Anyone who has done any research into the process of starting a Limited Liability Company understands it is both time-consuming and difficult. However, many would-be business owners fail to factor in the time it takes for the government to complete paperwork and register an LLC. How long does it take to get an LLC in Connecticut? In this guide, we will address any of the questions you may have about the formation time frames in the state of Connecticut.
Discovering Connecticut
The first European settlement in Connecticut was founded in 1633, so it has a long history. It’s a very hilly, forested state, and it’s home to the Connecticut river. Some of its natural resources include lumber and firewood, as well as maple syrup, thanks to all of the forests and trees.
Economic Overview of Connecticut
Connecticut reported a GSP (Gross State Product) of $252.8 billion in 2023, and between 2018 and 2023 it had a growth rate of 19% on GSP. The top industries in the state by revenue are Life Insurance and Annuities, Gasoline and Petroleum Bulk Stations, Health and Medical Insurance, Aircraft, Engine and Parts Manufacturing, and Reinsurance Carriers. The companies that employ the most people in Connecticut are Hartford HealthCare, Raytheon, Amazon.com, Yale New Haven Health, and the Saint Francis Health System. And the sectors that are growing and driving the state’s economy are Finance and Insurance, Manufacturing, Real Estate and Rental Leasing, Healthcare and Social Assistance, and Information.
Business Environment In Connecticut
A recent study by WalletHub recently rated Connecticut as 49th best business environment, making it the 2nd worst on the list. Some of the factors considered in the study were the length of an average work week in the state, five-year survival rates for businesses, the percentage of citizens that are fully vaccinated, and cost of living.
It ranked #16 on USnews.com’s ranking of the best states. That includes a #6 rank for business environment and #18 in growth. But it got 30th place for employment. Long-term fiscal stability for the state was rated #48, and higher education was rated #47. And under the “Opportunity” category, it scored a #42 under affordability, 19 under Economic Opportunity, and 27 under Equality.
According to a survey from CBIA, 81% of business owners say it’s hard to find and keep employees in the state, 46% of business executives said it’s hard to find qualified applicants, 91% said the business costs in Connecticut are rising with 25% citing rising labor costs and 16% citing taxes as the driving forces of increased costs. 83% of business owners say they’re feeling the sting of inflation. And a mere 10% of business owners said they think the business environment in the state is improving- 41% say it hasn’t changed and 33% said it’s getting worse.
State-Specific Regulations and Incentives for Forming an LLC in Connecticut
Here are some of the regulations, incentives and grants that are available for new business owners in Connecticut.
- Black Business Alliance (BBA): This is a program that provides technical aid, business coaching and financial assistance for business owners in Connecticut. 20 grants (up to $15,000) are to be awarded each year (it’s a 5-year program). The businesses that qualify are already using technical assistance services from the BBA, and minorities, disabled, veterans or women-owned businesses are given priority.
- Girls for Technology (GFT)/Society of Human Engagement and Business Alignment (SHEBA): This 5-year program provides training, consultation, planning, technical support, advertisement and business acceleration for 20 small business owners per year, with services ongoing for 6 months. Again, minorities, women, disabled and veteran-owned businesses get priority.
- Social Enterprise Trust, Inc. (reSET) in Greater Hartford: This is a program to help business owners in the Greater Hartford area who want to develop or scale a food business, which can include food service or products. Not only do they help you with things like setting the business up and learning how to market it, it comes with grants between $500-$2,000 and peer-to-peer interaction, lectures and mentorship from experts, and content delivery.
- Southeastern Connecticut Enterprise Region Corporation (SeCTer): This program supplies grants between $500-$2,000 to both existing and startup businesses in southeastern Connecticut, as well as technical assistance. Some of the workshops include pitch events, business fundamentals, and business planning competitions.
- Small Business Boost: This is a program for small businesses that provides loans of $5,000-$500,000 with a fixed 4.5% interest rate for business owners who have less than 100 employees and have been in operation for at least 12 months.
There are numerous other grants provided by the state. You can check out the CT.gov website for more information about grants. There are also a load of tax incentives. The Department of Economic and Community Development’s Office of Small Business Affairs recommends that you contact them to assess which programs your business qualifies for, and you can find their contact information here.
Pros and Cons of Establishing an LLC in Connecticut
If you’re in the manufacturing or healthcare industries, then Connecticut may be a good place to set up shop because those industries are really thriving in the state. And if you process lumber or maple syrup, then you may consider Connecticut because of its abundance of forests.
The drawbacks to forming an LLC in Connecticut are the difficulties in finding and retaining employees, the lack of qualified applicants due to the low rate of citizens with higher education, the high business costs in the state and the lack of noticeable change to the business environment.
Procedure of Establishing an LLC in Connecticut
If you want to know how long it takes to create an LLC in Connecticut, you need to first familiarize yourself with the state's LLC formation procedure. In this part of the guide, I'll break down every step so you have a more detailed understanding of the time it takes to form an LLC.
