State Processing Fees and Times
Wondering what the processing time and fees are for starting a Connecticut corporation? We have a list of the average wait times for both expedited and standard filings.
Connecticut charges a corporation filing fee. Visit "Compare Pricing" in our incorporation center to see all state fees for Connecticut.
Deciding Between a Connecticut S Corp and a C Corp Tax Designation
- 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 IRS Form 2553 to elect S Corp status.
Every state has its own personnel requirements for incorporating. In Connecticut, they include the following:
- Age requirement: incorporators must be at least 18 years old.
- Number of incorporators: Corporations can have one or more incorporators.
- Residency: A registered agent must be either a person with a Connecticut residence, or a Connecticut corporation or business entity.
Other Requirements for Your Certificate of Incorporation
In addition to personnel requirements, your Connecticut Certificate of Incorporation must also address the following issues.
Every corporation should appoint a registered agent. A registered agent is the person or business responsible for receiving tax, legal and government documents for your corporation during regular business hours. Every corporation needs one. In Connecticut, your agent must be named in your Certificate of Incorporation, and must have an address in the state.. We can help you designate your registered agent when you incorporate with us.
You must also include the following in your Certificate of Incorporation in Connecticut:
- The name of the company.
- The name and address of the person filing the Certificate of Incorporation.
- The total number of stock shares authorized per class of stock issued.
- The terms, limitations, rights and preferences of each class of shares.
- The name, business and residence address of the corporation's registered agent.
- The agent's signature accepting the appointment as agent.
- The name, address and signature of each incorporator.
Guidelines for Your Name
Your corporation's name is how it will be known to the world. Connecticut has a few 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.
Connecticut Corporate Taxes and Reports
Connecticut requires that corporations file an annual or biennial report. The initial report must be filed within 30 days of the corporation's first shareholder meeting.
Although it's not the most enjoyable part of owning a business, you must pay taxes for your new corporation. Before you start doing business, apply to the IRS for an EIN, an employer identification number. An EIN is the equivalent of your company's Social Security number. We have more information about the tax structures and obligations of both C Corps and S Corps.
Corporate Record Keeping and Filing Requirements
Connecticut requires that corporations create corporate records, such as bylaws and meeting 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 meeting minutes.
Starting a new corporation is exciting. We wish you success and prosperity in your new venture, and we have all the legal documents, filing and tax information you'll need to get started.
This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.