How to start a Connecticut corporation

It might seem like a lot at first, but once you understand the steps, it’s very doable. This guide will walk you through everything you need to know to start your Connecticut corporation.

How to start a corporation in Connecticut 

Incorporating means registering your business as a corporation so the law sees it as its own entity, separate from you. Each state has its own rules for how to do this, so the process can seem confusing. Let’s go through each step: 

1. Choose a name for your Connecticut corporation

Your corporation’s name should be unique and make a statement about your business. Make sure it complies with the following Connecticut requirements:

• Your company name must include "Corporation," "Incorporated," "Company," or the abbreviations "Corp.," "Inc.," or "Co."
• Your name must be distinguishable from all other business names on file with the Connecticut Secretary of State.

Need help coming up with a business name for your corporation? Try the Rocket Copilot™ AI Business Name Generator, a free tool to help you brainstorm business names and get started registering your corporation.

2. Decide between a Connecticut S-Corp and C-Corp tax designation

There are similarities between a Connecticut S-Corp and a C-Corp regarding personal liability, management, structure, and compliance. The differences, however, come down to the following:

• Ownership Rules: Connecticut S-Corps cannot have more than 100 shareholders. The shareholders cannot be other corporations, business entities, or non-resident aliens. No such restrictions apply to C-Corps.
• Taxes: Connecticut C-Corps pay a state corporate tax. They must file Form REG-1, a Business Taxes Registration Application, to register for the corporate business tax. C-Corps must also file a Connecticut corporation business tax return following the end of the corporation's taxable year. S-Corps are not subject to corporation business tax. The shareholders of an S-Corp report corporate income on their personal tax returns. However, S-Corps must file a Connecticut composite income tax return because they may be required to make composite tax payments for non-resident corporate members.
• Documents: An S-Corp must file the IRS Form 2553 to elect S-Corp status.

3. Appoint directors and shareholders for your Connecticut corporation

Each state has its own personnel requirements for incorporating. In Connecticut, corporations can have one or more incorporators, but all incorporators must be at least 18 years old. All incorporators must be named in your Certificate of Incorporation.

4. Choose a Registered Agent

A Registered Agent is the person or business responsible for receiving tax, legal, and government documents during regular business hours. It's important that every business has one. You can either serve as your own registered agent (if you have a Connecticut address) or choose one to do that service for you (if you are not located in Connecticut or would like an extra layer of privacy).

5. File your Certificate of Incorporation with the state of Connecticut

Once you have a business name and registered agent, you can register your business as a Connecticut corporation with the state by filing your Certificate of Incorporation. This document may be referred to informally as a corporation's "Articles," or in other states, it may be called a "Certificate of Organization," "Certificate of Filing," or "Certificate of Formation."

6. Get an Employer Identification Number (EIN)

Before opening your doors for business, apply to the IRS for an employer identification number, or EIN. All corporations with employees in Connecticut must have an EIN. An EIN is similar to your Social Security number, but it's for businesses. You'll also need an EIN to open your corporate bank account.

Congratulations! After you have completed all these steps, you have formed your Connecticut corporation.

What to do after incorporating in Connecticut

Connecticut requires that corporations create Corporate Records, such as Bylaws and Corporate Minutes, to maintain their corporate status. It’s recommended that you keep these documents even when they're not required by the state. They help protect the legality of your corporate status. We have more detailed information about Connecticut's requirements for Bylaws and Corporate Minutes.

Still have questions? Learn more about how to start your own business with Rocket Lawyer and get started today!
 

Key takeaways Starting a corporation in Connecticut means following state rules, like choosing a unique name, filling out paperwork, and paying fees to make it official. One important choice is deciding how your corporation will be taxed in Connecticut, either as an S-Corp or a C-Corp. This affects how the business and owners pay taxes, and the differences between the two change from state to state. After forming the corporation, you have to keep records like bylaws and meeting notes to stay in good standing with the state and prove your business is real and operating correctly.

Additional resources

Learning how to enforce a contract is just one step. Explore these additional topics to learn more and take the next steps.

• What is a corporation?
• What is an S-corporation?
• How are corporations taxed?
• How to start a corporation
• How to register a corporation by state