LLC in Connecticut

If you are thinking of starting a business, then one of the most favored entity structures is that of a limited liability company. You can file an LLC in Connecticut, and this will enable you to participate in various business incentive programs, including tax credit programs. These programs focus on increasing growth while minimizing overall operational costs. You can opt for Connecticut LLC filing online or offline. However, there are several requirements that you will need to fulfill before and after you apply for new LLC registration. You can even move your existing LLC to this state through foreign qualification.

What is a Connecticut LLC?

The Internal Revenue Service (IRS) has defined a Limited Liability Company (LLC) as a type of business structure that is allowed by state statutes, although regulations may vary from one state to another. Connecticut LLC filing requirements will be governed by the 2024 Connecticut General Statutes, Title 34, Chapter 613a – Uniform Limited Liability Company Act. The owners of an LLC are known as members, and there are no restrictions on ownership in most US states. Members of a Connecticut LLC can be individuals, other LLCs, corporations, and even foreign entities.

When you file a Connecticut LLC application, you will be able to enjoy several advantages of this type of structure, like pass-through taxation. After registering your company, you can even elect an S Corporation tax status.

Benefits of forming an LLC in Connecticut

As a first-time business owner or entrepreneur, choosing the right entity structure can often be decisive when it comes to company operations and long-term sustainability. You can choose to register any entity structure, although a Connecticut LLC search will reveal that this type of entity structure has many advantages. Let’s look at some of the top benefits:

• Pass-through taxation – When you file an LLC in Connecticut, this will help you derive maximum leverage. Pass-through taxation is where a business entity does not pay taxes at the business level. Instead, the income will be passed on to the owners of such a business, and they will need to file personal income tax on their share of profit from the company.
• Flexible ownership and management – If you start a Connecticut LLC, one of the key benefits is the flexibility to manage your company. An LLC can be member-managed or manager-managed. There are no restrictions on the number of members in your company. A limited liability company allows an extremely diverse ownership structure and, hence, is favored by entrepreneurs.
• Limited liability protection – This is definitely one of the greatest features of an LLC. Once you register an LLC, it will offer liability protection to the owners of the company. This refers to the fact that your personal assets cannot be used by creditors to satisfy any financial obligations of the company, like debts.

Start an LLC in Connecticut

There are several Connecticut LLC filing requirements that you will need to fulfill in order to register your company in the state and operate it smoothly. This could vary from filing of formation documents to acquiring proper licenses or permits. Let’s take a look at some of the important aspects of starting your LLC in this state.

1. Choose a Connecticut LLC name

One of the most important Connecticut LLC filing requirements is the company name. Your LLC name has to be mentioned in the company registration documents as well as licenses. Hence, the fundamental step is to identify a proper business name and ensure it is compliant with the 2024 Connecticut General Statutes. Let’s take a look at the important steps in this process.

• The name of your company must include a word, phrase, or abbreviation like “limited liability company,” “limited”, “ltd.,” “LLC,” or “L.L.C.,” pursuant to CT Gen Stat § 34-243k. (2024).
• You need to ensure the name is distinguishable in the Secretary of State’s records.
• Your chosen name should not be similar to the name of an existing person or entity.
• The chosen name should not contain any language that implies or states that the domestic or foreign limited liability company has been organized for a purpose other than what has been permitted by subsection (b) of section 34-243h.
• The use of certain words or phrases is restricted in the state, especially those that imply the company is a government agency, a bank, or a licensed professional.
• You need to conduct a Connecticut LLC search, also known as a name availability search, with the Business Services Division.
• If the chosen LLC name is available, then you can file the “Application for Reservation of Name” or BUS-002 form.
• You will need to submit this form along with a fee of $60.
• Your LLC name will be reserved for an effective period of 120 days pursuant to CT Gen Stat § 34-243l. (2024)

2. Choose a Connecticut LLC registered agent

If you have conducted a proper Connecticut LLC search and reserved your business name, the next step is to choose a registered agent in the state. The law states that an LLC, or any new or existing business operating within this state, must hire and continuously maintain a Connecticut LLC registered agent pursuant to CT Gen Stat § 34-243n. (2024).

The roles and responsibilities of a registered agent remain largely consistent across states, although the services offered may vary depending on the agent you choose. The most important responsibility is that of delivering service of process. IncParadise can serve as your registered agent in Connecticut, as we are committed to complying with all state requirements and laws. We also offer several types of business services, like new LLC registration as well as fulfillment of annual maintenance requirements.

3. File Certificate of Organization with the Connecticut Secretary of State

Every new domestic or foreign entity in this state must register or qualify as a foreign entity. You will need to submit a Certificate of Organization to register a domestic LLC pursuant to CT Gen Stat § 34-247. (2024). You can choose Connecticut LLC filing online or submit the same with the Business Services Division, Connecticut Secretary of the State.

You will need to submit a Certificate of Organization along with a fee of $120. It is important to note that you need to provide information pertaining to the appointment of a Connecticut LLC registered agent, along with the certificate.

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4. Prepare Connecticut LLC operating agreement

An LLC operating agreement is considered a legal and binding document that primarily outlines the various rules and regulations for operating a limited liability company (LLC). This document provides a detailed view of the company’s operational and financial decision-making processes, as well as the rights and responsibilities of its members. If you want to start a Connecticut LLC, then you will need to ensure you have created this legal document. Although in some US states, this is a required document for establishing an LLC, you are not required to submit it to the state. The scope, function, and limitations of an LLC operating agreement are provided in 2024 Connecticut General Statutes, CT Gen Stat § 34-243d. (2024).

The operating agreement doesn’t fall under Connecticut LLC filing requirements, but a limited liability company and its members will be bound by and have to enforce this agreement. Some of the important areas that a basic operating agreement contains are as follows:

• Statement of intent
• Distribution of profits and losses
• Member duties and benefits
• Powers and duties of members and managers
• How board member meetings will take place
• Regulations and procedures related to new member admission
• Voting rights
• Time period of operation
• Buyout and sellout processes or ownership transitions
• Elimination or limitation of any and all liabilities
• Tax considerations

5. Obtain an EIN for a Connecticut LLC

Once you file a Connecticut LLC application and it is registered, then certain state laws and rules have to be followed. Every new and existing business operating in this state needs to file some form of taxes, and this is where possessing an Employer Identification Number or EIN is beneficial.

There are several benefits of having an EIN for your LLC, and the top one is simplifying business tax filing. You will need an EIN to handle any type of tax obligation, and it will also help you access certain tax benefits. This is a unique nine-digit number issued to a limited liability company by the Internal Revenue Service (IRS) for the purpose of identifying that entity. An EIN is also known as the federal tax ID number (FEIN).

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6. Check local licenses and permits

Once you file an LLC in Connecticut, your company needs to maintain legal compliance in the state. One of the foremost requirements is that of obtaining relevant business licenses and permits. The state of Connecticut does not have a statewide general business license like Delaware does. However, other types of licenses may be applicable. The business licenses for a Limited Liability Company in this state are categorized as follows:

• Sales Tax Permit – Every state in the USA that has sales and use tax requires businesses to apply for and obtain necessary permits. Connecticut will require your LLC to apply for one only if it meets certain conditions. The Connecticut Department of Revenue Services requires only those businesses to obtain a sales tax permit who are involved in the following activities:
  • Selling, renting, or leasing goods
  • Selling a taxable service
  • Operating a bed and breakfast establishment, motel, hotel, or lodging service
• This is also known as a sale-and-use tax permit in Connecticut. You will not require this permit if you make an isolated sale. To obtain this permit, you will need to register online through myconneCT. This permit will be issued by the Department of Revenue Services (DRS).
• Licenses and permits by activity – Licenses in the state of Connecticut are issued based on the business activity or industry. There are different and dedicated government departments that are responsible for the issuance of these licenses. You will need to conduct a Connecticut LLC search for licenses based on the industry your business is in.
  

