Business Fundamentals: How to Start a Business in Connecticut

From Structure to Strategy A Roadmap for New Entrepreneurs

Starting a business can be one of the most empowering decisions you'll ever make but without the right foundation, it's easy to get lost in paperwork, legal jargon, and confusion.

At CTBE – Connecticut Business & Education, we're committed to equipping multicultural entrepreneurs with the knowledge and tools to launch with clarity and confidence.

This guide breaks down four critical steps to help you start your business the right way.

Choose the Right Business Structure (LLC vs. Sole Proprietor)

Before you register anything, decide what legal structure fits your goals. In Connecticut, the two most common types for small businesses are:

Sole ProprietorshipSimple and low-cost to start. You operate under your own name or a “DBA” (Doing Business As). However, you are personally liable for all business debts and obligations.

Limited Liability Company (LLC) A more formal structure that separates your personal and business assets. It protects your personal finances if your business faces legal or financial issues. The filing fee in CT is $120, and annual reports are required.

CTBE Tip: If you plan to scale, work with vendors, or apply for funding, forming an LLC offers greater flexibility and protection.

Register Your Business in Connecticut

After choosing your structure, follow these basic steps:

Register with the Connecticut Secretary of the StateUse the CT Business One Stop Portal to create your account, choose a business name, and register online.

Apply for an EIN (Employer Identification Number)This is like a Social Security number for your business. You’ll need it to open a business bank account and file taxes. Apply free through the IRS website.

Obtain Any Required Licenses or PermitsDepending on your industry, you may need specific state or local permits. Check the CT.gov License Lookup Tool or contact your local city clerk.

Write a Business Plan That Gets Results

A business plan isn’t just for banks it’s your personal roadmap. It helps you define your goals, stay focused, and measure success.

Key Sections of a Business Plan:

Executive Summary (Your vision)
Company Description (Who you are)
Market Analysis (Who you're serving)
Product/Service Description
Marketing Strategy
Financial Projections
Operations Plan

CTBE Tip: Keep it simple and realistic. Focus on why your business matters, who you serve, and how you’ll make money.

4. Build Your Business Credit Early

Many small business owners overlook this step, but business credit opens the door to funding, equipment, and vendor relationships.

Steps to Start Building Business Credit:

Open a business bank account
Apply for a D-U-N-S Number via Dun & Bradstreet
Establish accounts with vendors that report to credit bureaus
Pay all bills and loans on time
Monitor your credit through Nav or Experian Business

CTBE Tip: Keep personal and business finances completely separate. This protects your credit and builds trust with lenders.

Final Thoughts

Starting a business in Connecticut is exciting and CTBE is here to walk with you every step of the way. From choosing your structure to securing credit, this journey is about more than forms and fees. It’s about building something that reflects who you are and what your community needs.

To learn more, access free business templates, or connect with a CTBE advisor, visit www.ctbe.org or contact us today.

Interested in learning more? Join our upcoming Business Start-Up Bootcamp or subscribe to the CTBE newsletter for more training and tools.