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How To Set Up Your Connecticut Business License
Doing business in Connecticut often require some type of business license. Although that is not always the case, it is sometimes necessary due to the activities that you will be doing on a daily basis. If you have a physical store where people are coming inside, you will certainly need to have one. Those that work from home, however, may not be required to have an official business license. There is a certain protocol you must follow in order to obtain one. It is usually done in conjunction with setting up your DBA or getting your LLC. If you would like to set one up this year, follow the simple instructions on how to get your Connecticut business license for your company.
What Is The First Step?
The first step of the process is to register your entity. Essentially, this is registering your business with the Department of revenue. This is where you will then apply for what is called a tax ID number, specifically for the state of Connecticut. There is a form that you will fill out and you will either mail it and/or you can go to their website and accomplish the same task. Once this is done, via the Secretary of State, you will then have the legal right to do business.
Does Everybody Need One?
According to the state of Connecticut, there are certain types of companies that will need one. For example, if you have a corporation, you will certainly need to have one. If you are forming a partnership with a business partner, or if you form an LLC, you will need to apply for the CT business license. Nonprofit organizations are also required to do the same. The only business entity that will not need one is a sole proprietorship. Therefore, if you want to do business in Connecticut, and you do want to have an LLC for protection, this is something that you will need to apply for.
Can You Be Penalized If You Don’t Have One?
It is certainly possible for individuals to be penalized if they are doing business without this license. The only time that this does not apply is for sole proprietorship which is not required to have one. The Secretary of State could also contact you to shut down your business. You could lose out on all of the money that you have spent to set everything up. There are also different types of licenses that you will have to get depending on the type of commerce or business that you are doing.
Different Types Of CT Business Licenses
The different licenses will include a sales tax license, a state tax ID license, and also one for business operations. It is necessary to also have permits to do different types of transactions. Need to have a seller’s permit, a reseller permit, or a zoning permit depending on the business you are in. Home occupation, signage, and also land use permits may also be mandatory. All of this can be cleared up by working with businesses that work with companies that are operating in Connecticut.
How Much Does It Cost?
The amount that it will cost often depends upon the type of revenue that you are generating. It also may be determined by the type of incorporation that you have set up. It is important to work with either a legal or business professional that can consult with you to determine this amount. Local authorities may also be helpful in the circumstances. In many cases, you may have to submit an application to get an answer. At the very least, while you are applying for your license or your permit, you can ask the individual that you are working with about these questions to get a definitive and current answer.
Should You Set Up An LLC Or Not?
In most cases, the LLC is the best thing that you can do. If you have a business, and you are worried about defending your assets from others, it is absolutely essential. Some people, however, may be hesitant in doing so if they do not want to get a state license to do business. It could be that they do not want to pay the fees or they do not want to go through the trouble of doing so. However, outside of having a sole proprietorship, will definitely need to have one. Therefore, if you do own a sole proprietorship, and it is under an LLC, any transactions will require some type of business license in this state. With that information, you can make an educated decision as to what type of company you would like to set up in Connecticut.
Although this is not the case for other states, it is certainly required for any business outside of a sole proprietorship to set up a business license. There are mandatory reasons for doing so, and if you avoid getting one, any sales that you make could make you liable for penalties from the state itself. To get your questions answered, speak with professionals that do this all the time. They can help you file paperwork and ensure that you are compliant. All of this information is essential for anyone that is interested and setting up a business in Connecticut.