LLC needs an agent who can accept service of process on your behalf. In all states, you can act as your own registered agent as long as you have a physical address in the state. That said, we generally recommend that you appoint someone else (like an online service) to act as your agent.

File the Certificate of Organization

This document, once filled out and filed, officially forms your business in the state of Connecticut. You’ll need to provide some important information, including your contact information, your business address, signatures for your LLC’s members, and more. Connecticut has a $120 filing fee.

Setting up the LLC is easy as 1-2-3; it’s the maintenance requirements that are a bit more complicated:

Register for and pay taxes

If you have employees, you’ll need to get an Employer Identification Number from the IRS. Then there are state-specific taxes, too. Connecticut’s individual rates range between 5-6%. If you’re taxed as a corporation, though, you’ll need to pay the Corporation Business Tax; in most cases, the rate is 7.5%. You will also need to account for sales taxes (6.35%) and other miscellaneous taxes. More information can be found at the Connecticut State Department of Revenue Services.

Get licenses and permits

There’s no general state business license in Connecticut, but that doesn’t mean you won’t need to get professional licenses. Many of them are administered by the Department of Consumer Protection.

Create an operating agreement

Even single-member LLCs should create a “master document” that sets out how the business will operate, both now and in the future.

File your annual report

Each year, your LLC will need to file an annual report to update the state about the standing of your business. Currently, Connecticut has an $80 filing fee.

Obtain business insurance

Every business with employees needs to maintain workers’ compensation insurance and a commercial vehicle policy for company-owned vehicles. You may also want to get a general business liability policy, too.

Get a business bank account

You should sign up for a business bank account so you can write checks and make purchases in the name of the business instead of pulling from your personal accounts (a legal no-no).

This is just the tip of the iceberg, though. For more detailed guidance, we recommend contacting an attorney or checking out the full Connecticut LLC Formation Guide.

What Is a Connecticut LLC?

LLCs are formal legal entities that are typically taxed similarly to sole proprietorships and general partnerships, in that the owners include any company profits or losses into their personal returns — the LLC itself does not owe income taxes. For more a more in-depth description see: What is an LLC?

The Total Cost of Forming and Maintaining an LLC in Connecticut

In addition to the costs of a business formation service or hiring an attorney (which are optional, as we’ve discussed), there are quite a few other required and optional expenses when forming and maintaining a Connecticut business. You cannot form an LLC in Connecticut without filing the Certificate of Organization, the document that officially registers your business within the state. This filing costs $120 to submit.

Your LLC will also need to file the Annual Report every year. This form essentially keeps the state up-to-date about some vital information about your business. It costs $20 to submit. Read more about Connecticut costs – Connecticut LLC costs.