Necessary Documentation for Filing an LLC in Connecticut
The time it takes to get a Connecticut LLC may be affected by factors beyond your control, so you should get ready ahead of time by gathering the required documents so you can at least get everything on your end accomplished speedily. You need an Employer Identification Number (EIN), which is available for free from the IRS for your company. You must submit an application to the Secretary of State to reserve a name for your business, which will cost you $60. You'll need to get your LLC's Certificate of Organization, which can be purchased for $120 from the Secretary of State. An LLC Operating Agreement is also recommended. Connecticut law may not require one, but you should still draft one because it's a valuable internal document. You'll also need an initial report from the Secretary of State's office. There are a number of taxes for which you'll need to file an application; you can do so with the state of Connecticut's Department of Revenue, but you should also research any applicable local taxes. A state business license is required, and you may also need one from the local government.
Legal Requirements For Starting An LLC In Connecticut
Here's how to set up a Limited Liability Company in Connecticut.
- Obtain Certificate of Organization: The Certificate of Organization is required before an LLC can be formed in the State of Colorado. Obtaining this form is the first step in forming your LLC. You can acquire the form from the Connecticut Secretary of State.
- Pick A Name For Your Business: It may seem like an easy thing to do, but laws in the state of Connecticut state that your business name has to be unique. You can't use the name if it's already taken by another business in the state, or if it sounds too much like the name of another company. To see if the business name you want is already taken, run a business name availability search on the Connecticut Secretary of State website.
- Decide on a Registered Agent: It is against the law in Connecticut to form an LLC without naming a registered agent. You honestly can't even fill out the forms properly without listing your registered agent's information. Registered agents are people who receive government mail and service of process for your business, but not regular mail. You can choose a registered agent business or a person, like a family member or a co-worker.
- Choose Your Business Address with Caution: Because other companies, the government, consumers, and attorneys need to be able to access your business's address, it is public information. As a result, many business owners prefer not to use their home addresses. After all, you don't want everyone discovering where you live and possibly showing up there. Therefore, you should give some consideration to your business address. For reasons related to privacy, several states allow companies to set up a virtual office or virtual address.
- File the Company's Certificate of Organization: The last step is to file your Certificate of Organization. But first, you'll need to decide on who's going to sign the Certificate. A lot of LLC owners sign it themselves, but if you do this, your name and information will become public record. To prevent this, have a friend, employee, or LLC formation service sign and submit the Certificate of Organization on your behalf.
In addition to all of this, your LLC is required to file an Annual Report with the Secretary of State for $80, and you're required to name a registered agent on your Certificate of Organization. For more information about the post-formation responsibilities you'll have to tackle, read How to Start a Connecticut LLC.
Time Frame For Establishing An LLC In Connecticut
Now comes the portion of the guide that you're most likely to enjoy! We'll provide you with all the information and answers to the question, “How long does it take to get an LLC in Connecticut?”
How Long Does The Initial Paperwork Take In The State Of Connecticut?
The standard approval time to form an LLC in Connecticut is between 3-4 weeks for mail filing and 7-10 business days for online filing.
Processing Times In The State Of Connecticut
Processing times and approval times are different things.
Processing time is the amount of time it takes for your paperwork to be received, reviewed, and entered into the state’s database. Approval time is the time it takes to get approval for your Limited Liability Company, which includes processing time.
Processing time for mail LLC filing in Connecticut is between 7-10 days, and it’s 2-3 days for online LLC filing.
Common Delays In The LLC Formation Process In Connecticut
Here’s a look at some of the potential roadblocks that can prevent your Limited Liability Company from being formed in a timely manner.
- Improperly filling out paperwork, like your LLC Operating Agreement or Certificate of Organization.
- The Secretary of State could have a filing backlog that they have to work through before getting to your submission, which could take some time.
- State holidays could cause a delay in processing.
- If you don’t set your LLC up properly with tax authorities (like the Internal Revenue Service, or IRS), then it could result in delays.
- If your Operating Agreement is complicated or your business structure is complicated, it could take the Secretary of State longer to review your documents.
Expedited Processing For LLC Formation in Connecticut
Some states provide expedited processing for discerning business owners who need to form an LLC quickly. Here’s what you need to know about expedited processing in Connecticut.
What Are The Expedited Options Available?
Connecticut offers 24-hour expedited processing. If you’re filing through mail and choose the expedited option, then it’s worth it to use overnight mail.
Additional Costs For Expedited Services In Connecticut
There are almost always additional costs for expedited processing services, and that’s no different in the state of Connecticut. If you want expedited processing, there’s a $50 fee, on top of the standard LLC filing fee.
Comparing LLC Formation Time Frame In Connecticut With Other States
Maybe you’re considering a handful of states as potential locations for your organization. Even if you aren’t considering other states, comparing formation times of other states will put Connecticut’s formation time frame into perspective.
Brief Comparison With Key States
In Connecticut, processing time for mail filing is 7-10 days, 2-3 days for online filing, and 24 hours for expedited processing.
There are places with far slower processing times, even for expedited processing. In Maryland, expedited processing can take 7 days, online filing can take 2 weeks, and mail filing can take 5-8 weeks.
In contrast, Nevada, West Virginia, Montana, Delaware and Michigan all have expedited processing in as little as an hour. A number of states have immediate processing time for online filing. And Ohio has a processing time of one day for mail filing.
In short, Connecticut has a middle-of-the-road, average processing time for LLC filing.
Why Is Connecticut A Favorable Place For Forming An LLC?
Connecticut can be a favorable place to start an LLC if you’re looking for a place surrounded by scenic beauty and thriving manufacturing, real estate, medical and insurance industries. It’s also worth considering staying in the state if you already live there due to the average LLC formation processing times if the other states you’re considering take longer.
