Connecticut ranked 2nd for the Smartest State Award (Morgan Quitno Press, 2005)
Connecticut ranked 9th on the Top 10 Small Tech Hot Spots List (Small Times Magazine, 2004)
Connecticut ranked 10th on the State Technology & Science Index (Milken Institute, 2004)
Cost of Living Index
For Hartford, CT (2005):
Index Score
Composite:
120.9
Housing:
143.1
Utilities:
127.2
Misc. Goods & Services:
106.1
Crime Rate
Connecticut has the 12th lowest crime ranking among U.S. States. (FBI, 2004)
Fees & Taxes
Business Inventory Tax Connecticut does not tax business inventory.
Corporate Income Tax Rate: 7.5 %.
The tax is the greater of: (1) the applicable net income tax rate; (2) 3 1/10 mills per dollar of capital holding; or (3) the minimum tax of $250.
Personal Income Tax The first $20,000 is taxed at 3% and anything over $20,000 is taxed at 5%.
Personal Property Tax Taxable
State Sales and Use Tax Base Rate: 6 %
Machinery Rate: None
An exemption is given on sales, storage, use or consumption of machinery used directly in a manufacturing process.
Unemployment Insurance Connecticut’s new employers’ rate is 2.7% for 2 years.
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:
Business Type
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
Advantages of Incorporating a Business in Connecticut
Why should you register a new company in Connecticut? There is a reason why Connecticut is the proud home to 342,443 small businesses. The state has a positive business environment and this has been achieved through the implementation of several programs that provide short and long-term benefits to businesses. There are salient advantages of forming an LLC or Corporation in Connecticut and to add to that are state incentives, which are aimed at ensuring business growth and stability. Most of the incentive programs are being administered by the “Department of Economic and Community Development” (DECD).
Business Growth Incentive for New Businesses
As one of the top registered agents in the state, we can help you to register a new business in Connecticut as this will ensure you are able to leverage all types of business gains and state provided incentives and grants. Let’s take a quick look at why Connecticut is considered one of the best places for establishing a business:
Advantage#1: Salient benefits of Corporation or LLC formation
Corporation
Limited Liability: The shareholders in a Connecticut C Corporation will enjoy limited liability where the corporation’s debts are concerned.
Long life: When you register a new business in Connecticut as a Corporation, you will be able to raise additional funds by selling stock.
Connecticut public benefit corporation: You can also establish your business entity as a Connecticut public benefit corporation, which will enable long-term value creation. Such a corporation will also be able to benefit from several incentives laid out by the state.
LLC
Limited Liability: As an owner of a Connecticut LLC, you will be able to enjoy limited liability protection quite similar to what a corporation enjoys.
No Minutes of meetings: Unlike a corporation, an LLC startup company in Connecticut will not be required to maintain any minutes of the meetings or resolutions.
Flexible Profit Distribution: An LLC startup company in Connecticut has the benefit of being able to select different ways of distribution of profits
Flow through Taxation: When you register a new company in Connecticut as an LLC, it can benefit from the process of flow through taxation, which will ensure there are no double taxations.
Advantage#2: Benefits and Incentives
There are several benefits or incentive programs that you can benefit from if you register a new business in Connecticut. Some of these programs provide tax exemptions to businesses while others make grants and loans readily available to small businesses. Let’s take a quick look at some of the promising and popular benefits:
Enterprise Zone Program
This is a highly beneficial program for small businesses. Special zones known as “Enterprise Zones” have been designated by the Department of Economic and Community Development (DECD) across Connecticut. Some of the towns with enterprise zones include Bridgeport, Norwalk, Hartford, and Meriden among others. If a startup company in Connecticut is situated in one of these enterprise zones then they can benefit from a variety of tax incentives. If you locate your business in an enterprise zone, you can benefit from a 10-year corporate business tax credit and it will be 100% for the first three years and 70% for the next seven years. You will also be able to benefit from low-interest and flexible business loans.
Tax Exemptions
There are several forms of tax exemptions that you can benefit from once you register a new business in Connecticut. Some of the tax exemptions that small and medium sized businesses can benefit from include:
Corporate Business Tax Exemptions: This type of exemptions is aimed at domestic and foreign corporations.
