How to start an LLC in Connecticut in 2024

According to data provided by the U.S. Small Business Administration, there are 360,127 small businesses in Connecticut, making up 99.4% of businesses in the state. If you want to join the ranks and start your own business in Connecticut, setting up a limited liability company, or LLC, can help you protect personal assets from business debts or lawsuits. 

In this guide, we walk you through the steps to start your Connecticut LLC, including the associated costs, required documentation and resources that can help you complete each step. 

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8 steps to start an LLC in Connecticut

1. Choose a business name

Ideally, your LLC’s name should reflect what your organization does. It must also be unique from other business names registered in the state. If the name you choose is the same as another Connecticut business’s name, then the Connecticut Secretary of State will reject it. To avoid a rejection, keep these guidelines in mind when choosing your business name: 

• The name must not be identical or similar to another business name in the state, such that your business can be confused for an already-existing one. 
• The name has to end with words that denote the legal structure of the business — in this case, variations such as “LLC”, “limited liability company” or “limited company.”
• Most states will not allow you to include terms that imply your LLC is a government entity, such as “treasury” or “FBI.” 
• Unless you have the documentation to prove you have the relevant and necessary licenses or permits, you cannot use words that imply you offer products or services that require a license or permit, such as “veterinarian” or “home health care.”

To see if the name you want is already being used, use Connecticut’s business records search tool. You should also conduct a trademark search with the United States Patent and Trademark Office to make sure the name isn’t already trademarked on a national level and protected from infringement. If your chosen name appears in either of these databases, you must choose another one. 

Your name is automatically reserved for your business when you file your articles or organization with the state. However, if you are not yet prepared to file this paperwork, it is a good idea to reserve your chosen name to ensure it is not taken by another business in the meantime. Connecticut allows you to reserve a business name for up to 120 days. 

To reserve your name, fill out form BUS-002, or “application for reservation of name.” To cover the filing fee, you must include a check or money order payable to the “Secretary of State” for $60. Mail your form and check to the address printed at the bottom of the application form. 

2. Appoint a registered agent

Connecticut’s Secretary of the State requires LLCs in the state to appoint and maintain a registered agent at all times. A registered agent (whether an individual or entity) is responsible for receiving official documentation from the state such as service of process notices. The business owner can be its own registered agent, or they can appoint someone willing to represent the company (like an employee) or a Connecticut-based company offering registered agent services. The registered agent must give their permission in writing when you file your LLC formation paperwork (see step four). 

To learn more about what a registered agent is, your registered agent requirements and how to choose one, read: What is a registered agent?

If you are interested in hiring a third-party registered agent, use our best registered agent services guide to help you find the best provider for your needs. 

3. Create a business.ct.gov account

A business.ct.gov account is useful and often required for submitting core LLC formation paperwork, such as your certificate of organization (to officially form your LLC) and your annual report (to keep your LLC in good standing with the state). It is free to sign up for this account. 

To create an account, visit business.ct.gov and click the “sign in” link. Then, click “sign up now.” Provide the following information: 

• Your name.
• Your email address.
• Your language preference.
• Your mobile phone number (optional). 
• A username. 
• A secure password. 

Confirm your email address and your password as prompted and click “sign up for a business.ct.gov account.” Once you’ve completed the captcha challenge, review your information for accuracy and click “submit.” A verification code will be sent to your email address or phone. Follow the instructions within the email or text to complete the sign-up process.

Now you can log into your account as needed to complete future business formation steps. 

4. File your Connecticut certificate of organization

To officially register your company as an LLC in Connecticut, you will need to file a certificate of organization with the state, along with a $120 filing fee. To file this form online, log into your business.ct.gov account. 

To fill out this form, you will be asked for the following information:

• Your name and contact information (as the filer). 
• Your LLC’s name.
• Your business’ physical and mailing address. 
• Your business’s email address.
• Your registered agent’s name and address. 
• The names, business addresses and resident addresses of your LLC members or managers.
• Your LLC’s NAICS code. You can search for this code by your LLC’s industry using the NAICS search tool.
• Your name and signature (as the filer).

