Incorporate in Connecticut

The major industries of the “Constitution State”” include agriculture, manufacturing and insurance.

One of the 13 original colonies, Connecticut is considered an elite and beautiful state, home to some of the finest universities and wealthiest residents of the United States.

Benefits of incorporating in Connecticut:

Protection of personal assets

One of the major benefits of incorporating is protection of personal assets. Forming either a C corporation or a limited liability company gives owners the advantage of separating and protecting personal assets from business debts and liabilities in the event of a lawsuit or other claims against the company.

Enhanced credibility

While many offshore entrepreneurs decide to act as sole proprietors, when you do business as a corporation or a limited liability company you gain in credibility. Potential consumers, vendors or investors view corporations and llcs with more confidence. Potential customers will fell less anxious doing business with company in a US jurisdiction. Other American businesses will be eager to partner with a C-Corp or an LLC that is domiciled in an American state.

Ability to Open a US Business Bank Account

Forming a company is the first step for a non US resident to open a bank account. A US bank account gives businesses access to a debit card, and the potential to open a merchant service account. Internet commerce is made much easier with a US bank account because companies like PayPal, Amazon and EBay considered you more qualified as a vendor.

Your corporate name can boost your brand

Connecticut requires that a C corporation or an LLC must have a name that is distinguishable from a business already in existence. To make sure your business name is eligible Inc. Plan can help you choose a unique C-Corp or LLC name. A unique corporate name enhances your company’s reputation and also helps protect the identity of your brand.

Tax flexibility and benefits

Although, Connecticut is one of the few American states that require a franchise tax, incorporating a small business comes with several tax advantages, depending on the type of company you wish to form. For example a C corporation can retain profit and loss and an llc may choose several tax options.

Residency Requirements

Connecticut does not have a residency requirement for owners and directors of Connecticut companies. Owners and directors do not need a physical address within the state. However, before your firm is authorized to do business, make sure you possess all the required business licenses, permits, and tax registrations. If you need help, Inc. Plan can guide you through the complexities.

Other incorporating requirements

Both C-Corps and LLCs must have one or more members and is important for the company to own business licenses in order to be legally eligible. No age restrictions are imposed.

Requirements for forming an LLC in Connecticut:

When forming a Limited Liability Company certain steps must be taken on an ongoing basis to keep the business in compliance.

Name requirements for LLCs

Similar to C-Corps, limited liability companies must have unique names ending with “Limited liability corporation”. Also, it may use abbreviations like “LLC” or “L.L.C”. New LLCs cannot select names that could easily be confused with businesses already in existence.

LLC filing requirements

If you decide to form a Limited Liability Corporation in Connecticut, than you should be aware that the formation document is called the Articles of Organization.

Required information for the Articles of Organization

LLC owners will have to provide the name and address of their registered agent. The RA must own a physical Connecticut address and should be available to receive important legal and financial correspondence. Furthermore, the names and addresses of members and managers of the company are required to be listed in the Articles of Organization.

LLC taxes and fees

LLCs must file an annual report for $20 per year. The annual report is due on the company’s anniversary date. A Federal tax identification number (EIN) is a required for limited liability firms which plan to have employees.

Requirements for forming a C corporation in Connecticut:

Each state has its own requirements regarding company formation. Here are the most important requirements for corporations formed in Connecticut.

Name requirements for C corporations

The state of Connecticut requires companies that register C corporations using a name that consists of numbers and English letters. The business name must contain the following words: “Corporation”, “Company”, “Incorporated”, or “Limited.” Also, the abbreviations: “Corp.”, “Inc.”, “Co.”, “Ltd.” New companies can not take the name of companies already in existence.

Filing requirements in Connecticut

A Corporation is formed in Connecticut by submitting a Certificate of Incorporation to the office of the Secretary of State. Connecticut law requires filing the corporation’s organizational meeting of the initial report within 30 days of the date of incorporation.

Required information for the Certificate of Incorporation

Connecticut’s Certificate of Incorporation requires a listing of authorized shares and par value. Moreover, the document requires a listing of a registered agent with a physical address (not post office box) in Connecticut. Inc. Plan (USA) can complete all the necessary filings for you and also provide qualified registered agent service.

Taxes and fees requirements

Connecticut is one of the few American states that require a franchise tax fee calculated on the number of authorized shares. The minimum franchise tax fee is $150. Also, a $150 fee is necessary for the filing of the company’s annual report. The state requires a federal tax identification number (EIN) for companies hiring employees. Additionally, the state charges Corporate Tax (7.50%) and a Personal Income Tax (3%-5%).

If you are ready to get started you can fill out our application or call 1-302-428-1200 for a Free 30 Minute Live Consultation.

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