A Connecticut LLC operating agreement can make your business opening process more accessible and provide legal protections. The document is essential for laying out your new company’s rules and regulations, establishing member rights and duties, and establishing legal credibility.
Is an Operating Agreement Required in Connecticut?
No, an LLC operating agreement is not required in Connecticut. However, that’s not to say that you shouldn’t make one.
Types of LLC Operating Agreements
Connecticut allows LLCs to be formed by individuals or groups. The operating agreement you choose should match your ownership structure and clearly define how your business is managed.
Single-Member LLC Operating Agreement
Outlines how a sole owner manages and operates their limited liability company.
Multi-Member LLC Operating Agreement
Designed for entities entering into a partnership with multiple contributing members.
Laws
There are a few fundamental state laws surrounding LLC operating agreements, outlined in Chapter 613a, Uniform Limited Liability Company Act:
- Sec. 34-243d: Operating agreement: Scope, function and limitations.
- Sec. 34-243e: Operating agreement: Effect on limited liability company and person becoming member. Formation of agreement that becomes an operating agreement.
- Sec. 34-243f: Operating agreement: Effect on third parties and relationship to records effective on behalf of limited liability company.
Costs and Fees
Setting up a limited liability company in Connecticut requires:
- Certificate of organization filing fee – $120.
- Name reservation fee – $60.
- Annual report – $80.
How to Form an LLC in Connecticut
Step 1 – Download the Application
The first step toward forming a limited liability company in Connecticut is downloading applications from the Connecticut Secretary of State website. You can download these on your computer and fill them out.
There are two different types of applications that you can choose from. One is a domestic application, and the other is a foreign one. You’ll need to select the type of LLC you’re forming before completing the documents.
Step 2 – Pay Your Filing Fee
Once you’ve finished filling out your application, you must pay to open it. The filing fee can be paid via mail or hand delivery to the Connecticut Secretary of State. Whichever way you choose, include the application with your payment.
Step 3 – Operating Agreement
Your limited liability company is ready to hit the ground running once you’ve filed your application and paid any necessary fees. At this point, writing up your operating agreement is a good idea. Your document must describe how your business plans to manage and run its operations.
Step 4 – Get an Employer Identification Number (EIN)
The last step of the process is to get an Employer Identification Number, also known as an EIN. This is necessary for your business to perform financial transactions, hire employees, apply for loans, and open bank accounts.
The EIN is also necessary for tax purposes. The IRS uses it to track your business transactions and ensure you’re not overpaying your taxes.
Sample
Below, you can view a sample Connecticut LLC operating agreement. You can customize this template using our document editor and then download in PDF or Word format.
