Form a Connecticut LLC
Let LawInc.com set up your Connecticut LLC, the right way. We keep things simple and allow you to easily form your Connecticut Limited Liability Company online or over the phone (800-989-5294).
Connecticut LLC formation is made easy with LawInc.com. Once you complete your application, we check name availability, prepare your Articles of Organization and file your paperwork with the Connecticut Secretary of State. Once your Connecticut LLC registration process is completed, we send you your final paperwork.
A Connecticut LLC helps shield your personal assets, such as your house, automobile or family savings. In the event of a lawsuit or if your business should fail, your personal assets cannot be touched, assuming you have properly formed, capitalized and maintained your LLC. This limited liability feature of a Connecticut LLCs is not available in a sole proprietorship or general partnership, where the business owners are personally liable for all business debts.
Allow LawInc walk you through the Connecticut Limited Liability Company formation process. Our clear, concise and easy to use website, helps keep things simple.
Connecticut LLC Name
Connecticut LLC Name Registration: The first step in forming a Connecticut Limited Liability Company (LLC) is selecting the business name. Connecticut LLC names:
- Must contain with “Limited Liability Company,” “Ltd. Liability Co.,“ LLC,” “L.L.C,” “LC” or “L.C.”
- Must be distinguishable from the name of any domestic or foreign LLC, corporation, non-profit corporation, limited partnership, limited liability partnership on file with the Connecticut Secretary of State.
An available name may be reserved for a 120-day period.
LawInc.com permits you to choose up to three names and will conduct a name search for your Connecticut LLC, prior to filing.
Connecticut LLC Formation
Connecticut LLC Filing Procedure: When forming a Connecticut LLC, Connecticut Articles of Organization must be filed with the Connecticut Secretary of State. The statutory agent must execute his acceptance of appointment on the Articles of
Connecticut LLC Publication: Connecticut LLCs have no publication requirement.
Connecticut LLC Organizers: An Connecticut limited liability company can be formed by one (1) or more individuals, 18 years or older.
Connecticut LLC Record Keeping of Organizers: The organizer or organizers shall prepare a writing to be held with the records of the limited liability company, setting forth: (1) The name and residence address of each person who has become an initial member of the limited liability company; and (2) if the articles of organization provide that the management of the limited liability company is vested in a manager or managers, the name and residence address of each initial manager. In addition to the articles of organization, the organizer or organizers shall file with the Secretary of the State a writing containing the name and respective business and residence addresses of a manager or a member of the limited liability company, except that, if good cause is shown, the Secretary of the State may accept a business address in lieu of business and residence addresses of such manager or member. For purposes of this section, a showing of good cause shall include, but not be limited to, a showing that public disclosure of the residence address of the manager or member of the limited liability company may expose the personal security of such manager or member to significant risk.
Connecticut LLC Members: Connecticut LLCs require 1 or more members. There is no residence or age requirement. Connecticut LLC members are not required to be listed in the Articles of Organization.
Connecticut LLC Duration: The period of duration of a limited liability company shall be perpetual unless the Connecticut Articles of Organization place a limitation on the company’s existence or until dissolution or termination.
Connecticut LLC Purpose: The articles of organization must be set forth the nature of the business to be transacted or the purposes to be promoted or carried out. It is sufficient to state, either alone or with other business or purposes, that the purpose of the limited liability company is to engage in any lawful act or activity for which limited liability companies may be formed under the Connecticut Limited Liability Company Act, and by such statement all lawful acts and activities shall be within the purposes of the limited liability company, except for express limitations, if any.
Connecticut LLC Registered Agent: An Connecticut LLC must maintain a registered agent and office to receive service of process in Connecticut. The Connecticut registered agent should be available, at an Connecticut physical address, during normal business hours to accept important legal and tax documents on behalf of the Connecticut LLC.
Connecticut LLC Operating Agreement: After filing, it is highly advised that an operating agreement is drafted which dictates the LLC internal affairs and management. There is no set criteria, but an Connecticut LLC operating agreement should reference how the Connecticut LLC is managed, allocation of profits and losses and member capital contributions. The Connecticut LLC operating agreement does not need to be filed.
Connecticut LLC Post-Filing Requirements
Connecticut LLC Annual Report: The Connecticut Secretary of State requires that Connecticut LLCs file an annual report at the end of the anniversary month you that make your initial filing with the Secretary of State. The Connecticut Secretary of State does not assess a late fee but failure to file on time will lead to the LLC losing its good standing status. The annual report filing fee is $20. The Connecticut registered agent will receive a postcard reminder 3 months before the due date. For more information, visit: http://www.concord-sots.ct.gov/CONCORD/index.jsp
Connecticut LLC Taxes
Connecticut LLC Taxation: Connecticut LLCs are classified for Connecticut tax purposes based on their federal income tax classification. The LLC tax rate for Connecticut is variable, depending on Connecticut taxable net income.
Connecticut LLC Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:
- Sole proprietorship
- Partnership, or
Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on Connecticut LLC net income must be paid just as you would with any self-employment business.
Most Connecticut multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065. On this form, Connecticut LLC profits are reported and allocated to each of the owners according to the Connecticut LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return. It is important to note that as with sole proprietorships, all Connecticut LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses.
If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832. If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election. Additionally, an LLC can be taxed like an S corporation by filing IRS Form 2553.
Connecticut LLC Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service. An EIN is like a Social Security Number for a business. It is a requisite for certain business functions such as opening bank accounts or hiring employees. An EIN is typically required if the Connecticut LLC has more than one owner, or any employees.
Connecticut LLC Dissolution/Cancellation
Connecticut LLC Dissolution/Cancellation: In order to dissolve an Connecticut LLC, the members or managers must file Articles of Dissolution with the Connecticut Secretary of State.