You will need your registered agent to sign the form as proof they consent to act as your agent. If you’re filing the form online, you will need to provide the registered agent’s email address. Then, the Connecticut Secretary of State will email your agent to confirm consent to the role and responsibilities by requesting your agent’s name and signature. 

Once filed and accepted, you can request a copy of the certificate of organization for your records by logging into your business.ct.gov account. 

New LLC reporting requirement alert 

The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) has implemented a new reporting requirement for all non-exempt LLCs starting on January 1, 2024. 

The requirement is called the Beneficial Ownership Information (BOI) report and it is estimated to only take about 20 minutes to complete. 

Here’s what you need to know:

• LLCs formed before January 1, 2024 have until January 1, 2025 to file.
• LLCs formed between January 1, 2024 and January 1, 2025 have 90 days to file from the confirmed date of the businesses’ registration.
• New LLCs formed after January 1, 2025 will have 30 days to file from the confirmed date of formation.

For all details, FAQs and to file, visit FinCEN’s BOI website. 

5. Apply for an employer identification number (EIN)

Once you’ve officially registered your LLC, you can focus on applying for documentation for operating your business. An EIN, or employer identification number, is used for tax purposes to identify your LLC, similar to how a Social Security number works. You can use your EIN to file taxes, open a business bank account, hire employees and apply for the necessary business licenses and permits you need to open and operate your LLC.

You can apply for an EIN for free online through the IRS website. The application can only be completed between Monday and Friday, 7 a.m. to 10 p.m. Eastern Standard Time. You must also complete the application in one session. The whole process usually takes between ten and fifteen minutes. 

You will be asked to provide the following information to fill out the EIN application:

• Your name and Social Security number. 
• Your LLC’s name and address. 
• The name and Social Security number of a responsible party within the LLC (someone who controls the LLC’s assets and finances).
• Your business’ structure (in this case, a limited liability company). 
• The reason you’re applying (in this case, “started a new business”). 
• Your LLC’s formation date. 
• The closing month of your accounting year. 
• The number of employees you expect to have in the next 12 months and when their wages were first paid.
• Your LLC’s principal activity (for example, construction, real estate, manufacturing or health care and social assistance).
• Your signature and phone number.

Once you have submitted the form, you will receive a downloadable confirmation page with your new EIN. Print this page and keep it with your other important LLC documents, such as your operating agreement. 

6. Create an operating agreement

An operating is a legally-binding document that outlines how your LLC will operate. Generally, all LLC members come together to draft the document, then all members sign it as a demonstration of their commitment to its contents. The document serves the following purposes: 

• Limited liability protection: Certain concepts within an operating agreement, such as a confirmation of the LLC’s limited liability structure and the ownership percentages of each member, solidifies the limited liability protection around members’ personal assets and where their business obligations begin and end.
• Dispute prevention and resolution guidance: By setting a clear foundation around operating procedures and members’ rights and responsibilities, you set your LLC up to avoid confusion and so member disputes down the line. And, if a member dispute arises, you can turn to your operating agreement for guidance on how to resolve it and clarity around the disputed concepts.
• Enhanced operational control: LLCs that do not create and sign an operating agreement must default to state rules regarding LLC operational practices and procedures. An operating agreement overrides those rules to implement ones that are in the best interest of your LLC and its members. 
• Foresight: As you come together with your members to draft your agreement, you put best practices into writing and agree to adhere to them, helping to set your LLC up for success from its first day of operation. 

As you come together to draft your operating agreement, remember that it should include: 

• Your LLC’s name, address and structure (in this case, an LLC). 
• Your LLC’s purpose. 
• Members’ names and contact information. 
• Members’ ownership percentages. 
• Members’ rights, responsibilities and powers within the LLC.
• Members’ initial contributions. 
• How profits and losses are distributed. 
• A non-compete clause. 
• How your LLC can be dissolved. 
• How new members can be inducted. 
• The rules surrounding members’ buy-out or sell-out options. 
• A plan for transfer of ownership in the event a member passes away. 
• Your accounting procedures (cash or accrual basis, for example).
• How and when member meetings will be held. 

