What You Should Know About LLC Taxes In Connecticut
Connecticut is one of the most beautiful states. It’s a great place to live, and it’s also a wonderful location to run a business. Whether you have a restaurant, a home business, or if you are a sole proprietor for a digital marketing agency, it’s good to have as much protection as possible. If you have created your company already, you should consider setting up a limited liability company to provide you with protection. LLCs are well known for offering an ample amount of protection from lawsuits that may occur as a result of disgruntled employees, and customers, that may try to sue you for your assets. The LLC will act as an entity, protecting you from this type of litigation, and the potential of losing out on much of what you have worked so hard to achieve. There are also taxes that must be paid if you have a Connecticut LLC. Let’s discuss how these work and also how much those taxes will be.
Where Should You Go To Start Your LLC?
To start your limited liability company, a quick visit to the Secretary of State office in the state of Connecticut would be your first destination. However, taking a trip to that location physically is not necessary. In fact, you can download all of the documents that you will need to form your LLC directly from their website. For you to start to fill out the form, however, you need to decide on what name you are going to use. Keep in mind that the name of your limited liability company does not have to be the same, or even remotely similar, to the name of the business that you have. One of the reasons for this leeway is that there could be another company in the state of Connecticut that has a similar name to the one that you would like to use. If there is, you must choose something different, and that is why you can check with the business name database. Once you have determined that you can get a name, you will want to fill out and submit the application for reservation of name in Connecticut which will reserve it for you for 120 days.
Registered Agents And Articles Of Organization
The next thing that you will need to do is file your articles of organization. This is going to include pertinent information. This includes the name and address of your organizer for the LLC. This will also need the name and address of the place of business for the limited liability company. Next, you must also list the registered agent. This is the person, or the company, that will be the individual in the middle between you and paperwork that needs to be delivered. This will also need the email addresses of those that are members or managers in your limited liability company. Likewise, that information, along with the signature of the organizer, must be added to complete the documentation. Filing fees will also be necessary. This is $120 which can be paid online or through the postal mail. Finally, you will have one other fee that you will have to pay which will be your annual taxes.
Annual Taxes For LLCs In Connecticut
It is important to set aside at least 30% of the revenue that you are generated prior to paying your taxes. The exact amount can be determined by the end of the year. They will typically send the bill long before it needs to be paid. By following this simple rule of saving money to pay your taxes, you can pay them along with the business entity tax which is $250 annually. This preplanning will enable you to not be shocked by how much you will need to pay for everything that your business is generating. One other factor to consider regarding your taxes is that, even if you do not make very much, you still have this fee that must be paid annually. Therefore, if you are going to do this, and you are going to start a business, make sure that you know how to become profitable so that these fees and taxes do not become a burden.
Paying taxes is just one of the many things that you need to consider when forming an LLC. However, if you consider how much you could lose out on if you don’t have a limited liability company in place, you will see that it is a much better decision to make. You can start filing this today by going to the website for the Connecticut Secretary of State. However, if you really want to make sure that this gets done properly, contact a professional that can help you fill out everything and submit it properly so that everything can be done the first time.