If you own a business in Connecticut, you may be considering incorporating. Before you incorporate, you'll need to select a business name and determine if that name is available. You or a licensed attorney will want to search name availability. Once your name is selected, a decision must be made as to what type of corporation best fits your business, i.e., should you choose an S corporation or a C corporation?
In choosing the corporation type, there are tax considerations that need to be taken into account. If you make the wrong choice, your corporation could be double-taxed, which can impact profit. For a more detailed breakdown of the benefits of incorporating as a C-Corp or an S-Corp, check out FindLaw's Business Tax Basics.
Board of Directors
Once you decide what type of corporation you are creating, you will need to select the individuals that you would like on your board of directors. Then, you will need to draft and file your corporation's articles of incorporation.
After the articles of incorporation have been filed, you will need to obtain a business license and any other permits that might be required for the type of business you are forming. These permits can be obtained from the city or the county in which your business is located.
Organizational Meetings, IRS and Related Matters
Following the filing of the articles of incorporation, please be aware that additional procedures must be taken to comply with corporate requirements in the State of Connecticut. For example, the Organizational Meeting must be held within the first year of incorporating. Then, the Organization and First Report must be filed within 30 days of the Organizational Meeting.
Since you are operating a business, you may have employees. This means you will need to register on the federal level with the Internal Revenue Service (IRS) for a tax ID number. You also may have to register as an employer at state and local levels, as well. Enlisting the aid of a professional can make the task of incorporating much easier and ensure that all of the proper paperwork has been filed on-time and correctly.
The following table highlights the main provisions of Connecticut's Corporate Laws See State Guide: Corporations Offices for more general information on those topics.
|Statute||Sec. 33-600, et. seq.|
|Preparing Your Certificate of Incorporation||
To form a Connecticut corporation, you will need to file a certificate of incorporation with the Secretary of State and pay a filing fee. Your corporation officially exists as soon as the certificate is filed. The certificate of incorporation may contain many provisions, but it must include the following:
|Steps for Incorporation||
Note: Deciding where to incorporate and initiating the incorporation process are important steps on your business's path to success. To ensure that your new business complies with your state's legal requirements at every stage in the corporate formation process, you may wish to consult an experienced Connecticut business organization attorney.
Research the Law:
Connecticut Corporate Laws: Related Resources
Contact a qualified attorney.