Real & Personal Property Tax Exemptions: This type of exemption is aimed at businesses that acquire or install manufacturing machinery and equipment. You can get 100% tax exemption for a period of 5 years on newly installed manufacturing machinery and equipment.
Sales and Use Tax Exemption: A startup company in Connecticut can benefit from sales and use tax relief available on purchase of tangible personal property.
Apart from these, there are several tax credit programs as well as debt financing and investment capital programs, which businesses can benefit from.
Are there any Disadvantages of Incorporating in Connecticut?
When you register a new company in Connecticut, you can benefit from loans for creating business capital, locate your business in enterprise zones to get special benefits, and if you are a small business then there are plenty of tax incentives to leverage on. There are very few disadvantages and they are almost inconsequential as the benefits and incentives ensure long-term business growth.
A business entity can be registered through the Secretary of the State office in that state but before you do so, you need to ask, “do I require a business license in Connecticut?” Depending on the industry and location of your business entity, you will be required to apply for a business or professional license or permit. Generally, a license to conduct business is issued by the state and local government and this includes cities, counties, or even towns but some businesses may be required to obtain license from the federal government as well.
One of the important things to note is that Connecticut company license pertaining to a specific industry is issued or regulated by agencies related to that industry. Let’s look at an example to understand this better:
Insurance Company License (Domestic) – This type of business license allows domestic Connecticut insurance companies to operate in the state. The licensing agency is: Department of Insurance.
Commercial Fishing – This type of business license is required by tourism cruise vessels; commercial fishing vessels; and fishing vendors or vessels that aid in the import of live fish. The licensing agency is: Department of Energy & Environmental Protection.
Connecticut Business License Requirements
What are the requirements for obtaining a business license in Connecticut? Does your business entity require any special permits? Does your business require a single license or multiple licenses? These are some of the important questions that you might be confronted with and hence, we have created a guide that will help answer some of these questions.
The requirements of a Connecticut company license or permit can vary according to location and also according to the type of business. Since Connecticut has a single statewide sales and use tax, a business entity will be required to comply with business permit or license requirements of the Department of Revenue Services, CT. Some of the common business licensing requirements in Connecticut include:
State or County business license
Home occupation permit
Tax ID number (aka EIN or FEIN and State Tax Numbers)
Health department permit
Zoning permit or land use permit
Alarm permit
Building permit
Fire and police department permit
Getting a Business License
How do you get a state or county business license? The procedure can be confusing but the best way to go about obtaining a license is by identifying the type of business and your location. Let’s look at an example to get an insight into the process:
Industry Type: Food Services
You are planning to start a business in Connecticut and you have chosen to start a Restaurant that serves alcoholic beverages. What are the various requirements?
The “food services industry” in Connecticut include a variety of businesses like restaurants, cafes, delis, coffee houses, catering services, clubs, and even food trucks. If you have chosen the restaurant business then the first step is to contact the “local health department” in the city, county or town of operation to obtain a business license in Connecticut for food service.
The food license fee for a restaurant will vary according to the seating capacity of your establishment. For example: Business license & service fees for an establishment in Stamford, CT with seating capacity of a maximum of 15 people is $28.00 while the fee for an establishment with seating capacity of 200 people is $559.00. If you also offer catering services then you will have to pay an extra fee of $420.00.
If you plan to start a Bakery along with the restaurant then you will be required to obtain separate licenses for the same as the Connecticut Department of Consumer Protection requires the following types of business entities to obtain food licenses in the state:
Bakery
Apple Juice & Cider Manufacturer
Food Warehouse
Vending Machine Operator
Food Manufacturer
Egg Distributor
Non-Alcoholic Beverage Manufacturer
Frozen Desserts – Retail and Wholesale
Since, your restaurant would be serving liquor or alcoholic beverages in premises then such an entity would need to also obtain a “liquor license or permit”.
The liquor permit is a business license that will be issued by the State of Connecticut, Department of Consumer Protection, Liquor Control Division. The application fee for the same is $100.00. You can check a sample of the application here.
It is important to note that a single business depending on the industry and type of operation may require multiple business licenses or permits.
