Connecticut LLC Formation: Everything You Need to Know
Connecticut LLC formation requires a number of steps in order to launch a successful business.3 min read
2. Forming a Connecticut LLC: Naming the LLC
3. Forming a Connecticut LLC: File the Articles of Organization
4. Forming a Connecticut LLC: Create the Operating Agreement
5. How to Maintain Your Connecticut LLC
Connecticut LLC formation requires a number of steps in order to launch a successful business. If you have decided on this business structure and plan to operate out of Connecticut, you must do the following:
- Choose a unique name that meets state requirements.
- Select a registered agent.
- File Articles of Organization with the Secretary of State.
- Pay the associated fees.
Forming a Connecticut LLC
Limited liability companies, or LLCs, are easy and affordable to form. Like other states, Connecticut has some special requirements. Before you form this type of business, it is important to understand what this business structure entails and whether it is a viable option for your business.
If interested in LLC formation, you must first register with the Secretary of State, pay all necessary fees, and meet all requirements in relation to formation and naming.
First of all, know that a limited liability company is a type of business structure known for flexible organization and taxation. Owners or "members" also enjoy limited liability. One of the key benefits associated with LLCs is that unlike corporations, there is no maximum on the number of members allowed. Being a "hybrid" structure, LLCs incorporate aspects of a corporation and a limited liability partnership.
Basic requirements for Connecticut LLC formation include the following naming criteria:
- The name of your LLC must include "limited liability company," "LLC," or another variation.
- Your name must be unique and should not be confused with any other registered name.
Additionally, your articles of formation must include the following information:
- The purpose of formation. Why will you be conducting business in Connecticut?
- How many members or managers your LLC will include and whether or not the LLC is run by members or managers.
- The full address of the LLC. This needs to be a physical address. However, a PO box is also acceptable.
- The name and address of your Connecticut registered agent. The appointed registered agent will also need to sign the articles of formation.
Forming a Connecticut LLC: Naming the LLC
Being the first and most important step, the name of your LLC will represent what you have to offer. To select a name, follow Connecticut guidelines and make sure that it is distinguishable.
Please note that certain words are restricted for use, including "bank" and "attorney." In order to use these types of words, additional paperwork is required, and licensed individuals may need to be a part of your LLC — for example, a doctor or a lawyer. You must also avoid using any words that could be confused with government agencies.
To begin, conduct a name search on the State of Connecticut website. If you would like to reserve a name, you can do so for up to 120 days. You will need to file an application and pay a fee of $60.
Forming a Connecticut LLC: File the Articles of Organization
In order to form your LLC, you will need to file Articles of Organization with the state. This can be completed in-person or by mail. There is a non-refundable fee of $120 to file, payable to the Secretary of State. Processing can take up to six weeks depending on the volume of submissions. If you would like this service expedited, your submission can be processed within 24 hours for just $50.
Forming a Connecticut LLC: Create the Operating Agreement
Although an LLC operating agreement is not necessary in the state of Connecticut, if you have more than one member, this step is highly recommended. This agreement is essentially a legal document that outlines ownership and operating procedures. This agreement will contain the following:
- The terms of each member
- The roles of each member
- Voting rights
- Management of the LLC
- How member will be admitted or removed
- The possible dissolution of the LLC
Connecticut does recognize this agreement as a governing document. If your agreement is complex or there are multiple members involved, legal counsel is recommended.
How to Maintain Your Connecticut LLC
Once formed, you will need to maintain your LLC to remain in good standing. This will require you to file an annual report, which is due each year at the end of the month in which your LLC was originally formed. The fee to do so is $20.
Stay up-to-date with your taxes, including a biennial tax of $250. Late filing will result in a penalty interest and/or a set fine. For more information, contact the Department of Revenue Services.
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