A Connecticut Limited Liability Company (LLC) acts as a hybrid type of business that combines elements of a partnership with that of a corporation. Connecticut LLCs appear as a separate legal entity from the owners (known as members) of the business. Members of a Connecticut LLC have the ability to pass their share of company profits to an individual or joint tax return. Furthermore, members of a Connecticut LLC enjoy flexibility in terms of management structure and distribution of company profits.
Choose a name for the LLC. As mentioned on the American Incorporators website, a Connecticut LLC must have a different business name from that of any other registered business, or business name held on reserve in the state of Connecticut. Furthermore, the state of Connecticut requires an LLC name to include the words "limited liability company," or the appropriate abbreviation. Conduct a name availability search at the Connecticut Secretary of State's office to ensure a business name is available for use.
File articles of organization with the Connecticut Secretary of State's office. According to the Legalzoom website, the Connecticut articles of organization must state the name and address of the LLC, and the management structure of the LLC. Furthermore, a Connecticut LLC must provide the name and address of a registered agent. A registered agent must be a person, 18 years or older, or business with a physical address in the state of Connecticut. The resident agent agrees to accept service of process and other legal documents on behalf of the LLC.
Create a written operating agreement. The state of Connecticut doesn't require an LLC to file an operating agreement with the Secretary of State. However, creating a written operating agreement will help settle disputes that may arise during the course of running the business. For example, an operating agreement should contain information regarding voting rights of members, distribution of profits, ownership interests of LLC members and the process by which new members may join the LLC. The operating agreement should be kept at the location where the LLC operates.
Apply for an employer identification number (EIN) by contacting the IRS. The IRS accepts EIN applications by mail, phone, fax or online submission. Online and phone correspondence allows the IRS to issue the LLC an EIN for immediate use. Faxing Form SS-4 will result in receiving an EIN in 4 business days, as long as a return fax number appears on the original EIN inquiry. Sending Form SS-4 by mail may take up to 4 weeks before the IRS issues an EIN.
Obtain the proper permits and licenses to legally operate the LLC. The state of Connecticut requires all businesses to obtain a general business license. Beyond that, the permits and licenses needed to operate the business will vary depending on the nature of the business. For example, a home-based LLC in Connecticut will need a general business license. However, a Connecticut LLC involved in retail computer sales may be required to obtain a sales and use tax license, as well as a seller's permit. Check with the city clerk's office in the county where the Connecticut LLC operates. This allows members of the LLC to determine what licenses and permits are necessary to legally conduct business in the state of Connecticut.