  For Example, if your business is operating in industries like construction or retail, then the license will be issued by the Department of Consumer Protection (DCP). Similarly, if you provide healthcare facilities, then the license will be issued by the Department of Public Health (DPH).

• Licenses issued by City/County – The third category of license is known as local licenses. These are issued by proper authorities in the city or county where your business is operating. The issuance of these licenses will vary according to business activity. The requirements and fees will vary from one county or city to another.

Searching for the right license or permit and finally obtaining it will take you through a maze of requirements. A reputable Connecticut LLC registered agent like IncParadise can help you identify relevant licenses and permits for your business. All you have to do is choose the “Business License Research Report” service. This is basically a detailed report containing a list of filing instructions, supporting document requirements, and fees for all business licenses and permits in this state.

7. Open a Connecticut LLC bank account

When starting a new LLC, business owners typically use their personal bank accounts for all transactions, including those related to their business. Mixing your personal and business transactions can lead to complexities in the long run. Hence, opening a business bank account is highly recommended, and it also comes with numerous benefits. This type of account is also known as a checking account. You should always conduct a Connecticut LLC search to find banks that offer personalized business services, such as overdraft protection, Account Management Tools, and merchant services.

One of the important features that most businesses look at is digital banking. A top digital banking platform is Cheqly. They provide the flexibility to open a business bank account in the USA, from anywhere in the country or abroad. You can not only open an LLC bank account quickly, but you can also access several smart features, like using physical or virtual debit cards for making payments faster.

8. Comply with taxes and other regulations

Once you start a Connecticut LLC, you will need to comply with the state’s annual maintenance requirements. The two most important annual requirements are filing taxes and submitting an annual report. Since an LLC is considered a “pass-through tax entity” for tax purposes, the burden of filing federal income tax passes to the individual owners. As an owner of the company, you will need to file the Connecticut Composite Income Tax Return. Apart from this, you may be required to file Connecticut employer taxes and sales and use tax. The latter depends on the business activity.

Another important Connecticut LLC filing requirement is the annual report. You will be required to file this by March 31 each year. You will also be required to renew your business licenses and permits as and when specified by the state laws or local zoning laws.

Know more about starting an LLC in Connecticut!

A Connecticut LLC registered agent can provide meaningful assistance towards the registration of a limited liability company in this state. However, you may have several queries regarding LLC formation, the cost of formation, and related matters. Hence, we have created a special “Frequently Asked Questions” section to address some of these queries.

Is Connecticut a good state to form an LLC?

Connecticut is home to several Fortune 500 companies like EMCOR Group, Inc., The Hartford Insurance Group, Inc., Stanley Black & Decker, and Amphenol Corporation, among others. The state provides new and existing LLCs with several small-business incentives, and there are additional advantages as well. Some of the reasons why entrepreneurs prefer to file an LLC in Connecticut are:

• It is home to 354,013 small businesses
• The state supports innovation and is responsible for inventing the world’s first nuclear submarine
• It boasts of having the highest per capita income as well as median household income in the nation
• One of the strongest industries is the financial services industry
• The average median income of self-employed individuals operating businesses is $60,584
• It provides quick access to large metropolitan areas like Boston and New York
• There are several innovation hubs in Hartford, Stamford, and New Haven
• Highly affordable cost of living
• The state offers several small-business and tax incentive programs, including corporate tax credits and exemptions.

How do I know if my Connecticut LLC name is available?

It is imperative that you first identify or choose a business name in compliance with the LLC naming guidelines as mentioned in the 2024 Connecticut General Statutes. You will then need to conduct a Connecticut LLC search. This is also known as a name availability search. The search helps in checking through the state database for unique names. If the chosen name is available, you can proceed to reserve it.

How much does an LLC cost in Connecticut?

If you want to start a limited liability company in Connecticut, then you will be required to submit a Certificate of Organization for a domestic entity. The initial cost to file an LLC in Connecticut is $120. Apart from the LLC registration cost, there will be other costs associated with name reservation and business licenses, permits.

Do I need a business license for my Connecticut LLC?

Yes. A business license is required for making your LLC operational. You may be penalized if you conduct business without proper licenses or permits.

Can I set up a single-member LLC in Connecticut?

Yes. You can set up a single-member LLC (SMLLC) in Connecticut. The process and documentation will remain the same as those of a sole proprietorship.

What taxes does an LLC pay in Connecticut?

One of the important Connecticut LLC filing requirements is annual tax filing. Since it is a pass-through entity, you will need to file personal income tax. You may also be required to file other taxes applicable in the state, depending on the business activity, location, and employees.

Can I register a foreign LLC in Connecticut?

Yes. You will need to register through the process of foreign qualification to transact business in this state. You have to file the Foreign registration certificate or Foreign registration statement pursuant to CT Gen Stat § 34-275b. (2024).

How do I dissolve my Connecticut LLC?

After a Connecticut LLC is filed online, if you want to dissolve your company, then there is a process to do so. You will need to file a Certificate of Dissolution for a Limited Liability Company pursuant to CT Gen Stat § 34-267a. (2024). There is no filing fee for the same.

Ready to form a Connecticut LLC?

A Connecticut Limited Liability Company is one of the most favored structures in the state. There are several advantages to this type of structure, and you can also benefit from state incentives. You can file a Connecticut LLC application to start a single-member or a multi-member LLC. IncParadise, a reputable Connecticut LLC registered agent, can assist you with the entire process of new business registration in this state.

IncParadise has helped with the registration of hundreds and thousands of businesses. We also offer a wide variety of additional services like foreign qualification, EIN assistance, and certificate of good standing, among others.

Connecticut LLC or Corporation

The state of Connecticut is a promising destination for small businesses as well as large corporations. The low cost to form a Connecticut Corporation is one of the important components of its overall good business climate. One of the highlights of this state is the growing startup ecosystem. In fact, the central part of Connecticut is known as the Innovation Corridor as it is home to high-tech industries, research institutions, access to incubators and accelerators, and renowned universities. Small-business incentive programs, skilled workforce training, and workshops make the state an ideal place to conduct a wide range of business activities. However, Connecticut LLC cost per year, annual maintenance requirements, business laws, and tax liabilities should be taken into consideration prior to new business formation.

Which business entity should I choose for the Connecticut business?

One of the fundamental decisions that you will need to make when starting a new company is choosing the entity type or structure. There are a variety of entity structures that you can form in Connecticut. However, most entrepreneurs choose to form a Limited Liability Company (LLC) or a Corporation. To make this crucial decision, you will need to prepare an LLC vs Corporation in Connecticut checklist. Each structure is unique and has its advantages and liabilities. Hence, it is also important to take into account the cost to form a Connecticut LLC or a Corporation. These costs will be both fixed and variable in nature, helping you create a proper startup budget plan that focuses on financial objectives. Let’s examine some key features that will help you determine the type of entity you can form in this state.

