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5 steps to forming an LLC in Connecticut

When you are starting a business, you may want to form an LLC because of the many benefits that come with this business structure. Some advantages of operating an LLC include tax efficiency, legal protection for members and flexible organization.

An LLC is essentially the best of both worlds of a corporation and limited partnership. But even though you want to start an LLC, you may not know how. Here are the general steps to forming an LLC in Connecticut.

1. Pick a name

The name of your business must end in one of the following ways:

  • Limited Liability Company
  • LLC
  • L.L.C.
  • Ltd. Co.

Choose a name that is distinct from other business names in Connecticut.

2. Designate a registered agent

Your Connecticut LLC needs a registered agent whose responsibility is to handle legal papers on behalf of the LLC. The agent can be a resident of Connecticut, a Connecticut business or another business entity that has the authority to conduct business in Connecticut.

3. Create and submit Articles of Organization

You officially form an LLC by filing Articles of Organization. This document should include the following details:

  • Business name and address
  • Nature of the business
  • Contact information of the registered agent
  • Contact information for managers/members
  • Statement regarding how you will run the LLC

You can file the articles via mail or online.

4. Obtain an EIN

If you have a multi-member LLC, you need to get a tax ID number for it from the IRS. A single-member LLC only needs an EIN if it will have employees or is going to be taxed as a corporation. You can apply for an EIN online with the IRS. 

5. Create an operating agreement

While the law does not require you to create an operating agreement for your LLC, it is a smart thing to do. This agreement governs the LLC and will help avoid and resolve any disputes among members.  

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