So, you want to start a business in Connecticut? Congratulations, since you’re already a half way there. Thinking about business opportunities is a first step towards a successful business. And Connecticut is a great state for that. In this post we are going to explore what you need to know about starting a business in Connecticut.
Write a business plan
You should always have a plan, since having a plan is most important, but often undervalued step to starting a business in Connecticut. A lot of people only write a business plan when they need a loan from a bank. Banks won’t offer a loan if there is no business plan. That is a valid reason, but there is another side of a coin. Writing a business plan gets the idea out of entrepreneur’s head and helps to create a road map for their business. Business planning is the essence of every successful business endeavor. You even need to plan how to relocate your business as a professional.
Have a business structure
A business structure, or in legal terms, a business entity, is a way that your business is legally organized. Depending of your business, you can choose one of four primary ways of organizing your business structure. The four business entities include the sole proprietorship, partnership, corporation and LLC.
A Sole Proprietorship is an individual that decides to go into business for themselves. This is the easiest way of organizing business. It is also a least expensive way of creating a business. The owner is personally responsible for all actions and debts of his company. That means that the owner has an unlimited liability. That is the biggest downside. There is no filing for a sole proprietorship in Connecticut.
General Partnerships consist of two or more entrepreneurs conducting a business together. Just like the Sole Proprietorship, there is no formal filling, and it has unlimited liability.
A Corporation is a business entity that is separated from the individual. If you want to start a corporation, know that you won’t have unlimited liability. They are also more expensive and more complicated. Way more complicated. But their major advantage is that the corporation shields the owner’s personal assets should the corporation be sued.
Limited Liability Company
LLC is a popular entity choice. It does not have many burdens of corporations. There is no holding a board of directors meeting, shareholders’ meeting and so on. And the Limited Liability Company has the greatest tax flexibility of the four entities.
Register your business name
Your next step, after deciding a business entity, should be the registration of a name. If you are a sole proprietorship or general partnership in Connecticut, and you’re doing business under your first and last name, there is no filling. But if you run your business under a fictitious name, you’ll need to file a Trade Name registration with the Town Clerk’s Office where your business is located.
Starting a business in Connecticut cannot be done without the moving company
If you want to start a business in Connecticut, you should hire a good moving company. If you already have a business, and you want smooth office relocation with professional help, you can always hire a good movers who are specialized in a business moving.
Connecticut movers specializing in long distance moves will help you get your things across any number of US states. You want your things to be safe from harm. Yes, you may move from home to home, but business relocation is a serious task that should be left to professionals.
Look for a good space for your business
You should be aware of costs tied to rent if you want your business to flourish. Many people choose small offices since they are aware of costs of renting a space for their business. When looking for good office space, you should always take into consideration two things. Firstly, you should consider the costs. How much will it cost you to rent a space. And also, is the location of your business enough of a compensation for higher costs.
And the other question is space. So, is the space adequately large for your business? So, you should find a nice middle path between those two extremes. Verifiedmovers.com can help you with that.
Apply for permits and business licences
You need to apply for business licences and permits if you want to start a business in Connecticut. Find a good consulting company for that.
Hire new employees
Before hiring employees, you should be aware that there are few things you need to know. You need to register as an employer. Employers will need to register with the Connecticut Department of Labor and the IRS Connecticut Department of Revenue Services. You need to fill out paperwork for your new employees. There are four forms you need to fill: CT-W-4, W-4, I9, and the New-Hire Reporting Form. You need to be familiar with labor laws. If you want to hire new employees while starting a business in Connecticut, you need to be familiar with the rules of the state.
Be aware that the employer pays no part of the withholding tax, but is responsible for collecting and remitting the taxes that are withheld. You’ll need to withhold money from each one of your employees, and pay their federal and state income taxes.
- Write a business plan – Don’t just write a business plan if you need a loan from the bank. Having a plan is a staple of every successful entrepreneur.
- Also, choose your business entity (if you don’t already have one). Realize that every entity has its fair share of advantages and downsides.
- Register a name for your business. For some entities and for some names you need no filling.
- Starting a business in Connecticut requires hiring a good moving company. Also, try to look for a good office space so you don’t feel cramped. But be aware of the costs.
- Apply for permits and licences.
- Get yourself familiar with the laws before you hire new employees.