• Pass-through taxation – One of the first aspects to consider while doing an LLC vs a Corporation in Connecticut comparison is Pass-through taxation. This term is used for those entities where taxes are not applicable or filed at the entity level. Instead, the income is passed on to the owners of such entities, and they file personal income tax returns. Such a company is also known as a flow-through entity. The advantage is that this process eliminates double taxation.
• Overall Maintenance – Although this area is often overlooked, it remains quite important. In fact, most states have annual maintenance costs associated with forming various entities. The annual maintenance cost could be higher for a specific entity, such as a Corporation, than for a sole proprietorship. Apart from this, maintenance of an entity includes various components like cost to form a Connecticut Corporation or any entity, name reservation or registration, federal, state, and local taxes, amount of documentation required, annual meetings, bylaws, finances, and business licenses, among others.
• Ownership – Ownership is another key area, as different entity structures have different ownership requirements governed by state business laws. For example, an LLC can have a single owner or multiple owners, while it is mandatory for a Corporation to have several shareholders, directors, or incorporators.

Pros and Cons of forming an LLC or Corporation in Connecticut

Entity structure is at the core of any new business formation. The type of structure you choose will be decisive in terms of operations, taxes, and annual state requirements. The Connecticut LLC cost per year or that of a corporation is also an important component and can be an advantage or liability of a specific structure. If you are planning to incorporate or register an LLC in this state, then let’s quickly take a look at the various pros and cons of these structures.

Pros of an LLC or Corporation

• Limited liability protection is the highlight of both LLCs and corporations
• An LLC vs a Corporation in Connecticut reveals that an LLC offers significant flexibility in terms of taxation
• You can form a Single-member LLC, a Multi-member LLC, or elect an S Corporation from a tax perspective
• A limited liability company offers higher operational flexibility as compared to a corporation
• A limited-liability company can be managed by a single individual or a group of people known as members.
• A corporation has the ability to raise funds by issuing stock or shares
• It is easy for a corporation to attract investors or seek funding from venture capitalists
• The ownership structure is quite flexible in an LLC as compared to a corporation

Cons of an LLC or Corporation

• The overall cost to form a Connecticut Corporation is always higher than other forms of entities
• Corporations are known to have a rigid management structure and have to hold annual shareholder meetings
• Corporations are subject to double taxation, meaning they have to file taxes twice on the same source of income.
• Unless the members of an LLC opt to be treated as a corporation, the IRS will treat an LLC as a partnership. Hence, the self-employment tax will be applicable.
• It is very difficult for a Limited Liability Company to seek outside investors, and this type of entity cannot issue shares
• Depending on the state of formation, LLC members are subject to self-employment tax
• Corporations have a higher administrative burden as they are required to file extensive paperwork and need to maintain additional compliance with Connecticut state and regulatory requirements

Connecticut LLC Cost

A Limited Liability Company is a type of business structure that offers many advantages, especially to those starting a business for the first time. If you want to register an LLC, then it is important to first identify and understand the cost to form a Connecticut LLC. Let us take a look at the various costs that you may incur in this state.

Cost for forming a Connecticut LLC

The Connecticut LLC cost per year includes one-time and recurring costs. The process of LLC formation, as well as fees, may be different from that of other entity structures in the state of Connecticut. These are:

• The first important cost is the filing fee for the Application for Reservation of Name. There is a $60 fee.
• According to state laws – CT Gen Stat § 34-243n. (2024), you will need to hire and maintain a registered agent for service of process. The cost or fee varies depending on the RA service you choose.
• The third and most important is the cost to form a Connecticut LLC. You will need to file a Certificate of Organization, along with a $120 filing fee.

Annual maintenance cost for Connecticut LLC

Once you have registered a limited liability company in the state of Connecticut, your company will need to ensure complete compliance with state business laws. An important part of this compliance is meeting all annual requirements, which involves a certain cost. The Connecticut LLC cost per year for annual maintenance includes:

• Annual Report – If you register a limited liability company in Connecticut, then you will need to file an annual report. There is a filing fee of $80. This is a recurring Connecticut LLC cost per year, and failure to file this report may lead to your company not having a good standing in this state.
• Taxes – A limited liability company in Connecticut must file various taxes. The taxes have to be filed annually and hence are considered a recurring and variable cost. It is an important component of the cost to form a Connecticut LLC and will include Federal, state, and local taxes.
• Business Licenses – One of the important Connecticut LLC costs per year is the renewal of your business licenses. This is a recurring fixed cost, and the fee will vary according to the type of license and the number of licenses or permits required by an LLC.

It is never easy to start any form of business, as there are several processes involved in registering such an entity while being compliant with state laws. The Connecticut LLC cost per year, as well as registration costs, may be different for each company. We, at IncParadise, can assist you with the registration of your LLC in Connecticut and provide valuable assistance based on your requirements.

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Connecticut Corporation Cost

A corporation has several financial advantages over many other forms of businesses, and hence, entrepreneurs prefer this type of structure. When you incorporate in Connecticut, you will be able to access different forms of state business incentives as well. Forming a corporation will lead to certain costs. These include the cost to form a Connecticut Corporation and annual costs. Let us look at the different cost components for a Corporation.

Cost of forming a Corporation in Connecticut

The cost to incorporate in Connecticut takes into account several processes. This cost will also be dependent on whether you want to establish a domestic entity or a foreign company. The important costs related to incorporation in this state are:

• The first component of the cost to form a Connecticut Corporation is name reservation. You will need to file the Application for the reservation of the Name. There is a fee of $60.
• You will also need to hire and maintain a registered agent for service of process. The cost or fee would vary according to the service you choose.
• The most important forming cost for a Connecticut Corporation is that of incorporation. You will have to file a Certificate of Incorporation along with a fee of $250.

Annual maintenance cost for Connecticut Corporation

In addition to the initial cost to form a Connecticut Corporation, there will be other costs associated with your company’s annual maintenance. The costs involved are as follows:

• Annual Report – Once you incorporate in Connecticut, you need to fulfill all annual state requirements to maintain good standing. You will be required to file an Annual Report. The filing fee is $150 and has to be filed with the Connecticut Secretary of State – Business Services Division.
• Taxes – A recurring annual maintenance cost of a Connecticut Corporation is that of taxes. There are different types of taxes that may be applicable according to the business activity and jurisdiction. The state of Connecticut imposes a mandatory corporate tax at a flat rate of 7.5 percent. Apart from this, your company may be required to file sales and use tax as well.
• Business Licenses – Business licenses are important as they will ensure you are able to operate your company in a smooth manner. The type of license or permits required by your company will depend on the activity, the location, and the industry or profession. Licenses are an integral component of the cost to form a Connecticut Corporation and are considered to be a recurring cost.

The overall formation cost for a Connecticut Corporation will include several key areas, such as obtaining an Employer Identification Number (EIN), opening a business bank account, and any amendments to the articles, if any. The costs would be different for foreign corporations. We, at IncParadise, can provide guidance towards fulfilling annual maintenance requirements in the state and also help you with the process of incorporation.

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Need any Assistance in Forming Your Connecticut LLC or Corporation

The entity structure is of prime importance as it defines the nature of operations, the tax liabilities, ownership, and finances. The most popular entity structures are considered to be those of a Corporation and a limited liability company. The cost to form a Connecticut LLC or corporation and the annual maintenance costs will vary from one company to another.

