Economic experts believe that company incorporation in Connecticut is a profitable proposition and this is not just based on the fact that the state has seen rapid economic growth in recent times. In fact, the current-dollar GDP of Connecticut in 2017 was $260.8 billion. The industries that have been the primary drivers of the state’s economy include insurance, finance, rental, and leasing, and real estate. There are several advantages of starting a business in Connecticut and some of them include business incentives, proximity to vendors and customers, strong infrastructure, and transportation.
Why Choose Connecticut for Incorporation?
Connecticut is home to some of the top LLCs and Corporations in the US with 19 companies that are featured on the Fortune 500 list. Some of the biggest names that have set up company in Connecticut include Apple, General Electric, Walmart, Cigna and Aetna, Exxon Mobil, United Technologies (UTC), Hartford Financial Services Group, and Xerox among others. Why are so many businesses situated in Connecticut? This is because it is advantageous for businesses to operate from this state. Let’s take a quick look at what the state offers new businesses:
Small Business Express Program (EXP)
The primary aim of this program is to provide grants and loans to small businesses based out of Connecticut so that it can lead to a rise in business, economic growth and job creation. The program has been implemented by the Department of Economic and Community Development (DECD). As a part of this program, the grant/job ratio varies from $5,000 to $10,000 for each full-time W-2 job being created. If you set up a company in Connecticut, you can access the program by submitting the “Small Business Express Program application” form.
Tax Credit Programs
There are different types of tax credit programs for businesses post company incorporation in Connecticut. These programs have been made available by the state of Connecticut as well as local cities, counties and towns. The aim of these tax incentives is to encourage business investment. Some of the popular tax incentives in Connecticut include:
- Urban and Industrial Site Reinvestment Tax Credit
- Job Expansion Tax Credit (JET)
- Fixed Capital Tax Credit
- Financial Services Tax Credit
- Machinery and Equipment Tax Credit
- Manufacturing Reinvestment Account (MRA) Program
- Enterprise Zone Tax Credit
How do you incorporate in Connecticut?
How do you set up a company in Connecticut? What are the procedures? What forms and documentation are you required to submit and to whom? These are some of the most common questions that you will be confronted with if you are new to the state. It is definitely not a difficult process but there are a few steps that need to be undertaken in order to conduct business in the state. Below are the steps:
Incorporation in Connecticut begins with choosing the type of business structure you want to set up. There are several types of business entities to choose from, including Limited Liability Company, Corporation, Partnership, Sole Proprietorship, and Limited Partnership. Each type of corporation has its own advantages and disadvantages and the forms and fees are different also. Business corporations can be classified under domestic and foreign. You can also form Stock Corporation and Non-Stock Corporations.
Business Entity Name
If you are planning to set up a company in Connecticut then the next step is to identify, search, reserve or register the business entity name. There are 3 steps towards business name formation and these are:
- According to Chapter-601, Sec. 33-655, of Connecticut Business Corporation Act, the name of a corporation should contain the words “corporation”, “incorporated”, or abbreviations like “corp.”, “inc.” etc.
- According to Chapter-601, Sec. 33-656, of Connecticut Business Corporation Act, in order to initiate incorporation in Connecticut, you can reserve the corporate name for a period of 120 days by filing an application with the Secretary of the State.
- According to Chapter-601, Sec. 33-657, foreign corporations can register their corporate name by filing the registration application with the Secretary of the State.
Choose a Registered Agent
An LLC or Corporation wanting to set up a company in Connecticut has to designate as well as maintain a registered agent in this state pursuant to Chapter 613a, Sec. 34-243n of the Uniform Limited Liability Company Act and Chapter 601, Sec. 33-660 of the Business Corporations Act. The role of a registered agent in Connecticut is to receive service of process, important state communications, and legal documents, on behalf of the business entity.
We are one of the respected registered agents in Connecticut and will be responsible for initiating incorporation in Connecticut through processing of your “Certificate of Incorporation” for domestic corporations and “Certificate of Authority” for foreign corporations.
Certificate of Incorporation and Certificate of Authority
You will be required to submit a “Certificate of Incorporation” if your business is a domestic corporation and a “Certificate of Authority” if it is a foreign business entity. In order to streamline the process of incorporation in Connecticut, we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Connecticut, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Connecticut Incorporation
What would it cost to set up a company in Connecticut?