LLC Beginner’s Guide

Written By Brittnie Villano

Want to Start a Legit Business in CT or CA?

We’re Helping some clients in both Connecticut and California start their own businesses and created a quick guide on everything LLC.

What’s an LLC ?

LLC = Limited Liability Company
It separates you from your business legally and financially. That means:

  • If your biz gets sued, your personal money, car, house = safe

  • You get to look more professional (banks, clients, vendors trust LLCs more)

  • It’s flexible and way easier than starting a corporation

Why Start an LLC?

  • Protects your personal assets

  • Easier taxes (you can choose how to be taxed)

  • Legit look for branding and contracts

  • Flexible ownership structure

  • Makes bookkeeping cleaner

Step-by-Step: How to Start an LLC

1. Pick a Business Name

  • It must be unique in your state.

  • Must end with “LLC” or “Limited Liability Company.”

  • Check availability:

    • CT: https://service.ct.gov/business/s/

    • CA: https://bizfileonline.sos.ca.gov/

2. Choose a Registered Agent

  • Required in both states.

  • Can be you, someone you know, or a registered agent service.

  • Must be 18+ and available during business hours at a physical address in-state (no PO Boxes).

3. File Your Formation Docs

🔹 Connecticut

  • File “Certificate of Organization” online.

  • Filing Fee: $120

  • File here: CT Business Center

🔹 California

  • File “Articles of Organization – LLC Form LLC-1” online or by mail.

  • Filing Fee: $70

  • File online: CA bizfile

4. Create an Operating Agreement

  • Required in CA, not legally required in CT but highly recommended in both.

  • Outlines roles, ownership, how money gets handled, etc.

  • You can DIY it or use a free template.

5. Get an EIN (Free)

  • Apply through the IRS: Apply for EIN

  • Needed to open a bank account and file taxes.

6. Register for State Taxes

🔹 Connecticut

  • If you sell goods or have employees: register for a Sales & Use Tax Permit at myconneCT.

  • Permit Fee: $100

🔹 California

  • Register for a Seller’s Permit if selling goods: CDTFA

  • Also check if you need to register with the EDD if you’ll have employees.

7. Pay Annual Fees

🔹 CT Annual Report

  • Due each year by March 31

  • Cost: $80

  • File here: CT Business Center

🔹 CA Franchise Tax

  • Flat fee: $800/year (due even if you make no money)

  • First payment due by the 15th day of the 4th month after forming (unless waived under first-year exemption for certain new LLCs).

  • Annual Report = Statement of Information (Form LLC-12) due every 2 years ($20)

8. Open a Business Bank Account

  • Use your EIN and formation documents

  • Keeps business and personal money separate (this protects your liability shield)

9. Track Your Money

Use:

  • QuickBooks, Wave, Google Sheets, or a bookkeeper

  • Save 25–30% of profits for taxes

How to Pay Yourself from an LLC

➤ Single-Member LLC (CT & CA):

  • You don’t get a paycheck — you do an owner’s draw (transfer money to your personal account).

  • You pay self-employment taxes on the profits.

➤ Multi-Member LLC:

  • Profits are divided based on your Operating Agreement.

➤ Elect S-Corp (optional if profitable):

  • Once you earn over ~$50K in net profit, you can elect to be taxed as an S-Corp to save on self-employment taxes.

  • You’ll need to:

    • Pay yourself a reasonable salary

    • File quarterly payroll

    • File IRS Form 2553

Extra Notes: Running Your LLC Right

  • Use your business name on everything

  • Never mix personal and business money

  • Track all income + expenses

  • Keep up with renewals (CA’s $800, CT’s $80)

Brittnie Villano