We, at IncParadise is one of the leading registered agent service providers in Connecticut, with experience and expertise in incorporation or new business registration. We have helped thousands of customers to form corporations and LLCs in the state. We also provide a wide variety of additional services like getting an EIN tax id, foreign qualification, S corporation status, and dissolutions, among others.

Doing Business As or DBA in Connecticut

Connecticut is home to 365,824 small businesses, including all forms of entities, ranging from sole proprietorships to LLCs, partnerships, and even mid-sized corporations. If you are planning to start a new company in this state, then choosing the right entity structure is important. Once you have finalized a structure, the next step is to choose a relevant or strong business name. Now, you can opt for standard company names or abstract names like Zensar or Innovative Technologies. You can also choose to use the owner’s legal name, like James Firth & Associates LLP. If you don’t want to use the owner’s name, then filing a DBA in Connecticut is the best option. You are probably asking yourself – How do I look up a DBA in Connecticut and the answer lies in the processes involved. The immediate step, however, is to identify the various conditions under which you can use a trade name or fictitious name in this state.

What is DBA in Connecticut?

If you are a first-time business owner, then there is a high probability that you may get confused between a traditional business name and a DBA. A DBA in Connecticut is known as a trade name or even an assumed name. This name is considered to be different from that of an owner’s name. Some businesses use an owner’s name, but if you don’t want to use your name, then this is a good option. You can easily file a trade name in Connecticut. A trade name or “Doing Business As” name allows any company to operate under this name without the need for creating a new legal entity. Hence, businesses planning to expand often file a Connecticut DBA online application. Let’s look at an example to understand a DBA name.

Example: If you own a business in Web Design and Development and its legal name is your own name (e.g., Chris Harris Digital). Now, you want to open a different business specializing in search engine marketing (SEM). At this point, you can merge this service offering as a part of your existing company’s portfolio. In case you want to start a new branch and want to establish a separate company, then you will not be able to use your own legal name. This is where filing a DBA in Connecticut is recommended. So the DBA name can be Harris Digital or Harris B2B Marketing Agency. This will ensure your customers know what you are offering. This trade name or a DBA will not change the business structure.

When do you need a DBA?

A company name should always be well thought out. This is because it is the very first thing that investors, probable customers, vendors, and even potential employees will notice, and it will also shape their initial impression. This impression will play a key role in influencing their overall perception of your brand. Hence, you should conduct a Connecticut trade name search and identify a name that is distinctive, memorable, and appropriate in accordance with the state DBA laws. A trade name in the state of Connecticut is governed by the 2024 Connecticut General Statutes Title 35 – Trade Regulations, Trademarks and Collective and Certification Marks. There are several reasons for choosing a DBA or a trade name, and some of the top reasons are:

• Do not want to use a legal name – Every business, irrespective of its structure, has a “legal name” and this is also known as a “true name”. The legal name of a partnership or sole proprietorship will be the name of the business owner or owners. Similarly, the legal name of an LLC or a corporation will be the one listed in its registration document. Now, if you don’t want to use your legal name or true name, then you will need to file a trade name in Connecticut. This name will be considered as your “Doing Business As” name (DBA).
• Entering a new line of business – If you are planning to expand your existing business or want to enter a new line of business, then a DBA name can be quite helpful. A trade name in Connecticut can be used by a corporation or an LLC for promoting new products or services that are not well represented by the existing business name. Sometimes, a company opts for a fictitious name because it is entering into a new market. You can conduct a Connecticut trade name search to zero in on the most appropriate name for your new product or services.
  

  Example: Jacob Wild wants to set up a limited liability company (LLC) with his own name, which is Jacob Wild Software LLC. He now plans to diversify into offering enterprise-level artificial intelligence solutions. He can file a trade name in Connecticut specific to this new service and name it “Wild AI Solutions.”

Filing DBA in Connecticut for LLC and Corporation

A DBA (doing business as) is known as a trade name in Connecticut and is used by a wide variety of entity structures. If you want to start a limited-liability company or a corporation and don’t want to use your legal name, then filing a DBA in Connecticut is recommended. There is a specific process for filing your trade name. You will need to conduct a Connecticut trade name search, also known as a name availability search. The process as well as the fee may be different from that of reserving a traditional LLC name or corporate name.

Do a Connecticut Trade Name Search

In order to file a trade name in Connecticut, you will need to first identify a name. This will be followed by conducting a trade name search. If you are thinking about how to look up a DBA in Connecticut, then there is a process for the same. There are certain aspects in this process that you will need to consider. They are:

• You will need to follow the naming rules and guidelines of the state. Trade name guidelines and laws are governed by the 2024 Connecticut General Statutes, Title 35 – Trade Regulations, Trademarks and Collective and Certification Marks.
• You need to check the prohibitions and exceptions towards using fictitious business names in this state pursuant to CT Gen Stat § 35-1. (2024). According to the law, it is prohibited to use words like “bank”, “banking”, “banker”, or “trust”, among others.
• Once you have chosen a trade name, you need to conduct a search using the city clerk’s records in the jurisdiction or the city where you plan on doing your business.
• You can also conduct a search for trademarks or federally registered names using the trademark database, also known as Trademark Electronic Search System (TESS).

Register your Connecticut DBA

Once you have chosen a trade name for your LLC or corporation, you have to conduct a Connecticut trade name search. If the chosen name is available, then you can file a DBA online. The registration of your corporation or LLC trade name is important as it will help notify the general public of this state regarding the existence of your company or that your company is conducting business in this state under the said assumed name. The process for filing a DBA in Connecticut may be different for domestic and foreign entities.

In order to conduct business under a DBA, you will be required to complete and file a Trade Name Registration form. Since you will need to apply for a Trade Name Certificate with the city or county where you are operating, the form and process may be different. Let’s look at an example.

Example – If you are planning to operate from Bridgeport, CT, then you will need to conduct a trade name search with the Office of the Town Clerk of Bridgeport. If your chosen DBA is not already in use, then you can file a Connecticut DBA online application. It is known as a “Trade Name Certificate,” and the filing fee is $20. If you start a business in the City of Stamford, then you will have access to its online searchable database of Registered Trade Names. If the name is available, then you can file a trade name in Connecticut application with the town clerk. The fee is $20 for filing a DBA and an additional $3 for each certified copy.

Alternatively, we can help you to apply for a Connecticut DBA online. We at IncParadise have a team of experts with knowledge of the process as well as local laws. We will guide you through each and every process, thus helping you to save time and ensure your DBA or trade name application is accepted with ease.

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Managing Connecticut DBA

Once you apply for a Connecticut DBA online or offline, it will clear the way for your company to transact in this state using the said trade name or DBA. Each state has its own laws and regulations pertaining to a trade name or DBA. These laws are also applicable to the renewal, changing, or cancellation of a trade name in a specific jurisdiction or state. Let’s look at the various processes applicable to managing a Connecticut DBA online application.

How to renew a Connecticut DBA?

Filing a DBA in Connecticut means it will be valid for a period of 5 years from the date it is filed. So, if you have filed your trade name prior to January 1, 2025, then it will expire on December 31, 2029. According to CT Gen Stat § 35-1b. (2024), your trade name certificate has to be renewed six months prior to the expiration date. If the expiration date is December 31, 2029, then you will need to file the Connecticut DBA online application in July 2029. You will need to file it with the office of the town clerk, and the renewal fee will be in accordance with section 7- 34a of the general statutes.

