Forming a Connecticut LLC is a great step for protecting personal assets and organizing your business. Here’s how to do it:
1. Name Your Connecticut LLC
Choose a unique name that meets Connecticut’s requirements. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.” It should not be confusable with other business names on record. Use the Connecticut Secretary of State’s business registry search to check availability. You can reserve a name for 120 days for $60, but it’s typically not necessary if you’re ready to file.
2. Appoint a Registered Agent
Connecticut requires an LLC to have a registered agent with a physical address in the state. This agent will receive legal documents (like service of process) on behalf of the LLC. The agent can be an individual (yourself, an associate) or a service company. If an individual, they must be a Connecticut resident. If using a service, make sure they’re authorized to operate in CT. The registered agent info will be part of your Articles of Organization.
3. File the Certificate of Organization
Connecticut calls the formation document the Certificate of Organization. File this with the Connecticut Secretary of State (specifically, the Business Services Division). The filing fee is $120 (which can be done online for quick processing). The Certificate will ask for:
- LLC name,
- Principal office address,
- Registered agent name and address,
- Member or Manager-managed declaration,
- Name and address of at least one member or manager (Connecticut requires listing at least one person in the filing),
- Organizer’s information (person filing). Once filed and accepted (usually processed within a few days online), your LLC is officially formed.
4. Draft an Operating Agreement
Connecticut doesn’t require filing an operating agreement, but state law recognizes them and it’s highly advisable to have one. This internal document will spell out ownership percentages, how decisions are made, how meetings are conducted, and procedures for changes in membership. For multi-member LLCs, it’s a must to prevent disputes. Even single-member LLCs should have one for clarity and to reinforce liability protection.
5. Get an EIN from the IRS
Obtain an Employer Identification Number (EIN) for your LLC from the IRS. This is free and can be done online. Any multi-member LLC needs one for tax filing. Single-member LLCs need one if you have employees or plan to elect S-corp taxation, or simply to open bank accounts and sign up for services without using your SSN. The EIN is used for federal and (if applicable) state tax purposes.
6. Open a Business Bank Account
Use your EIN and approved Certificate of Organization to open a bank account for your LLC. Keeping business funds separate from personal funds is essential for liability protection and clean accounting. Connecticut has many banking options; choose one that offers low fees and convenient access for you.
7. Connecticut Tax Registration and Compliance
Determine if you need to register with the Connecticut Department of Revenue Services (DRS). If your LLC will sell goods or taxable services, register for the Sales and Use Tax Permit (which has a $100 fee and needs to be renewed every 5 years). If you have employees, register for withholding tax and unemployment insurance with the DRS and Department of Labor, respectively. Also note: Connecticut imposes an entity-level tax called the Pass-Through Entity Tax (PET), but it’s coupled with a corresponding personal income tax credit for members (essentially it’s a workaround for SALT deduction limits and mostly affects higher-earning businesses; consult a CPA to see how this will apply to your LLC).
8. Obtain Any Needed Business Licenses
Connecticut doesn’t have a general state business license, but certain professions and activities are licensed (e.g., if you’re a contractor, or running a daycare, etc., there are state boards or agencies to license you). Check with local city/town offices for local permits or zoning requirements, especially if you operate from home or are opening a storefront.
9. File Annual Reports
Connecticut LLCs must file an Annual Report every year. The filing fee is $80 (as of 2025) and the report is due by the end of the anniversary month of your LLC’s formation (for example, if you formed in June, your report is due by June 30 each subsequent year). The annual report is filed online via the Secretary of State’s CONCORD system and updates any changes in addresses, members/managers, etc. Mark your calendar to avoid late penalties or administrative dissolution.
Tip: Using a formation service like Registered Agents Inc. can simplify starting your Connecticut LLC. They will handle the Certificate of Organization and can serve as your registered agent, and even remind you about annual reports. Launch your Connecticut LLC with Registered Agents Inc. to save time and ensure compliance from day one.
Final Thoughts
Forming an LLC in Connecticut provides your business personal liability protection and a flexible structure. While the state has a few ongoing requirements (annual reports, and PET tax filings if applicable), the overall process is manageable. Once your LLC is set up and you’ve taken care of tax registrations, you can focus on growing your business in the Constitution State. Take that first step today by filing your Certificate of Organization, and you’ll be well on your way to operating under your new Connecticut LLC.