Connecticut LLC and Corporation Registration and Formation
Connecticut named after the Connecticut River, is also known as the “Constitution State” or the “Nutmeg State”. The current-dollar GDP of Connecticut was $260.8 billion in 2017 ranking it 23rd in the United States. Company formation in Connecticut has also increased over the last few years with 342,443 small businesses operating out of this state by the 3rd quarter of 2017. Today, 99.4% of all Connecticut businesses are small businesses and there are 735,788 employees working in the small business sector.
We are one of the top Connecticut registered agents and are familiar with all processes pertaining to the Connecticut State and can provide information and assistance for a successful setup of your business!
Let’s take a look at how you can form a Connecticut business LLC or Corporation.
Connecticut LLC Registration and Formation
LLC company formation in Connecticut is governed by Chapter 613a of the Uniform Limited Liability Company Act. The procedure for registration and formation of LLC is as follows:
Step#1: Hire a registered agent
According to Chapter 613a, Sec. 34-243n., of the Uniform Limited Liability Company Act, each and every Connecticut LLC, both domestic and foreign will be required to designate as well as maintain a registered agent in this state. If you are planning to form a Connecticut business then we would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Connecticut.
We are in compliance with all regulations in the State of Connecticut.
Step#2: Name Registration
According to chapter 613a, Sec. 34-243l, LLC company formation in Connecticut is possible only after you reserve the name of your domestic or foreign business entity. Once your business entity name is reserved, it will have exclusive rights for a period of 120 days. You can reserve a name by submitting the “Application for Reservation of Name” to the Secretary of State.
If you are forming a foreign LLC then according to chapter 613a, Sec. 34-243m, you will need to register your business entity name by filing an “Application for Registration of Name”.
Step#3: Certificate of Organization and Foreign Registration Statement
If you are planning to form a Connecticut business LLC then the most important step is to prepare and file with the proper documents for a Limited Liability Company. You will be required to file a Certificate of Organization for a domestic LLC and “Foreign Registration Statement” for a Foreign LLC. Depending on the nature of the business entity, the documentation can be submitted online or with the Secretary of State’s office.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.
Should you have any questions regarding how to form a Connecticut business, feel free to call us at 702-871-8678.
Connecticut Corporation Registration and Formation
If you are planning to form a corporation in Connecticut then the procedure for registration and formation is as follows:
Step#1: Maintain a Registered Agent
According to Chapter 601, Sec. 33-660., Business Corporations Act, you will be required to maintain a registered agent if you are planning to form a Connecticut business. A registered agent is required for both domestic business entities as well as foreign corporations authorized to transact business in the state of Connecticut. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Connecticut.
We are in compliance with all regulations in the State of Connecticut.
Step#2: Name Registration
According to chapter 601, Sec. 33-656 if you are planning to form a corporation in Connecticut then it will be possible only after you reserve the name of your domestic or foreign business entity. Once your business entity name is reserved, it will have exclusive rights for a period of 120 days. You can reserve a name by submitting the “Application for Reservation of Name” to the Secretary of State.
If you are forming a foreign Corporation then according to chapter 601, Sec. 33-657, you will need to register your business entity name by filing an “Application for Registration of Corporate Name”.
Step#3: Certificate of Incorporation and Application for Certificate of Authority
If you are planning to form a Corporation in Connecticut then the type of registration form you will require is dependent on whether your business is based in Connecticut or it is a foreign company. You will need to file a Certificate of Incorporation for a domestic stock and non-stock Corporation and Application for Certificate of Authority for a foreign business entity. Depending on the nature of the business entity, the documentation can be submitted online or with the Secretary of State’s office.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.
If you have any questions regarding Connecticut Incorporation or LLC formation, you can simply visit the Connecticut Business formation page.
Including Louisiana State Initial Filing fee $75.00 and $89.00 fee for checking name availability,preparing Louisiana state-approved Articles of incorporation, filing Articles with state, sending Articles to you.
See what’s included
$75.00 – Louisiana State Initial Filing fee
$89.00 – Checking name availability, preparing state-approved Articles of incorporation, filing Articles with state, sending Articles or Certificate of incorporation to you.
702-871-8678