How to change a Connecticut DBA?

Once you apply for a Connecticut DBA online, it will be registered for a period of 5 years. Now, within 1 year, if you want to change the existing DBA, is it possible? Yes, it is possible, although the laws for filing an amendment may vary from one jurisdiction to another. The standard procedure is to withdraw the existing trade name and then file a new Trade Name Certificate with the office of the city or town clerk. This process requires you to conduct a Connecticut trade name search for any change in the original name.

The Public Act 24-111 states that any information contained in the original application for a DBA or a trade name certificate can be amended at any time prior to the expiration of the said trade name certificate. The fee and process of this amendment will be in accordance with section 7-34a of the general statutes.

How to cancel a Connecticut DBA?

If you are asking yourself the question, how do I look up a DBA in Connecticut for cancellation then the answer lies with the office of the city clerk or town clerk. You will be required to file a “Trade Name Cancellation” application or form with the Town or City Clerk pursuant to C.G.S. § 7-34. The filing fee is $20.00, and this form may require notarization.

Need Any Assistance in Filing a Connecticut DBA?

The process to apply for a Connecticut DBA online requires you to provide precise information while ensuring full compliance with the Connecticut General Statutes Title 7. Municipalities § 7-34b and federal trademark laws. You can file a Connecticut DBA online application after a trade name search reveals the availability of your chosen name. This process may be intricate and confusing. This is where IncParadise can provide guidance. We have expertise in state business regulations and can help you file a Connecticut DBA effortlessly.

We can also provide additional services that will ensure your other business requirements are fulfilled, like getting a tax ID, S corporation status, and dissolutions, among others.

Sole Proprietorship in Connecticut

There are over 360,000 small businesses in the state of Connecticut, and many of them are sole proprietors. When you search for a sole proprietorship in Connecticut, you will be surprised to find that this type of business structure has permeated a wide variety of industries and specializations. Some of the most common specializations in sole proprietorships include Accountants, Professional photographers, Caterers, Cafe’s and Bakeries, Restaurants, Retail Stores, Consultants in any area, like legal or IT, Web and Graphic designers, and coding professionals, among others.

What is a sole proprietorship in Connecticut?

You can start a sole proprietorship in Connecticut in just about any industry, right from tourism to information technology, logistics & distribution, financial services, and green energy, among others. There are certain elements that play a key role in the growth and development of a sole proprietorship in this state, such as a robust startup ecosystem, the availability of grants and other funding, and low business costs, among others. The important question here is how to start a sole proprietorship in Connecticut. The business owners of this type of structure are known as sole proprietors or sole traders. This is because it is run by an individual, who will be responsible for all profits, liabilities, business assets, operations, finance, and marketing. This type of business is not required to be registered with the Connecticut Secretary of State and hence can be quickly formed.

Important features of sole proprietorship in Connecticut

When you search for sole proprietorship in Connecticut, you will find that this simple type of entity structure also has several advantages and promising characteristics. Some of the top key features are:

• The most important feature of a sole proprietorship is complete autonomy. You will be the decision-making authority for choosing a growth plan, allocating profits, targeting markets and customer segments, and even expanding the business.
• A sole proprietorship in Connecticut will have a different tax structure. Compared to other entities, such as an LLC or a Corporation, the tax liabilities of this structure will be lower.
• One of the remarkable features of a sole tradership is simplicity in establishing and closing. Most entities require long processes and a wide variety of documentation for registration, as well as dissolving or closure. A sole proprietorship doesn’t require such processes or documentation.
• Secrecy and confidentiality are other top characteristics of any sole proprietorship. This type of business is not required to disclose business information and financial accounts publicly.

Steps to Start a Sole Proprietorship in Connecticut

You will be confronted with the question of how to start a sole proprietorship in Connecticut and deliberate about the operational requirements. Although this type of entity is easy to form, there are certain state as well as business requirements that you need to fulfill to ensure overall smooth operations. Let’s look at some of the important areas to focus on.

1. Prepare a business plan

Once you have made a decision to form and operate a sole proprietorship in Connecticut, the first step will be to create a clear roadmap. This is known as a business plan or a business blueprint. It will help you in analyzing the potential markets, demographics, customer needs, buying behavior, and competition, among others. It will also encompass a brief overview of the business idea, objectives, and key strategies. A well-thought-out plan will help in clarifying the business model, enable good decision-making, and provide a framework for securing financial aid. Some of the most common aspects of a sole proprietorship business plan are:

• Executive Summary
• Business Idea
• Company Description
• Market analysis
• SWOT analysis
• Analyzing Competition
• Operational Plan
• Marketing and Sales Strategy
• Key performance indicators (KPIs)
• Financial Projections
• Future Expansion

2. Choose a Connecticut business name

The steps towards starting a sole proprietorship in Connecticut start with identifying a proper business name. There are certain rules and guidelines to be followed when naming your sole proprietorship. Your chosen name should be compliant with the 2024 Connecticut General Statutes. It is worth noting that a sole proprietorship can use the owner’s name as its own name. You need to consider several other factors when choosing a name, such as your products, services, and target audience. So, if you were to choose a name like Carla’s Baked Goods, your target audience would have a fair idea of the products you offer.

It is also important to conduct a name availability search for a sole proprietorship in Connecticut. Here are some easy tips that you can follow while choosing a company name:

• Follow Connecticut state’s naming guidelines, especially focusing on the permitted names section pursuant to CT Gen Stat § 34-243k. (2024)
• The name of a sole proprietorship should be similar to that of any other company or competitor
• Try to avoid company names that are hard to pronounce or spell
• When choosing a name, you may consider the products or services being offered
• Try to ensure that the chosen name can still be used when the business evolves in the future
• Search for a sole proprietorship in Connecticut for availability as a domain name for your website
• You can use AI-Powered business name generators like Wix, BrandCrowd, Namelix, Renderforest, etc., for creating a business name

3. File a trade name

A trade name is also known as a fictitious name or a DBA (Doing Business As) name. A sole proprietorship in Connecticut can be transacted using a trade name. This type of business name can be registered by an individual, a group of individuals, or even a legal business entity like a corporation or an LLC. If you want to operate a sole proprietorship and wish to conduct your business under any name, which is different from your or the owner’s name, then such a company will be required to file a Connecticut trade name. The trade name registration documentation has to be filed with the office of the local town clerk from where your company is primarily transacting. There are certain aspects to consider while choosing a trade name and name registration. Let’s look at some of them:

• You will need to follow trade name or fictitious name rules and regulations as governed by the 2024 Connecticut General Statutes, Title 35 – Trade Regulations, Trademarks and Collective and Certification Marks, Chapter 620 – Trade Names
• Once you have chosen a DBA name, it is important to conduct a trade name search, also known as a business entity search. This will reveal whether your chosen name is available or not.
• If your chosen name is available, then you will need to file the State of Connecticut, Trade Name Application for (Natural Persons) to register this name.
• The fee to file a Connecticut trade name is $20 and has to be deposited with the office of the town clerk pursuant to C.G.S. § 7-34

Let’s look at an example to understand how this works.

