How to Create an LLC in Connecticut – Forbes Advisor

Once you have completed the process of establishing your Connecticut LLC, you can now focus on running your business and keeping it in good standing. The following sections contain tips to help you sustain your business for the long term.

Get an Employer Identification Number (EIN)

An EIN is sometimes called a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN). EINs are required for most businesses; Sole proprietorships without employees are an exception, as owners can choose to use their social security number (SSN) instead. Even so, EINs are preferable to protect one’s SSN from identity theft and maintain privacy. You can quickly obtain your LLC’s EIN at the IRS website.

Create an operating agreement for your LLC

Creating an operating agreement for your Connecticut LLC isn’t legally required, but it’s still a great idea. These internal documents determine the functioning of the company. An operating agreement not only defines members’ responsibilities and capital contributions, but it can also be crucial in deciding everything from members’ voting power to how the LLC is dissolved.

An operating agreement is also beneficial in the event of disagreements between members and confusion over individual financial obligations.

Buy a web domain and set up social media

Many potential customers enjoy researching companies or products online. While you don’t have to have a website and social media profile, investing in an online presence is still a great idea. Register a domain name and establish social media accounts right away, so you’ll have the names you want when you’re ready to start using them.

Submit an annual report

After creating an LLC in Connecticut, you are responsible for keeping your information up to date by filing annual returns. Please note that no financial information will be requested. The current filing fee is $80 for domestic and foreign entities. You must file your return online unless you obtain an exemption allowing you to file by mail.

pay your taxes

An LLC can be treated as a sole proprietorship, partnership, S-corporation or C-corporation for tax purposes. LLCs that are taxed as partnerships or S-corps must pay a 6.99% Connecticut flow-through entity tax. However, the tax can be offset by a personal income tax credit.

An LLC taxed as a C-corporation is subject to 7.5% corporate income tax in Connecticut.

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