Connecticut Business Facts
In size Connecticut is the third-smallest state in the US, but this little powerhouse has a lot to offer when it comes to business. Strategically located near major markets such as New York City and Boston, Connecticut entrepreneurs also operate alongside the wealthiest population in the nation. Connecticut offers a highly-educated labor pool and ranks third in the United States for quality of life, with its many cities ranging from cosmopolitan urban centers to quaint small towns that still retain their colonial heritage since the state’s foundation in 1788.
Major Companies in Connecticut
Major Companies headquartered in Connecticut include Aetna, Starwood Hotels & Resorts, Subway and United Technologies.
Startup Environment
White 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 always change it later but the less times you have to do that, the better). 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 you 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 on 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
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.
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.
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 preferred provider of business insurance online.
Prepare the business as if someone needed to take it over and run it for you. This means have a method to process orders, pay bills, pay employees, pay taxes, maintain 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 company 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 $20. 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.
Connecticut Secretary of State
Business Services (for Corporation and LLC filings)
30 Trinity Street
Hartford CT, 06106
Phone: 860-509-6200
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
Angel.co Connecticut Startups
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
IMPORTANT: We are open and have resources for small businesses to get help with Covid19! |