Example: Your name is Sofia Lucibello, and you want to start a sole proprietorship in Connecticut as an Italian Pastry Shop in Milford, CT. You can use your own name, like ‘Sofia Lucibello Italian Pastry Shop.’ Alternatively, you can choose to use a trade name like “Lucibello’s Italian Pastry Shop”. Now, if you conduct a DBA name search in Connecticut, then the results show that such a business already exists in New Haven, CT. You can modify the same name and make it ‘Sofia’s Italian Pastry Shop’. If you conduct the search again, then it reveals that this name is available. You can now go ahead and file a Connecticut trade name using the Certificate of Trade Name application. You have to file it with the Town Clerk, and the fee is $10.

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4. Get EIN

As per the Internal Revenue Service (IRS), most legal and profit-making entities are required to obtain an Employer Identification Number (EIN). This helps ensure their taxes are properly documented. However, there is an exception for sole proprietorship businesses. The IRS has not made it mandatory for this type of entity to obtain an EIN. As a sole proprietor, you can file your taxes using your Social Security Number (SSN). Of course, there are certain conditions under which a sole proprietorship in Connecticut will be required to apply for an EIN, and they are:

• When a sole proprietorship company hires employees
• The company plans to open a business bank account
• If you have a Keogh plan
• You have to file excise tax returns
• When you convert or change the entity structure from a sole proprietorship to a partnership or LLC
• If you file Chapter 7 (liquidation) or Chapter 11 (reorganization) bankruptcy

You will be required to fill out and file Form SS-4 with the Internal Revenue Service (IRS) to obtain an EIN.

5. Obtain necessary licenses and permits

Once you start a sole proprietorship in Connecticut, you will not be able to start transacting without getting proper licenses and permits. A business license is considered a legal document, granting permission to any entity to conduct operations within a specific industry or jurisdiction. Every business formed in the state of Connecticut needs to apply for some form of license or permit. Obtaining a license or permit also demonstrates that you are in compliance with all state and local laws and regulations. You can search for a sole proprietorship in Connecticut for the different licenses your company may require. Business licenses in this state are categorized as follows:

• Professional or Occupational licenses
• Sales Tax Permits
• Industrial or Regulated licenses
• County or Local Licenses
• Home Occupation Permit (HOP)
• Local Zoning Permits

Identifying the right type of license or permit for your sole proprietorship company in Connecticut can be a challenging task. We at IncParadise have made this process easier by offering our Business License Research Report service. This is a detailed research report that contains a list of filing instructions, supporting document requirements, and fees for all Connecticut business licenses and permits.

6. Open a bank account for your Connecticut business

When you start a sole proprietorship in Connecticut, one of the most important areas to focus on is finances. Generally speaking, sole proprietors prefer using their personal savings account for business transactions. Although it seems easy, it can create complex tax situations in the future. It is always recommended to have a separate business bank account for managing company-related transactions. This bank account will be used for everything from recording business profits and losses to making payments to the state for business-related processes. Whether you apply for a state grant or file a Connecticut trade name, the incoming or outgoing transaction will take place using this account. This type of bank account increases credibility and helps build fiscal discipline.

Alternatively, you can open a business account online with Cheqly. This is a USA bank account that offers several benefits, including access to banking from anywhere in the world. It has a strong and user-friendly onboarding interface. This is a Neobank for sole proprietorships where you can enjoy no minimum balance and basic FDIC insurance.

7. Report and pay taxes

The tax requirements in Connecticut always vary according to the entity structure chosen. If you form a sole proprietorship in Connecticut, then the taxes for this type of business will be different from those of an LLC, corporation, or partnership. Since it is owned and operated by one individual or a sole proprietor, they will have to report any income earned by filing their individual income tax return. Sole proprietors are business owners and not employees; hence, there may be a requirement for estimated income tax payments. As a sole proprietor, you will be required to file Form CT-1040 (Connecticut Resident Income Tax Return) or Form CT-1040NR/PY (Connecticut Nonresident and Part-Year Resident Income Tax Return). Apart from this, you may be required to file sales and use tax depending on the business activity. You may have to search for sole proprietorship in Connecticut for any local or municipal taxes.

Ready to Start a Sole Proprietorship Business in Connecticut

Starting a sole proprietorship in Connecticut is quite easy, although the consequent processes can be complex and time-consuming. You have to basically create a business from scratch and file a Connecticut trade name, followed by obtaining licenses and filing taxes, among others. It is important to be compliant with all business laws and regulations, as it helps any company to enjoy a good standing with the state.

IncParadise, one of the top registered agents in the state of Connecticut and can provide guidance and information to help you form a sole proprietorship in this state. We also offer a wide variety of additional services like filing a DBA, opening a bank account, and getting an EIN, among others.

Business License in Connecticut

When you register your LLC or corporation in Connecticut, the operational aspect of such an entity will be governed by the Connecticut General Statutes. Registration of a company in this state doesn’t automatically permit business transactions within the state, as there is another key requirement to be fulfilled. This requirement deals with obtaining appropriate Connecticut business licenses and permits. It is important to consider the fact that operating without required licenses can result in penalties, legal action, or even dissolution of the said entity. A Connecticut business license is not just a mandatory legal compliance, but can also increase your company’s credibility.

Who needs a Connecticut business license?

Once you register your company with the Connecticut Secretary of the State (SOS), you will need to apply for and obtain a Connecticut business license. According to the Connecticut General Statutes, most forms of entity structures, like limited liability companies, limited liability partnerships, corporations, sole proprietorships, and non-profit organizations, will need to apply for a license. Even home-based businesses will be required to obtain necessary licenses and home occupation permits. If you are planning to move your company to this state or register a foreign entity, then you will have to conduct a Connecticut business license search and accordingly apply for permits and licenses within your county and city.

What business license do I need in Connecticut?

If you have decided to register a new business or relocate your existing company to Connecticut, then applying for a Connecticut business license becomes necessary. The type of license and permit required by your company will depend on several factors, including the jurisdiction where your company is based and the primary business activity. Unlike Delaware or Nevada, Connecticut doesn’t issue a statewide general business license. However, you might need to obtain a Connecticut business license once you register your company with the Office of the Secretary of State. There are multiple categories of licenses and permits applicable in this state. Let’s try to understand the categories and what licenses you may be required to apply for.

Connecticut Business Licenses for Specific Occupations and Professions

Whatever business structure you choose for your Connecticut Company, the primary business activity may be considered under a specific profession or occupation. A detailed list of professions and occupations in this state is provided in the 2024 Connecticut General Statutes, Title 20 – Professional and Occupational Licensing and Title 21 – Licenses. A profession is defined as a business activity that requires you or business owners to possess formal education, training, specific skills, or specialized knowledge in a given industry or sector. An occupation, on the other hand, refers to the regular work that provides a business owner with income. A good example of an occupation is “Marketing,” and that of a profession is “Search Engine Marketing (SEM).” You will need to conduct a Connecticut business license search based on your occupation or profession in this state. Let’s try to understand the type of professions or occupations that require licensing in Connecticut.

The Occupational Professional Licensing Division of the Department of Consumer Protection is responsible for the issuance of such licenses. They also provide a list based on license, permit, and registration types, as well as information on how to obtain a Connecticut business license, the relevant fees, and procedures. Let’s look at an example to understand how this works.

Example: If you want to start a Public Accountancy Firm, then you will need to file the Firm Practice Privilege Form to Practice Public Accountancy Application. This has to be filed with the State of Connecticut, Department of Consumer Protection, Board of Accountancy. This is basically a type of new firm permit or license based on profession or occupation. There is a licensing fee of $150.

