The key to making the most of Connecticut corporation and partnership law is the decision to incorporate your business. A corporation affects your ability to gain capital, controls the amount of debt you assume and determines your tax obligations. However, these advantages must be balanced against the additional taxes your business will incur.

Connecticut partnership law makes a partnership subject only to personal income tax, unlike a corporation. On the other hand, business partners may be held responsible for business debts.

There are several options for forming a company under CT corporate law. These include:

1. Connecticut corporation as a profit or non-profit corporation. An S corporation (S-corp) is taxed under Subchapter S of the Internal Revenue Code which generally does not include income taxes.

2. A Connecticut limited liability company, also known as an LLC. Connecticut LLCs are hybrid business entities that share the characteristics of both corporations and partnerships. It pays incomes taxes and is more suitable for a small business with one owner.

3. A Connecticut limited partnership. This type of partnership has limited partners in addition to general partners.

Action Steps
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Determine the type of corporation that best suits your business under Connecticut corporation law

The most important factors to consider are the personal liability obligations and tax implications. You should also familiarize yourself with the operating requirements and reporting regulations.

I recommend: The Connecticut Licensing Info Center has a checklist for starting a new business in Connecticut that includes a description of business entities. CompaniesIncorporated provides a specific discussion of creating an LLC in Connecticut.

Find an attorney that specializes in Connecticut corporation law

Incorporating in Connecticut must comply with the disclosure, operating and reporting requirements. Connecticut corporation law specifies these requirements in detail.

I recommend: Reid and Riege in Hartford practices corporate law and provides extensive information on business formation basics. The Law Offices of Stephen L. Ganis is located in Stamford and provides corporate law services including business planning.

Find sites to help you perform Connecticut corporation registration

You must file the registration forms and pay the associated fees as required by Connecticut corporation law in order to perform Connecticut LLC registration. You may also need to file Articles of Incorporation, depending on the type of corporation you decide to register.

I recommend: Forming an LLC Guide provides the steps needed to create a business specifically in Ohio and also discusses the advantages of each business type. Business Nation offers a variety of incorporation services and also has a variety of resources for businesses in Ohio.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Connecticut corporation law requires annual fees and filings to maintain your corporation. Corporations are automatically C-corps unless they specifically register as S-corps with the primary difference being the way they are taxed. One person may frequently hold more than one position in these corporations and many if not all shareholders are also directors in a small corporation.

Incorporating in Connecticut is a necessary step to take your business to the next level. Whether you’re a solo entrepreneur or small business, Connecticut corporate law is there to protect your rights as a business owner.

Connecticut partnership law serves business owners by providing tax incentives and tax rebates for business expenditures and start up costs. Connecticut corporation law also protects the employer/employee relationship by helping business owners meet state standards.

Connecticut partnership law meets the needs of small businesses wanting to form partnerships between business owners. Laws protecting the rights of individual partners within a business or firm help a Connecticut corporation or Connecticut LLC. Forming a Connecticut corporation or Connecticut LLC will:

1. Provide tax benefits for both small and large businesses.

2. Offer protections only available to corporations and LLCs.

3. Protect your investment through appropriate state licensing and compliance.

4. Establish your firm or business as a competitor in your field.

Action Steps
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Use a professional web based corporation company to incorporate in Connecticut

Corporation companies specialize in handling the documents you need to follow to set up a Connecticut LLC. Connecticut LLCs get up and running faster by using companies designed to help business owners understand corporation law and partnership law. These filing companies do not provide legal services or consultations of any kind, so make sure you understand your articles of incorporation before submitting the appropriate paperwork.

I recommend: Active Filings and Legalzoom.com are both online incorporation services with competitive prices for filing corporation documents in Connecticut.

Visit the Connecticut Secretary of State to form a Connecticut LLC

You don't need legal representation to set up an LLC. Connecticut Secretary of State Offices provide documents and fee schedules for Connecticut corporation registration.

I recommend: Visit the Connecticut Secretary of State’s website for information on how to incorporate in Connecticut. Visit Mycorporation.com for additional information about Connecticut corporation and partnership law.

Hire an attorney specializing in setting up Connecticut LLCs and corporations

This is the most expensive way to go when thinking about incorporation, but the advantages of having a professional do the work for you far outweigh the cost. An experienced corporate law attorney helps you understand the language of Connecticut corporation law.

I recommend: Ivey, Barnum and O’Mara, LLC has offices in both Greenwich and New Canaan Connecticut, and offers their clients a full array of business services to meet all your incorporating needs. Levett Rockwood P.C. located in Westwood serves a variety of business needs for any sized company in Connecticut.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Determine if forming an LLC in Connecticut is right for you. Talk to your advisor or attorney about the different type of corporations available, their functions and which one best suits your needs.

Connecticut corporation and partnership law education and training will teach you how to create business entities such as a Connecticut incorporation or limited liability company (LLC). It is especially important for attorneys who specialize in corporation and partnership law to understand the tax implications for a Connecticut LLC and corporation.

The requirements needed to practice Connecticut corporation law is determined by the state and may depend on the specific type of corporation law you wish to practice. A legal education in corporate law has three general phases:

1. The practice of advising a client on forming an LLC of Connecticut requires a law degree. Practicing attorneys will generally require a Juris Doctor (J.D.) degree from a law school approved by the state of Connecticut.
2. An aspiring lawyer will need to pass a bar exam that is administered by the state. A background check will also be performed along with a character and fitness evaluation.
3. The lawyer must apply to Connecticut’s licensing authority and pay the required fees. The admittee then takes an oath to comply the rules regarding the practice of law in Connecticut.
   

Action Steps
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Complete the formal education needed to learn about Connecticut LLC law

There are a variety of universities in Connecticut that grant J.D. degrees recognized by the state of Connecticut. The required courses must be updated to keep up with changes in corporate law.

I recommend: The University of Connecticut School of Law is a member of the Association of American Law Schools and is accredited by the American Bar Association. Cornell University Law School is a top law school that grants J.D. and L.L.M degrees.

Gain admission to the bar in order to form an LLC in Connecticut

As a Connecticut corporate lawyer, your clients will frequently wish to form corporations or partnerships with their businesses. Connecticut has specific bar exam requirements and also allows lawyers licensed in other states to practice law in Connecticut through reciprocity agreements.

I recommend: LexisOne provides details on applying for and taking the Connecticut Bar Exam. Kaplan PMBR summarizes the exam format and the scoring procedure for the bar exam in Connecticut.

Obtain the additional requirements needed to practice Connecticut LLC laws

Get licensing information necessary for a career in Connecticut corporation law. An attorney in Connecticut must also meet that state's continuing education requirements in order to renew a license to practice law.

I recommend: The State of Connecticut Judicial Branch provides a detailed FAQ on getting admitted to the Connecticut bar. The Connecticut General Assembly describes the process for admission to the bar in Connecticut.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider a Master of Laws (LLM) degree as a means of distinguishing yourself from other attorneys who practice Connecticut partnership law. An LLM is a postgraduate law degree that generally requires an additional year of study at a law school. Graduates from regional schools frequently obtain an LLM in order to compete with graduates from more highly ranked law schools. This is also an excellent opportunity to begin specializing in corporate law.