Making the Most of Connecticut Corporation and Partnership Law
Protect your assets when you incorporate in Connecticut
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.
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.
Try: 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.
Try: 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.
Try: 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.
- 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.
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