You can easily put together a first draft by using a template offered by many LLC formation companies, such as Rocket Lawyer and Northwest Registered Agent. Rocket Lawyer will even ask you questions and fill out the template for you, then offer digital signature capabilities for your members. 

However, as a legally-binding document that is meant to serve the unique interests of your LLC, we strongly recommend that these templates only be used as a starting point. In addition, consult with a business lawyer to align your document to your LLC’s needs and finalize your document before your members sign it. Many LLC formation companies, including Rocket Lawyer and LegalZoom, offer such legal services for a fee. 

7. Obtain business licenses and permits (as necessary)

Determine whether your business needs additional licenses and permits to operate in Connecticut by researching the relevant licenses and permits available to you. 

To do so, visit the Connecticut State Department of Consumer Protection’s license, permit and registration forms page to view a list of licenses and permits required by industry and their applications. When you click on an industry, you will be taken to a page that explains the required license or permit for that industry, the prerequisites to apply, the required documentation and who should apply. 

For example, when we clicked on “architecture,” we were taken to a page that lists the training and educational requirements to operate as an architect in Connecticut, the documents you will need to apply for an architect’s license and links to the licensing applications. Within the application, filing fee details were provided. 

Industries and professionals that may need licenses or permits to operate include (but are not limited to): 

• Accountants.
• Renovators. 
• Importers. 
• Suppliers.
• Manufacturers. 
• Pharmaceutical companies. 
• Electricians. 
• Food and non-alcoholic beverage companies. 
• Gas companies. 
• Healthcare or medical companies. 
• Inspectors. 
• Locksmiths. 
• Companies involved with alcohol or tobacco products. 
• Building or construction companies. 
• Engineers. 
• Real estate companies. 
• Solar energy companies. 
• Communications companies. 

8. File an annual report

The laws in Connecticut require that all businesses, including LLCs, file an annual report. This documentation contains pertinent information about your LLC and is your chance to ensure company details are up to date. The annual report is due between January 1 and March 31 of the year following your LLC’s formation. If you do not file on time, you risk your entity being administratively dissolved. 

You can find out when your annual report is due by searching for your business records online on Connecticut Secretary of State’s website. The state will also send you a reminder — either by email or postcard — about a month before your annual report is due. 

You must file online unless you request a file-by-mail waiver. To file online, you must go to the Connecticut file annual report page and click the “file annual report” button. Sign into your business.ct.gov account as prompted. Once you’ve logged in, click “file annual reports.” Confirm or update the following information: 

• Your LLC’s name. 
• Your LLC’s Connecticut business ID number. You can find this number by searching the Connecticut business database for your business.
• Your LLC’s mailing and street address. 
• Your LLC’s North American Industry Classification System (NAICS) code. You can search for this code by your LLC’s industry using the NAICS search tool. 
• The name of a responsible member, officer or director in your LLC and their address. 
• The name and address of your LLC’s registered agent. 
• The electronic signature of your registered agent. 
• Your signature, email and title (as the filer). 
• Credit or debit card information to pay the filing fee. 

When submitting your annual report online, you must pay a $80 filing fee. 

Featured LLC service offers

ZenBusiness

Learn More

Via ZenBusiness’ website

Free version available

Yes

Lowest published package price

$199

Live chat

Yes: Human

LegalZoom

Learn More

Via LegalZoom’s website

Free version available

Yes

Lowest published package price

$249

Live chat

Yes

Northwest Registered Agent

Learn More

Via Northwest’s website

Free version available

No

Lowest published package price

$39

Live chat

Yes

Find the best LLC services for Connecticut: Best LLC services of 2024