Example: Now, if you want to establish a manufacturing unit specializing in the manufacturing of drugs with or without controlled substances in the State of Connecticut, then you will need to apply for an appropriate Connecticut business license. The licensing fee will vary according to the substance used and the number of chemists involved. If your company hires 5 or fewer chemists and manufactures without using controlled substances, then the licensing fee will be $285. If you use controlled substances, then the fee would be $570. You may have to register with the Food and Drug Administration (FDA) and may need a Drug Enforcement Administration (DEA) registration as well.

Yes, it can be quite an exhaustive process to search for the right Connecticut business license and permits. Identifying your profession or occupation properly can ease your search.

Other Connecticut Business Licenses

While operating a company in this state, you may need to apply for multiple licenses or permits. It is always recommended to conduct a proper Connecticut business license search based on the activity and location of your company. The state has local licenses, and hence knowing zoning requirements can be quite helpful. Let’s examine some other licenses and permits that may be relevant to operating your business in this state.

Sales and Use Tax Permit

When you register a new company in the state of Connecticut, your company may be required to obtain several types of licenses depending on the industry or activity. Hence, it is always advisable to conduct a Connecticut business license search. This search is especially useful for understanding whether your company requires a sales and use tax permit in this state. If your business engages in any of the following activities in the state of Connecticut, then it is mandatory to register your company with the Department of Revenue Services (DRS). This is solely for the purpose of sales and use tax.

• Sales, rental, or lease of goods
• Selling of taxable services
• Operating a hotel, lodging house, motel, or bed and breakfast establishment
• Selling at a craft show, the flea market, antique show, trade show, and other fairs

The requirement to obtain a Connecticut business license related to sales and use tax applies to any individual, partnership, LLC, corporation, or any other form of entity that engages in any form of sales or provides specific services in this state. This applies regardless of the number or amount of sales. It is crucial to note that these rules do not apply to casual sales or isolated sales within the state, as they are considered nonrecurring.

The sales tax permit is issued by the Connecticut Department of Revenue Services (DRS). You have to apply for it online using the myconneCT portal. There is a fee of $100, and you will be required to provide your Federal Employer Identification Number (FEIN) or the Social Security Number (SSN), depending on the type of entity. If you conduct your business without first obtaining this Connecticut business license, then it can lead to a penalty of $500 or even imprisonment or both.

Local Connecticut business licensing and permits

In order to operate a business in this state, you will need to apply for the relevant Connecticut business license and permits. A noteworthy aspect is that you will need to obtain local licenses and, depending on your business’s location or jurisdiction, zoning permits. These are also known as county or municipal licenses. Each city or county in Connecticut has its own laws pertaining to permits and licenses. The types of licenses, fees, and renewals will vary from one county to another. Let’s look at an example to understand how to obtain a license and permits from a specific county.

Example: If you start a company in Stamford, CT, then there are certain business activities that may require you to apply for a Connecticut business license as well as zoning permits. If you are planning to start construction work, including redesigning or altering the hotel or restaurant space or office, then applying for related permits is necessary. Similarly, if you are based in the City of Norwich and are planning to organize temporary events, then you will need to apply for a special Connecticut business license and permits. You will also need to obtain a Letter of Zoning Compliance from the City Clerk’s office.

Connecticut home-based business license

If you are thinking of forming a startup and operating it from your residence, then it may save you overall costs, but you might still need to apply for a Connecticut business license. Permits and licenses for a home-based business may vary from one city or county to another. However, the state notes that such businesses will generally require the same licenses and permits as any other entity. If you are selling goods from home or providing taxable services, you must obtain a sales and use tax permit. Some cities or counties in Connecticut may also require you to apply for and obtain a “home occupation permit” as well as zoning permits. Let us look at an example to understand the situation.

Example: If you operate a home-based business in the Town of Canton, CT, then the local regulations state that there will be certain restrictions applicable to a minor home-based business. Such businesses will not require a zoning permit. However, if you operate a major home-based business, then it will require approval from the Planning and Zoning Commission for a special permit. This will be known as a major home occupation permit. Similarly, if a home-based company is located in the City of New London, then the regulations for a Connecticut business license and permits will be different. Home-based businesses will be permitted in specific zones of this city, and you will need to apply for an administrative zoning permit. A baking business started from home will require a Home Occupation Permit in most towns and cities.

Apart from this, you might have to apply for occupational, industrial, and professional licenses depending on the nature of the business activity. Conducting a Connecticut business license search for proper permits can be a demanding task. You can take advantage of the Business License Research Report service offered by IncParadise. This specialized service will help you get a report containing a list of filing instructions, supporting document requirements, and fees for all Connecticut business licenses and permits.

Need any Assistance in Obtaining Your Connecticut Business License?

If you are planning to start a new company in the state of Connecticut, then it becomes necessary to obtain relevant Connecticut business licenses and permits. The license or permit will allow you to transact within this state. The type of licenses will vary according to the primary business activity, industry, profession, and jurisdiction. The application, fee, and laws for a Connecticut business license will vary according to the type of license.

We, at IncParadise, can guide you towards obtaining the necessary business licenses and permits. We also provide additional services to new and existing Connecticut businesses, like EIN Tax ID and Foreign Qualification, among others.

Connecticut Business Entity Search

If you are planning to form a new LLC or corporation in Connecticut, then there are several areas that you need to focus on. One important area is conducting a Connecticut business name search. Of course, you will need to take the state’s governing laws into account first. All states in the USA, including Connecticut, require you to reserve or register your business name with the Secretary of State’s office. This is a three-step process and involves:

• Identifying a business name
• Checking for Connecticut business name availability
• Reserve or register the name

The type of business name you choose will play a defining role in the future success of your company. There is a psychological perspective behind a business name as it evokes emotions in prospective customers. These emotions can be defined by adjectives like strength, trustworthiness, expensive, innovative, and environmentally friendly, among others. It is important to remember that first impressions can be quite difficult to change. So, what can you do? Here are some tips that will help you choose the right business name.

• While choosing a name, it is important to follow the governing laws or Connecticut business name rules
  

  Example: If you want to form an LLC, then the name would be Janet Brown & Associates LLC.

• Always check the list of restricted words in your state. You should not use such words in the name
• Try to avoid any made-up words or acronyms that have no apparent meaning
• Don’t use a name that is similar to the name of another company or competitor
• You can conduct a Connecticut business name search to check the uniqueness of the chosen name
• Be careful with words that have pronounced negative connotations
• Choose a name that is easy to remember, like “Bake and Take”
• Your company name should convey the business purpose or activity, like “Alpine Clothing”
• Research and your business name ideas, including performing keyword research
• Sometimes, you can get a name idea after conducting a Connecticut business name search
• You can use business name generators easily available online
• The chosen name should not in any way cause trademark infringement
• You use a traditional business name or opt for a DBA (doing business as) name
• Ensure your chosen name is web-friendly, and the domain name is easily available

What is a Connecticut business name search?

Ever wondered why experts say that choosing a strong business name is vital for startups? It’s all about reaching out to customers or attracting them. The customer perspective is simple – your company should stand out from the crowd. This is where choosing the right name after conducting a Connecticut business name search is crucial. It takes a long time to remember a name and usually a few seconds to forget. Therefore, your company name needs to be unique. Let’s look at an example to understand how this really works.

