Let’s be honest, it can be an uphill fight for you to start a business in Connecticut. And the way to achieve prosperity of an undertaking will be thorny, but it’s worth all the efforts! Your business will help to boost Connecticut’s economy, also help your family, friends and fellow citizens to achieve a high living standard. You’ll get a lot of benefits from being a businessman, like flexible working time, no fear of being quitted, income depending on your activity, etc. All you need to become an entrepreneur is an idea, your enthusiasm, and obtaining all required licenses and permits for business in Connecticut.
Legal structure business Connecticut
The first decision of great importance you have to make as a businessman is to choose a legal business structure. The structure of your company’s management, the type of liability and how much taxes you will be billed— all of this depends on this choice. There are four options for you to choose:
- An LLC. This is a popular legal structure in Connecticut that offers attractive conditions for taxation and liability. To register your business as an LLC you have to file Articles of Organization, pay the filing fee with the Connecticut Secretary of State, and arrange a registered agent. A Registered Agent is an individual or a company that gives you a consent of receiving documents in the name of your enterprise.
- Corporations. There are B-Corps, C-Corps and S-Corp Most Connecticut’s entrepreneurs choose C-Corps as the legal structure for their businesses because of an individual tax entity and limited liability. To become a corporation you need to agree with a registered agent, fill out a form of a Certificate of Incorporation, pay the fee to the Connecticut Secretary of State.
- Limited Liability Partnerships. This type of legal structures frequently used by Connecticut’s real estate holdings and particular groups of professionals. To register a partnership you have to fill out a Certificate of Limited Liability Partnership, find a statutory agent, and pay the fee to the Connecticut Secretary of State.
- Sole Proprietorships. This is not a separate entity commonly used by individuals and partners.You mustn’t do any paperwork to incorporate as a sole proprietorship in Connecticut. However, you should know that sole proprietorship does not protect your individual liability. The only thing you have to do here is to file a DBA — “Doing Business As”.
License business Connecticut
To protect your liability and run your business legally you must have all licenses and permits needed for your business, although some companies don’t need any license. In Connecticut, there are two classes of licenses and permits: professional/ occupational and regulatory/ trade. To find what licenses and permits your business needs in Connecticut check out the Smart Start for the Business section of the CBRC website, where you can search by issuing agency, or trade area, or some other ways.
It is worth noting, some cities and counties in Connecticut like, for example, the Hartford city, require local licenses. To get to know more details about the local registrations visit your city/ county official website.