Forming an Connecticut LLC
(2025 Guide)
2025 LLC Guide
How to Start an LLC in Connecticut 2025 Step-by-Step Guide
Discover how to start an LLC in Connecticut, our step-by-step guide. Learn the essential requirements and process to form your business today.
To establish an LLC in Connecticut, you need to submit a Certificate of Organization to the Connecticut Secretary of State. The filing fee is $120, and processing typically takes around 3 days.
Here are the 5 steps to create an LLC:
1. Choose an LLC Name
2. Select a Registered Agent
3. File a Certificate of Organization
4. Create an Operating Agreement
5. Obtain an EIN
If you prefer to set up your LLC on your own, follow our complimentary guide below.
For those who would rather have assistance, we suggest hiring Northwest Registered Agent.
What is the cost to establish an LLC in Connecticut?
Starting an LLC in Connecticut requires a payment of $120. After that, an annual fee of $80 is necessary. What do these fees cover? The initial $120 is for filing the Certificate of Organization, which officially establishes the LLC. The $80 annual fee is for the Annual Report, a required submission to maintain your LLC’s good standing. For more details on LLC expenses, refer to LLC Costs in Connecticut.
How long does it take to form an LLC in Connecticut?
Filing by mail results in approval within 7-10 business days, with additional time for mail delivery. Filing online speeds up the process, with approval in just 2-3 business days. For any potential delays, please visit How long does it take to get an LLC in Connecticut.
Here are the steps to forming an LLC in Connecticut
1. Search Your LLC Name
Begin by searching your desired LLC name to ensure it’s available in the state. It’s essential because no two businesses in Connecticut can share the same name.
First, compare your chosen business name with existing businesses in the state. Use the Business Records Search to verify that your desired LLC name is unique.
Next, get acquainted with the state’s LLC naming guidelines to ensure your LLC name meets approval criteria. We’ll delve into both aspects further here: Connecticut LLC Name.
2. Select a Connecticut Registered Agent
The following step is selecting a Registered Agent. A Registered Agent in Connecticut is an individual or entity that receives legal documents and state notifications for your Limited Liability Company.
Who can serve as an LLC Registered Agent? You have three choices for a Registered Agent:
– Yourself
– A friend or family member
– A Registered Agent Service
The Registered Agent for your LLC needs to have a physical street address in Connecticut, as PO Boxes are not acceptable. The name and address of the Registered Agent will appear in public records.
If you lack a Connecticut address or prefer more privacy, you can opt for a Registered Agent Service for your LLC.
We suggest Northwest Registered Agent. One of the best features of Northwest is that they allow you to use their office address for all your LLC filings, helping you keep your address private. They will also scan any mail addressed to your LLC and upload it to your online account. Northwest is known for its outstanding customer service, and we trust them to serve as our Registered Agent.
3. Submit an LLC Certificate of Organization
To establish an LLC, you must submit the Connecticut Certificate of Organization. This involves a one-time fee for forming your LLC. This document is filed with the Connecticut Secretary of State.
The cost to file the Connecticut Certificate of Organization online is $120. If you prefer to handle this yourself, refer to our detailed guide: Connecticut Certificate of Organization. Alternatively, you can hire a company to manage it for you.
4. Draft an LLC Operating Agreement
An Operating Agreement acts as a “companion” to the Certificate of Organization. While the Certificate establishes your LLC, the Operating Agreement identifies the owners.
Many banks might ask for an Operating Agreement to open an LLC bank account. Additionally, it can be crucial in court to demonstrate proper management of your LLC. Therefore, we advise all LLCs to have an Operating Agreement, even Single-Member LLCs.
Moreover, an Operating Agreement is considered an “internal document.” This means you don’t need to file it with the state or the IRS (Internal Revenue Service). Simply maintain a copy with your business records. You can download a free template below. Then, watch our step-by-step Connecticut Operating Agreement video to learn how to complete it.
5. Obtain an EIN for Your LLC
The subsequent step involves acquiring a Connecticut EIN Number from the IRS for your LLC.
Note: An EIN Number is often referred to as a Federal Tax ID Number or Federal Employer Identification Number.
An EIN Number is necessary for:
– Identifying your LLC for tax purposes
– Opening a business bank account
– Applying for business licenses and permits
How much does an EIN cost?
Obtaining an EIN Number from the IRS is entirely free of charge.
How long does it take to get an EIN?
Applying online takes about 15 minutes. If you apply by mail or fax, it might take 1-3 months.
How can I get an EIN?
US Citizens/US Residents: If you possess an SSN or ITIN, you can apply online. Follow these steps: Apply for an EIN online.
Non-US Residents: Online application isn’t available, but you can apply via fax or mail. Follow these steps: How to get an EIN without an SSN or ITIN.
