Connecticut Business Facts
The state of Connecticut has long maintained its reputation for welcoming ingenuity and innovation. Since her beginning in Colonial times, Connecticut has held to its roots in manufacturing and leading the world in industrial development. The Constitution State gained a reputation for being the nation’s arsenal as early as the American Revolution when Eli Whitney and Simeon North began crafting firearms with interchangeable parts. This move led to the beginning of modern mass production.
Connecticut is also known for vulcanized rubber, friction matches, sewing machines, steamboats, safety fuses, lollipops, corkscrews, mechanical calculators, cylindrical locks, and the submarine.
While agriculture has dropped off from its one-time leading industry, it’s still an important and productive one. Tobacco, nursery vegetation, dairy, and produce are still top performers in Connecticut.
Major Companies in Connecticut
The Constitution State is home to a variety of major corporations. At the top of the list are United Technologies, XPO Logistics, Otis Elevator Company, Stanley Black & Decker, Aetna, Cigna, Carrier, and Xerox.
While Connecticut does offer its entrepreneurs a dynamic market and a qualified workforce, Connecticut small business owners face a high tax burden, elevated labor costs, and expensive real estate.
Steps on How to Start a Business in Connecticut
Before starting a business in Connecticut, you will need to follow these important steps.
There are 3 basic options: a DBA, a Corporation, or an LLC. Click here to learn more about business entities.
Choosing a business name is easier said than done – many legal and business problems can arise from choosing the wrong name (you can change it later, but it’s a better practice to go with your original name). In Step 3 we’ll show you how to search for the name in Connecticut, but we highly recommend you do the following before searching Connecticut state databases:
TIP: search misspellings, plurals, variations of spelling, sound-alikes, and other versions of your chosen name to be sure it’s not already registered.
NOTE: Every state has naming guidelines. Connecticut LLC entity names need to contain the words “Limited Liability Company” or the abbreviations “LLC” or “L.L.C.” The word “Limited” can be abbreviated to “Ltd.” and “Company” as “Co.” Certain words are restricted or prohibited.
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Connecticut.
How to form an LLC in Connecticut
How to Incorporate in Connecticut
Considerations when incorporating or forming an LLC in Connecticut
The Connecticut Secretary of State takes 4-5 business days to process your filing. Rush filing will take 1-2 days.
TIP: Check our order form to see how long Connecticut is currently taking to process regular and expedited orders.
How to File a DBA in Connecticut
Connecticut trade names need to be registered with the town in which the business is conducted. You will need to research your proposed trade name with your Town Clerk and submit the appropriate form or certificate. You can locate your Town Clerk by searching for “Town Clerk of YOURTOWN Connecticut.”
Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
TIP: We will obtain your EIN for you if we form your company.
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire about the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN, and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Some Major Banks in Connecticut include Liberty Bank, Webster Bank, United Bank, Farmington Bank and Savings Institute Bank and Trust Company.
Click here to view a list of our recommended banks in our Vendor Network.
TIP: Our business formation service includes a free banking resolution for your use.
Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.
Company documents generally are required to be kept for 3 years, including a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.
Review our list of Accountants, Accounting Software, and Bookkeepers in our Vendor Network.
Now that you’ve registered your business name you may need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process). Connecticut’s state website has helpful information about obtaining a business license.
TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.
Review our list of recommended Payroll Providers in our Vendor Network.
There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.
Click here to view our list of insurance providers in our Vendor Network.
Prepare the business as if someone needed to take it over and run it for you. This means your business needs a process for fulfilling orders, paying bills, employees, taxes, maintaining your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.
Now that you’ve set up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.
DBA: Your Connecticut Trade Name should be valid for 5 years (unless you change your company’s name or other information) at which point you’ll need to renew it with your Town Clerk.
LLC: Connecticut LLCs are required to file an annual report every year between January 1 and March 31. The filing fee is $80. You can file your annual report online.
Corporation: Every Connecticut Corporation must file an annual report by the end of the anniversary month that your corporation was filed. The filing fee is $150. You can file your annual report online.
Click here to view our MyCompanyWorks Premium™ service which can automate most of your ongoing compliance tasks.
Connecticut Secretary of State
Business Services (for Corporation and LLC filings)
30 Trinity Street
Hartford CT, 06106
Connecticut Taxation Departments
Connecticut Labor and Employment Departments
Connecticut Startup Resources
Small Business Administration (SBA)
Connecticut Legal Statutes
Connecticut Chambers of Commerce
Connecticut Business Portal
Connecticut Angel Investors
Connecticut Business News
Connecticut Department of Economic and Community Development
The Connecticut Small Business Development Center (CTSBDC) offers expert assistance at no cost to entrepreneurs and small business owners.
Connecticut Green Business Program
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