LLC in CT: Everything You Need to Know
In Connecticut, a limited liability company is the least complex of all the business structures. 3 min read
What Is an LLC in CT?
In Connecticut, a limited liability company is the least complex of all the business structures. LLCs have a flexible structure, unlike C corporations and S corporations. Business owners who start LLCs enjoy a number of perks, such as limited liability, legal protection for personal assets, and pass-through taxes.
Steps in Forming an LLC
The steps that make up the process of forming an LLC are as follows:
- Selecting a name for an LLC
- Selecting a statutory agent
- Filing "Articles of Organization"
- Creating an operating agreement
- Getting an Employer ID Number (EIN)
- Setting up an organizational meeting
Guidelines in Choosing a Name for Your LLC
The ideal name for an LLC is suitable to the nature of the business venture and is easy to search by potential customers. In Kansas, the name of an LLC needs to include the abbreviations LLC or L.L.C. or the words "Limited Liability Company." There are restricted words that you can only include in the name of your LLC after gaining approval. "Attorney" and "bank" are a few examples of such words. An individual with a license relevant to the restricted word may need to join the LLC.
In general, words that are used for federal and state agencies are prohibited. "Treasury" and "Secret Service" are a few examples of such prohibited words. The state of Kansas doesn't want people to confuse your LLC with government agencies.
You can refer to the State of Connecticut website to make sure that a name you're vying for isn't already taken. The name you choose for your LLC must not be similar to the name of any other business entity recorded in the business name database of the Connecticut Secretary of State. Since an LLC is considered a unique entity under the law, you need to choose a legal name for purposes of identification. The purpose of this rule is to help avoid confusion.
Before officially choosing a name for your LLC, you should keep email addresses and domain names in mind. Check to see if a good domain name for your LLC's name is available. Buy a domain name to reserve it even if you don't intend to make a website immediately. You should also set up a professional email for your company with Google Apps.
In the name for your LLC, you can abbreviate "Limited" to "Ltd." and "Company" to "Co."
You can reserve an available name for your LLC for 120 days. You need to file an Application for Reservation of Name along with a filing fee of $60 with the Connecticut Secretary of State. The reservation form needs to be filed by postal mail.
The application for the name reservation needs to include the applicant's address, name, signature, and title, the execution date, the filing party's address and name, and the name chosen to be reserved.
What is a Statutory Agent?
A statutory agent, also referred to as a registered agent, is any individual or company that agrees to deal with legal papers for your LLC. These legal papers include service of process of legal action for lawsuit cases and state filings.
The statutory agent needs to be a full-time resident of Connecticut. You can serve as the statutory agent or you can elect a manager or member of the LLC to be the statutory agent. Business entities in Connecticut and foreign business entities authorized to conduct business in the state of Connecticut can also serve as registered agents.
All Connecticut LLCs need to have a statutory agent. The individual or business needs to agree to accept their role as the statutory agent for your limited liability company. The individual or business you select needs to sign the Articles of Organization before you file to register your LLC. The statutory agent needs to be available during normal business hours to get vital tax and legal notifications for your LLC.
What Are Articles of Organization?
You need to file the Articles of Organization in person or by email with the state of Connecticut to register your LLC. While filling out these documents, you will need to designate whether your LLC is manager managed or member managed. The filing fee for the Articles of Organization is $120.
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