What should I do after my LLC is approved?
After approval, follow these steps:
Open a business bank account for your LLC.
This simplifies accounting and record-keeping for your business finances. A separate account helps maintain your personal liability protection by keeping your personal and business finances distinct.
Obtain necessary Connecticut business licenses and permits.
While Connecticut doesn’t require a state general business license, you must register with the Department of Revenue and acquire a Connecticut State Tax Identification Number. This number is essential for conducting business in Connecticut and differs from your LLC’s federal EIN. Depending on your LLC’s location, you might also need a local business license or permit. For example, launching a daycare may require a city or county license. More details are available on our Connecticut Business License page.
Submit an LLC Annual Report.
Every Connecticut LLC must file an Annual Report each year to remain in good standing. The filing fee for the Annual Report is $80 annually. Reports are due by March 31st each year, with your first report due the year following your LLC’s approval. For instance, if your LLC was approved on February 15, 2025, the first report is due by March 31, 2026. Reports can be filed online or by mail, with online filing recommended for simplicity. Follow our guide here: Connecticut LLC Annual Report.
Handle taxes for your LLC.
LLCs themselves don’t pay federal taxes; instead, the LLC Members pay taxes as part of their personal tax return. An LLC is taxed by the IRS according to its number of owners: a Single-Member LLC is taxed like a Sole Proprietorship, while a Multi-Member LLC is taxed like a Partnership. Alternatively, you can request the IRS to tax your LLC as a C-Corporation or S-Corporation. Additionally, there are state and local income taxes and sales tax. Learn more in Connecticut LLC Taxes.
Helpful Resources
How to Start an LLC in Connecticut FAQs
Can I start an LLC online in Connecticut?
Yes, you can establish an LLC online in Connecticut. The filing fee for the Certificate of Organization is $120. Once submitted online, your LLC will likely be approved within 2-3 business days.
What are the benefits of an LLC?
One of the primary benefits of an LLC is the protection of personal assets. This means that if your business faces a lawsuit, your personal assets, such as your home, vehicles, and bank accounts, are safeguarded. This protection is available to all LLC members, regardless of whether you have a Single-Member or Multi-Member LLC. This kind of protection is unavailable for Sole Proprietorships or Partnerships, where owners are vulnerable in lawsuits. Therefore, Limited Liability Companies (LLCs) are a preferred business structure.
Another advantage is pass-through taxation for LLCs. The LLC itself does not pay federal income taxes. Instead, profits pass through to the LLC members, who then pay taxes on their personal tax returns. State income taxes follow the same principle, honoring the federal tax treatment of your LLC. For more details, refer to How are LLCs taxed.
Is Connecticut a good state to start an LLC?
Whether Connecticut is a suitable state to start your LLC depends on your residence and business location. If you reside or operate in Connecticut, it’s advisable to form your LLC there. Despite discussions about tax rates and benefits in different states, these do not matter if you do not live or operate there. For instance, forming an LLC in Delaware while living and doing business in Connecticut requires you to register your Delaware LLC in Connecticut, incurring additional fees and obligations to pay Connecticut taxes. This results in more costs and complications with no real benefits. In summary, if you reside and operate in Connecticut, it is a good state to start a business. Otherwise, it is not ideal.
Real estate exception: If you are purchasing property outside Connecticut, form your LLC in the state where the property is located. For more details, see Best State to Form an LLC.
What is a PLLC?
A Professional Limited Liability Company (PLLC) is an LLC formed for providing “professional services.” Here, “professional” refers to business types requiring special permissions, like a license or certification from the state, to operate legally. Professions such as architects, attorneys, social work counselors, doctors, and veterinarians must register as PLLCs. For more on PLLCs, their availability, and stricter requirements, see: What’s a Professional LLC? For additional information on Foreign and Domestic LLCs, please see: Foreign LLCs by State Difference between Domestic LLCs and Foreign LLCs.
What is the difference between a Domestic LLC, a Foreign LLC, and a PLLC?
The differences among Domestic LLCs, Foreign LLCs, and Professional LLCs (PLLCs) lie in their formation locations and business purposes. A Domestic LLC is formed in its “home state,” meaning where the owner lives and conducts business. For example, if you reside and operate in Georgia, you would form your Domestic LLC there.
A Foreign LLC is established in a state different from its home state. Here, “foreign” means the LLC is foreign to its home state. For example, if you reside and operate in Georgia, you form your Domestic LLC in Georgia and later expand into Florida, you would register your Georgia LLC as a Foreign LLC in Florida. LLCs are state-level entities, and to operate in multiple states, you must form or register an LLC in each state. This involves forming a Domestic LLC in your home state and a Foreign LLC in another state.
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