Example: You want to establish a new business in Connecticut. It is going to be a real estate company. It is based in Hartford, CT, and is a Corporation. It is important to follow the Connecticut business name rules for a corporation. You want to name it “Carbutti & Co. Realtors INC.” Once you have chosen this name, then the next step is to conduct a Corporation name search. When you conduct the search, it brings up a similar company name based in Wallingford, CT. The entity shows an active status. This means that the said name is not available. Now, if you change the name to “Carbutti Realtors INC.”, and conduct the entity name search again then it will show availability of the said name.

Naming your Connecticut LLC

If you have made a decision to start a limited liability company in Connecticut ,then the first step would be to choose an appropriate business name. The chosen name will be the primary form of identification of the LLC during formation, when applying for licenses, while paying taxes, and for filing annual reports. This name will also be used for marketing and branding activities. Choosing the right name is an entirely time-consuming process in itself and may require you to research and reject, and research again. Once you have identified a good or relevant name for your business, conduct a Connecticut LLC name search. This will reveal whether this name can be reserved with the state or not. There are important factors to consider when naming your limited liability company, as outlined below.

General LLC naming rules

It is imperative to follow Connecticut business name rules and guidelines for an LLC. If you don’t adhere to these laws, then it may lead to the cancellation of the said name. The naming of your limited-liability company is governed by the 2024 Connecticut General Statutes, Title 34, Chapter 613a – Uniform Limited Liability Company Act. The general rules for an LLC name are:

• The name of your limited liability company must contain any of these words: “limited liability company” or any of these abbreviations: “L.L.C.” or “LLC”. It is important to note that “Limited” may be abbreviated as “Ltd.”, and “company” may be abbreviated as “Co.”.
• The chosen name should be distinguishable from the name of any other entity on the records of the Secretary of State, such as any domestic or foreign limited liability company. You can check for distinguishability by conducting a Connecticut LLC name search.
• The chosen name should also be distinguishable from the name of any domestic or foreign corporation, limited liability partnership, or limited partnership pursuant to CT Gen Stat § 34-243k (2024).
• The Connecticut business name rules also state that the name of a domestic or foreign LLC should not contain any language or words that imply or state that such a company is organized for a purpose other than those permitted by subsection (b) of section 34-243h.

If you follow the state naming guidelines for entity names, then it will not only help you to conduct a Connecticut LLC name search properly but also ensure your chosen name can be easily reserved with the office of the Secretary of State.

Search LLC name availability on the Connecticut Secretary of State’s website

Once you have identified a name that is in compliance with the state laws, the next step is to conduct a Connecticut business entity search or name availability search. The CT Secretary of State’s website offers a simple online search option for this. Let’s look at how this search is conducted.

Business records search by name or keywords

This is the only method for conducting a Connecticut LLC name search. You can search for a company name that starts with a specific word or phrase. You can conduct this search with or without a designator, such as LLC. You need to choose the ‘All Business Services’ column. This Connecticut business name availability search will reveal all forms of entities and their existing status, such as active or dissolved. Let’s look at an example to understand this process.

Example: You want to form an LLC in Connecticut that provides mechanical and electrical solutions. It’s a consultancy registered out of Middletown, CT. Your chosen name is ‘Collective Design Associates’. Now you provide this exact name or a part of the name in the ‘Business records search’ option. The Connecticut business name availability search reveals that a company with the same name is operating out of Westport, CT. It shows an active status, which means you cannot use the same name. In such a scenario, you will need to make slight adjustments to the name. You can change it to ‘Collective Engineering Associates’ and conduct Connecticut LLC name search again. The said name is available. Now you can easily reserve this name with the CT Secretary of State.

If your chosen LLC name is available, then you can file the “Application for Reservation of Name” (Form BUS-002) with the Secretary of the State of Connecticut pursuant to CT Gen Stat § 34-243l. (2024). There is a filing fee of $60.

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Naming your Connecticut Corporation

There are different entity structures that you can form in the state of Connecticut. One of the most popular structures is that of a traditional corporation, also known as a C-Corp. If you are planning to establish a corporation, then the first step is to choose a corporate name. You will need to follow Connecticut business name rules and guidelines as governed by the 2024 Connecticut General Statutes, Title 33 – Corporations, Chapter 601 – Business Corporations Section 33-655. – Corporate name. This will be followed by conducting a Connecticut Corporation name search. This search will ensure the chosen name is available for reservation. Let’s look at the various aspects to consider when naming your new company.

General Corporation naming rules

The Connecticut business name rules and guidelines vary depending on the entity type. The guidelines for a corporation will differ from those for a limited liability company (LLC) or a Partnership. It is important to follow the state business name rules and regulations, as this will minimize the risk of your chosen business name getting rejected. It is also necessary to conduct a Connecticut Corporation name search. This will help you check if your chosen name is available for reservation or not. The general corporate name guidelines and rules are:

• If you are planning to incorporate in the state of Connecticut, then your chosen name should contain words like the word “corporation”, “incorporated”, and “company, Societa per Azioni “or” limited. The name may also contain abbreviations like “corp.”, “inc.”, “co.”, “S.p.A.” or “ltd.,” pursuant to CT Gen Stat § 33-655. (2024).
• The law states that the chosen corporate name should be distinguishable upon the records of the Secretary of the State. It should be distinguishable from the names of other domestic or foreign stock and non-stock corporations, nonprofit corporations, domestic or foreign limited partnerships, limited liability companies, and limited liability partnerships.
• You should also check the list of restricted words, especially those associated with specific professions or industries like banking or insurance.

Search the Corporation name availability on the Connecticut Secretary of State’s website

Once you have finalized a name for your corporation, the next step is to conduct a Connecticut Corporation name search. The website of the CT Secretary of State offers you access to conduct this type of search. You can conduct the search for both domestic and foreign corporations. Let’s look at how a corporate name search is conducted.

Business records search for Corporate Name

This is the only option available for conducting a Connecticut business entity search. It is a fairly simple process and can be carried out using a specific name, full name, or abbreviation. You can conduct this search with or without using an appropriate designator like Inc. or Corp. The Connecticut Corporation name search will bring out a list of names that are either the same as your company name or similar. This list will include names of entities that are active or dissolved. Let’s look at an example to understand this process.

Example: You want to start a corporation in Connecticut that will provide AI consulting services and offer custom-tailored solutions. Your chosen name is Quartus Technology, and it is based out of Groton, CT. You can conduct a Connecticut business name availability search by using the full name or a part of the name, like “Quartus” or “Quartus Tech.” The results will reveal that such a name is already being used by another Corporation based out of Westport, CT. Hence, you cannot reserve this name. You can change the name completely or modify the same name. You can modify it to “Quartus Tech solutions” and conduct the Connecticut Corporation name search again. This time, the search reveals no such name registered with the state. This means your modified corporate name is available.

Need any Assistance in a Connecticut Business Name Search?

The process of Connecticut business name search for an LLC or a corporation is an important process. If you bypass this process and try to reserve your company name, then there is a high probability of the name getting rejected or denied reservation. Hence, it’s important to not only choose the name based on state laws but also conduct a business name search. IncParadise can also help you to conduct this search properly and quickly.

We are one of the leading business formation service providers in Connecticut and provide a host of services, from helping with Connecticut business entity search to registering a new company. You can take advantage of our additional services that will help you to comply with Connecticut’s annual requirements.